AL-AMEEN INSTITUTE OF MANAGEMENT STUDIES

NEAR LALBAGH MAIN GATE HOSUR ROAD BANGALORE-560027

A report on
MARKETING STRATEGY FOR NIKE SHOE’S

Developed by:
MOHAMMED IBRAHIM RIYAN
REGISTRATION NUMBER-B1914847/A013’A’
A PROJECT REPORT Under the guidance
Dr. IRFAN MUMTAAZ KS SIR

Submitted in partial fulfillment of the requirement For the award of the degree
Of Bachelor’s of Business Administration (BBA) for the year 2021-2022

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 BONAFIDE CERTIFICATE
Certified that this project report entitled
“MARKETING STRATEGY FOR NIKE SHOES” is the bonafide work of
MOHAMMED IBRAHIM RIYAN
REGISTRATION NO:-19/A013’A’
who carried out the project work under my supervision in the partial
fulfilment of the requirement for the award of the Bachelor’s of
Business Administration
(BBA) – Bangalore University

SIGNATURE SIGNATURE
Head of the Department faculty in charge

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 DECLARATION

I Mohammed Ibrahim Riyan bearing Reg.no:-

hereby declare that this project report entitled has been prepared by me
towards the partial fulfilment which is being submitted in partial fulfillment
of the requirement for the award of the Bachelor’s of Business Administration
(BBA) Degree under the guidance of

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 ACKNOWLEDGEMENT

A lot of effort has gone into this training report.

My thanks are due to many people with whom I have been closely associated.
I would like all those who have contributed in completing this project.
First of all, I would like to send my sincere thanks to Mr Irfan for his helpful hand
in the completion ofmy project.I would like to thank my entire beloved family &
friends for providing me monetary as well as non – monetary support, as and
when required, without which this project would not have completed on time.
Their trust and patience Is now coming out in form of this project.

MOHAMMED IBRAHIM RIYAN

REGISTRATION NUMBER:

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 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.

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 CONTENT
S.NO PARTICULARS PAGE
NO.
CHAPTER-1 INTRODUCTION TO STUDY
1.1 INTRODUCTION
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1.2 OBJECTIVES OF THE STUDY
1.3 SCOPE OF THE STUDY
1.4 LIMITATIONS OF THE STUDY
CHAPTER-2 PROBLEM STATEMENT
2.1 PROBLEM STATEMENT (INCLUDING LITERATURE)
CHAPTER – 3 RESEARCH METHODOLOGY
3.1 CONCEPT OF RESEARCH METHODOLOGY
3.2 RESEARCH HYPOTHESES
3.3 RESEARCH MODEL
3.4 RESEARCH PLAN
3.5 SAMPLE PLAN
3.6 RESEARCH PROCEDURE
CHAPTER –4 COMPANY PROFILE
CHAPTER – 5 DATA ANALYSIS & INTERPRETATION
CHAPTER-6 RESULT & DISCUSSION
CHAPTER-7 SUGGESTION & RECOMMENDATIONS

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 CHAPTER-8 LIMITATIONS & SCOPE OF
FUTURERESEARCH

8.1 LIMITATION
8.2 SCOPE OF FUTURE RESEARCH
CHAPTER – 9 CONCLUSION
10 BIBLIOGRAPHY
QUESTIONNAIRE

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CHAPTER 1
INTRODUCTION
TO STUDY

8
CHAPTER-1 INTRODUCTION TO STUDY
The project has been a learning experience for me and would not have been
possible without the support and guidance of the above mentioned people.
Needless to say, I alone remain responsible for any error that might have crept
into the pages,despite of my best possible efforts to avoid them.This marketing
research project report has been written keeping in mind the Indian operations of
Nike – the global sports shoe giant. It aims first, at analyzing the sports shoe
industry of 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 Puma to achieve its target of becoming the
No-1 shoe brand in India.

1.1 Introduction-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 secondguessing them can be
expensive, says the professor who teaches 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.

9
 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

1.2 Objectives of the Study-To the main objective of this study is learn the
strategic plan that has been written keeping in
mind the Indian operations of Nike – the global sports shoe giant.It aims at
analyzing the sports shoe industry India and finding a place in it for Nike.To study
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 #1
sport shoe brand in india.To understand the nature of problem faced by
customers towards the various products of NIKE To study the nature of customer
satisfaction efforts implemented by NIKE for its customers.

1.3 Scope of the Study-The project report begins with a brief overview of the
product category being dealt with,namely premium quality 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

10
strategy are stated. After stating the objectives and reasoning behind them, the
actual marketing programs are described in details.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 project report 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 research project deal with the
various ways in which the recommendations, once implemented, can be
monitored and controlled.
1.4 Limitation of the Study-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. Geographical scope of the
study was limited to a small area, which may not represent the whole sector of
India; Size of the sample is 50, which is, of course small in comparison to entire
population. Due to limitation of time only few people were selected for the study.
So the sample of consumer was not enough to generalize finding of the study.
There can be many interpretations & explanations to the data collected. This is
empirical study and the research provides the explanation as understood by the
researcher only. The source of data for the study was primary data with the help
of self-administered questionnaire. Hence, the chance of biased response cannot
be eliminated through all necessary steps were taken to avoid the same. The data
taken from the secondary source like internet, newspaper, books may lack some
proper explanation or may be not properly interpreted. The responses of
customers are presented in a way convenient to the researcher and can be
interpreted in different ways

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CHAPTER 2
PROBLEM
STATEMENT

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CHAPTER 2 PROBLEM STATEMENT
PROBLEM STATEMENT (INCLUDING LITERATURE REVIEW)
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. This marketing research
project report has been written keeping in mind the 13 Indian operations of Nike
Inc. – the global sports shoe giant.
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 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.

13
CHAPTER – 3
RESEARCH
METHODOLOY

14
CHAPTER – 3 RESEARCH METHODOLOGY

3.1 CONCEPT OF RESEARCH METHODOLOGY

Research will 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. In short, the search for Knowledge
through Objective and Systematic method of finding solutions to a problem is
Research.

SAMPLE SIZE AND SAMPLING TECHNIQUES:

The number of items selected from the universe to represent the universe is
called size of the sample. It is not feasible to cover all the customers of NIKE. So
for the purpose of this study, a total of 50 respondents will be approached. The
sampling technique used for the study will be convenience sampling. DATA

COLLECTION:
For the study, both primary and secondary data will be collected. For primary
data, a questionnaire can be developed and administered to the respondents who
are the customers of NIKE in Delhi by the way of interview method. For secondary
data, existing literature in form of magazines, papers, company literature, book,
web sources will be consulted. Question relating to customer behaviour towards
Nike shoes can also be included.

QUESTIONNAIRE:
For conducting the primary customer satisfaction survey for NIKE SHOES, a
structured questionnaire with multiple choices related to overall satisfaction level

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of customers, their grievances related to products offered by NIKE, etc. will be
asked. The questionnaire will be administered using interview technique.
QUESTIONNAIRE DESIGN FORMULATION Under this method, list of questions
pertaining to the survey will be prepared consumers of shoes. Questionnaire will
have structured type questions as well as unstructured type questions. Structured
objective type questions will be prepared for the respondents with fixed response
categories. Some of the questions will be of multiple-choice type. The questions
will have more than one alternative.

RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Online survey is Questionnaire.

STEPS FOLLOWED IN COMPLETING THE STUDY

Internet sites containing information on Nike shoes & marketing will be browsed.
Sample survey will be conducted. Data will be thoroughly checked for error.

DATA PROCESSING METHODOLOGY

Once the primary data will be collected, they will be edited – inspected,
corrected and modified. Tabulation – bring similar data together and totalling
them in meaningful categories.
Questionnaires will be edited. The responses will be thoroughly checked in home
for incorrect, inconsequential or contradictions categories will be developed only
often the replies has been reviewed The collected data will be placed into an
order. Percentages of respondents answered similarly will be calculated and
placed in a table. Then it will be interpreted.
This will involve drawing conclusion from the gathered data.
Interpretation changes the new information emerging from the analysis into
information that is pertinent or relevant to the study. Research comprise defining
and redefining problems, formulating hypothesis or suggested solutions;

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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.

3.2 RESRARCH HYPOTHESES A hypothesis is a specific, testable prediction. It

describes in concrete terms what you expect will happen in a certain
circumstance. A research hypothesis is the statement created by researchers
when they speculate upon the outcome of a research or experiment. The
hypothesis is generated via a number of means, but is usually the result of a
process of inductive reasoning where observations lead to the formation of a
theory.
The Purpose of a Hypothesis A hypothesis is used in an experiment to define the
relationship between two variables. The purpose of a hypothesis is to find the
answer to a question. A formalized hypothesis will force us to think about what
results we should look for in an experiment.
The first variable is called the independent variable. This is the part of the
experiment that can be changed and tested. The independent variable happens
first and can be considered the cause of any changes in the outcome. The
outcome is called the dependent variable. The independent variable in our
previous example is not studying for a test.
The dependent variable that you are using to measure outcome is your test
score. Let's use the previous example again to illustrate these ideas. The
hypothesis is testable because you will receive a score on your test performance.
It is measurable because you can compare test scores received from when you
did study and test scores received from when you did not study. A hypothesis
should always:
 Explain what you expect to happen
 Be clear and understandable
 Be testable
 Be measurable
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 And contain an independent and dependent variable
How to Develop a Hypothesis Another important aspect of a hypothesis is that it
should be based on research. Remember that the purpose of a hypothesis is to
find the answer to a question. The first thing you should do if you want to answer
a question is to find as much information on the topic as you can. Before you
come up with a specific hypothesis, spend some time doing research.
Then, start thinking of questions you still have. After thoroughly researching your
question, you should have an educated guess about how things work. This guess
about the answer to your question is where your hypothesis comes from. Let's
imagine that you want to know why the leaves on the tree in your front yard
change color in the fall.
First, you would research this phenomenon. You observe what you see happen
and read about the subject. You discover that the color change happens when the
temperature cools.
What question does this information make you ask? You come up with the
following question: 'Does temperature cause the leaves to change color on the
tree in my front yard?' Next, you ask yourself if this can be tested. If it can be
tested, you'll write a hypothesis that states what you expect to find. Your
hypothesis could be 'If lower temperatures cause leaves to change color and the
temperature surrounding a tree is decreased, then the leaves will change color.'
How to Write a Hypothesis Let's learn how to properly write a hypothesis using
the previous example of tomorrow's test.
Examine the differences in the following hypotheses: Not studying may cause a
lower grade on my test. This statement is not clear enough to be useful. Your
hypothesis should be as specific as possible. You're trying to find the answer to a
question. If the hypothesis is vague, it's unclear how to find the answer to your
question.
If I do not study, then I will make a low grade on the test. This statement makes a
common mistake. You have written a simple cause and effect prediction that is
based on an unstated assumption. You are assuming that not studying lowers test
performance. You want to minimize these assumptions when you state your
hypothesis.

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A hypothesis is clearer if you state a proposed relationship before making the
prediction. Every true experimental design must have this statement at the core
of its structure, as the ultimate aim of any experiment.
The hypothesis is generated via a number of means, but is usually the result of a
process of inductive reasoning where observations lead to the formation of a
theory. Scientists then use a large battery of deductive methods to arrive at a
hypothesis that is testable, falsifiable and realistic.

3.3 RESEARCH MODEL When selecting the research method it is usually advisable
to consider whether you can base your work on an earlier theoretical model.
Sometimes a model, even a preliminary one, can help your work decisively, and in
such a case it will also affect the logical process of analysis.
There are three alternatives which are discussed in more detail later on:
 exploratory research (you have no model to start with)
 expanding or refining an earlier model
 research for testing hypotheses.
Exploratory Research Research is exploratory when you use no earlier model as a
basis of your study. The most usual reason for using this approach is that you
have no other choice. Normally you would like to take an earlier theory as a
support, but there perhaps is none, or all available models come from wrong
contexts. On the other hand, even when there is relevant theory and models,
sometimes you may prefer not to use them.
Reasons for this can be:
 Your goal is to document the object as completely as possible, not restricting
the description to those topics that have been documented in earlier studies.
 The object of study differs from all earlier studied objects. The goal of the study
is to describe its exceptional character which existing theories are unable to
portray. In the light of existing theories the object of study appears as an
inexplicable anomaly.

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 Phenomenological pursuit into deep understanding and distrust on earlier
descriptions and explanations.

Exploratory research means that hardly anything is known about the matter at
the outset of the project. You then have to begin with a rather vague impression
of what you should study, and it is also impossible to make a detailed work plan in
advance.
The gradual process of accumulating intelligence about the object of study means
also that it will be impossible to start by defining the concepts of study. You have
to start with a preliminary notion of your object of study, and of its context.
During the exploratory research project, these provisional concepts then
gradually gain precision. In the absence of tried models and definite concepts you
must start the exploratory study from what you have: one or more objects of
study.
It is common that in the beginning of exploratory study you will take a holistic
look at the objects. It means that you start by gathering as much information
about the objects as possible, and postpone the task of cutting away unnecessary
data until you get a better.
Any object can be looked at from several different viewpoints, either from the
angles of various established sciences or just from miscellaneous practical points
of view. As soon as possible, you should specify the viewpoint of your study and
explain how you understand or "take" the object. This does not mean that you
have to to start your work by clarifying the essence of your object of study, i.e.
what the object really is.
Instead, you should try to contemplate and clarify how you see the object: should
it be defined on micro level as a result of the individuals' instincts, drives and
experiences, or maybe on macro level as an expression of development in society.
The method of alternating point of view (like in the diagram above) can even be
used as a research method. It is especially suited to an explorative researcher
working alone.
It will deepen his understanding and can sometimes reveal valuable new aspects
to the topic, cf. Hermeneutic Research. The progress of a project of study
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becomes easier as soon as you have defined your point of view and your problem.
After this, you will need to gather only such empirical knowledge that is related to
the problem; that will enable you to restrict the material you will have to analyse.
This does not mean that you should disregard all the cases that do not fit into
your conjectures - sometimes anomalies or surprising cases can point the way to
important amendments or corrections to existing theory.

Sometimes it is difficult to define what is relevant in advance; it only becomes

apparent through analysis. In such a case you can simply start by studying one
single specimen or case which illustrates the interesting problem, and then you
continue studying a gradually growing number of objects until it becomes
apparent that you cannot get deeper into the problem.
An indication of such a "saturated" state of study is that the study of new items
or cases no longer reveals new interesting information. You will often need to
gather quite a lot of material before you can define the final goal of your project,
and a large part of this material will not be used in the final analysis.
The exploratory analysis of empirical field observations starts by checking that the
field reports are written down intelligibly and without ambiguity. Often the
original reports have been made in hurry; in that case they should be clarified by
the initial observer or interviewer.
The same person is often best adapted to extricate the significant findings from
observations because he/she is able to judge which details are important and
which can be left out. In the same time he/she can start building a preliminary
model from those patterns which seem to recur often, or estimate how well an
earlier known model fits the observations.
As soon as the invariance in the data becomes apparent you can omit all the
material that is no longer relevant and compress the remaining, relevant
information.
This compacting is usually done with the help of coding the typical and frequent
elements, that is by assigning short names, letters or other symbols to them. By
cross-tabulating the symbols you can get an overall view of all the material, and it
will be easier to uncover its structure or rearrange it so that a latent structure
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becomes visible. Analysis in exploratory research is essentially abstraction and
generalization. Abstraction means that you translate the empirical observations,
measurements etc. into concepts; generalization means arranging the material so
that it disengages from single persons, occurrences etc. and focuses on those
structures (invariances) that are common to all or most of the cases. It will seldom
be possible to divide exploratory study into such clear phases as is common in the
case that the object has been studied earlier.
According to Alasuutari (1993 p.22), in qualitative analysis of empirical findings,
you can distinguish two phases but these two overlap:
 simplification of observations
 interpretation of results (or "solving the enigma") In the simplification phase,
the material is inspected from the theoretical point of view of the study project,
and only the points relevant from this angle are noted. Details differing from one
individual to another at random are omitted or pushed aside so that the general
lines of the data can be discerned more easily.
Simplification continues by finding the relationships between separate
observations or cases. Some tools for this work are comparison and classification.
The goal is to find the general rule or model that is valid in all or most of the
observations. This model can be, for example, development or evolution,
causality, or a conscious action to attain an outcome which is typical in normative
research.
In any case the analysis starts from separate cases and aspires to create one or a
few general models. "Solving the enigma" does not always mean answering
exactly those questions that were asked at the outset of the project. Sometimes
the most interesting questions are found at the end of the research, when the
researcher has become an expert on the subject. It is often said that "data teach
the researcher".
The purpose of descriptive exploratory research is to extract a structure from the
source material which in the best case can be formed as a rule that governs all the
observations and is not known earlier (per the definition of exploratory study).
Finding the unknown structure may need some creative innovation, because even
the most sophisticated computerized analysis methods cannot automatically

22
uncover which type of structure is concealed in data. Usually you first have to
formulate a tentative pattern for the assumed structure in the observations and
then you can ask the computer to estimate how well the data corresponds to the
model, cf. Tools for Analysis.
In normative studies the exploratory approach is unusual, because the normative
target - improving something in the object - in general engages with a known
theoretical background which you can take as a basis of your study, thus shifting
to the usually more effective method of Research on the Basis of Earlier Theory
which is explained in the next paragraph.
Nevertheless, sometimes it happens even in normative study that the direction of
desirable improvement is initially unclear, and your only choice is to start with the
exploratory approach. Such is the situation when you know that the present state
of the object of study is unsatisfactory but you do not know exactly what is wrong
in it, neither do you know of any superior usable substitutes for it. For example, in
the initial stage of action research everybody perhaps agrees that the present
mode of working is unbearable but all known remedies seem inapplicable, and
the participants therefore start making from empty table a descriptive model of
the work to be used as a basis of development.
Research on the Basis of Earlier Theory Many of the problems of exploratory
research can be avoided if the researcher can start with a model, developed in
earlier studies, which he uses as a "working hypothesis". The model can either
consist of cases (holistic model) or of concepts (analytic model). During the
analysis, the researcher tries to see whether the collected material conforms to
the model or must he correct the model or look for a more suitable one.

The World of Theories Often the study simply proceeds by enlarging an earlier
model. A good rule to be followed in such a situation is: Start from what is known.
Proceed by enlarging the mapped area, and connect the new intelligence to the
known facts. Sometimes all that you need is only an adjustment of a few details in
the existing model.
This is often the case when the study shall give grounds for a forecast or new
product development and the environment of intended application is slightly

23
different from the one of the earlier study. The existence of a tentative model
helps in selecting the logical structure of the entire research project and planning
it. The model helps you to decide which material has to be collected, from which
cases or specimens and about which attributes or variables of these cases. Even
the recording of observations is facilitated because often you will be able to utilize
earlier definitions of variables.
The same applies to analysis methods: often you can borrow them from earlier
works. In descriptive study the project is often arranged as distinct phases, like in
the diagram above. First you demarcate the population about which you need
knowledge, then select a sample, gather the empirical data, analyze them,
perhaps with the same method as in the earlier study from which the model was
taken, and finally assess the findings.
Adopting models from earlier treatises involves a risk: it can affect your
observations so that you wrongly discard the anomalies or those cases which too
much differ from what would be expected on the basis of the old theory. If this
happens, you will never discover the weaknesses of the old model.
Material Process and Monetary Process - In normative study models are used for
describing the existing problems and defining the improvements to the object of
study. If you can find an existing descriptive model of the object, made in an
earlier study, you can often transform it into a normative model by adding an
evaluative dimension to it.
For example, the model of industrial production on the right can be made
normative by adding the dimension of profitability, and a target for it. Methods
for analyzing information and evaluations with normative models are discussed in
Normative Case Study , Normative Comparison , Normative Classification ,
Normative Study of Variables and Normative History Once the target for
development has been defined with the help of a normative model, the project
often continues as planning the practical operations, perhaps also realizing them
and measuring the results.
Sometimes the same model can be used as a basis of all these operations, like in
the figure on the left, but usually you will have to refine a model successively
several times in the process of transforming a definition of goals into a plan of
action or into a design of a product. The latter process, for example, can include
24
such phases as product concept, various drafts of design, a series of prototypes
and finally a detailed proposal for the product.

Optimally a normative research project proceeds through successive stages:

1. evaluation of the initial state and defining the need for improvements
2. analysis of relationships and possibilities to change things
3. synthesis: proposal for improvement
4. evaluation of the final state.
It is quite usual that you will have to repeat the above sequence several times
before you get an acceptable result. Normative projects often deal with complex
practical problems, and when making a theoretical model of the problem, the
researcher may wish to make the model more easily manageable by simplifying it,
i.e. by leaving out factors that seem nonessential.
However, in the final practical test or appraisal it may turn out that an excluded
factor is important after all, which makes it necessary to adjust the model and
repeat the sequence once more. Hypothesis based Study Sometimes the object of
study is already well known and you just want to investigate its behaviour in a
specific situation. In such a situation you can choose to construct a hypothesis, i.e.
an expectation of the behaviour of the object, or a preliminary answer to the
question that you are studying. You are usually free to decide if you want to use
one or not. E.g., if you want to learn if x really equals two times y, you can set as
your hypothesis x = 2y During your project you then collect empirical data which
allow you to test your hypothesis and see if it is true or not.
Hypotheses are always based on analytic models, and they are often causal. They
are always accurately stated and quite often stated as an arithmetic model, like
for example y = f(x) where x = the independent variable, y = the dependent
variable. The above hypothesis includes only one variable of each type; there are,
however, usually more of them in real research projects. If you choose to use a
hypothesis, you should plan the logic around it in the way that Bunge (1967, 9)
explains:

25
1. Ask well formulated and fruitful questions.
2. Devise both grounded and testable hypotheses to answer the questions.
3. Derive logical consequences of the assumptions.
4. Design techniques to test the assumptions test the techniques for relevance
and reliability.
5. Execute the tests.
6. Interpret the results.
7. Evaluate the truth claims of the assumptions and the fidelity of the techniques
determine the domains in which the assumptions and the techniques hold. It is
seldom - perhaps never - possible to reach an absolute certitude when verifying a
hypothesis. This is the case especially when the hypothesis is intended to hold
true anywhere, i.e. also for the cases that are similar to those that have been
examined.
Therefore most modern researchers accept in practice the idea that when
speaking of 'truth' of a hypothesis they actually mean verisimilitude or credibility.
This distinction, nevertheless, has no decisive consequences in practice: you can
use 'credible' findings exactly in the same way as 'true' findings. Usually the object
of study is influenced by various factors besides the independent variable
mentioned in the hypothesis.
These disturbances, sometimes called "noise", prevent the researcher from
clearly seeing the influence of the independent variable. Such factors whose
systematic influence is known beforehand can simply be eliminated by making a
suitable correction in the measurements. Unknown factors which cause
detrimental random variation in the dependent variable are more difficult to
handle.
The researcher can be prepared for disturbances and for the random variation of
the explained object in alternative ways:
 By studying more cases and calculating the average of the data

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 By shielding the research object in such a way that the disturbing influences will
be eliminated. This usually requires an experiment set up in a laboratory.
 By choosing the variables in the hypothesis in such a way that the influential
variables are dealt with as explaining factors and not as random variation. The
method of hypothesis was originally developed for descriptive studies. This type
of research aspires to get factual knowledge about the object of study, and the
criterion which is used in accepting or rejecting a descriptive hypothesis is
factuality or truthfulness.
The same criterion is applied to other phases of descriptive project as well, as is
explained in Assessing Input Data , Assessing Correctness of Analysis and
Assessing Theoretical Output. In normative research a hypothesis is seldom used
as such, but it is interesting to note that a normative project often includes a
decisive focal point which determines the project's success or failure in much the
same way than the test of a hypothesis does in a descriptive project.
This focal point is the final practical testing of the normative proposal. Because
the target in normative study is not just to get information but primarily to
improve the object of study or other similar objects, the principal criterion when
testing normative development proposals is not truth but instead practical value
and functional operativeness.
This criterion is discussed in Evaluating Normative Proposals. Another difference
to testing a descriptive hypothesis is that the process of development need not
end in the test. If the first proposal must be rejected the normal practice is to
prepare and test another proposal. Tests of normative proposals are habitually
carried out when developing a new product.
Their procedures are discussed in Presenting the Draft and Prototype and
Evaluating a Design Proposal. Similarly, in the development of an activity the
project usually includes practical testing of the proposals, as described in
Assessing Activity Development.

3.4 RESEARCH PLAN Research Design Research design can be thought of as the
structure of research – it is the "glue" that holds all of the elements in a research
project together. A marketing research process cannot be completed without an
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effective research design. A research design precisely specifies particular means
and methods through which required information can be collected for structuring
the research as well as seeking specific practical solutions to the problem.
According to the famous author Bernard S. Phillips: “Research design is the
blueprint for the collection, measurement and analysis of data.
It aids the scientist in allocation of his limited resources by posing crucial choices:
Is the blueprint to include the experiments, interviews, observations, analysis of
records, stimulation or some combination of these?
Are the methods of data collection and research situation to be highly
structured?
Is an intensive study of a small sample more effective than a less intensive study
of a large sample?
Should the analysis be primarily qualitative or quantitative?”
According to Green & Tull in their book ‘Research for Marketing Decisions’; “A
research design is the specification of methods and procedures for acquiring the
information needed to structure or to solve problem.
It is the overall operational pattern or framework of the project that stipulates
what information is to be collected from which sources and by what procedures.”
Fred N. Kerlinger in “Foundations of Behavioural Research” defines research
design as: “The plan, structure and strategy of investigation conceived so as to
obtain answers to research questions and to control variance.”
Therefore, it can be summarised that research design is one step prior to data
collection. It is clear from the above definitions that the basic purpose of research
design is the right investigation. Exploratory research design Exploratory research
design is conducted frequently in cases where the problem is not clearly defined
and also in situations where focus on real scope of work is not clear.
Here researcher takes initiative to study the problem in detail and then generate
hypothesis to be tested. This is the initial research which is done before
conclusive research is undertaken. Exploratory research aids in determining the
best research design, selection of subjects and data collection method and
sometimes it even summarises that the problem or issue doesn’t exist.

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Exploratory research is quite informal in nature. It relies on secondary research
data like:
 Reviews from literature already available
 Qualitative approaches like friendly discussion with consumers, employees,
competitors, or with management
 Formal discussions like in depth interviews, pilot studies, case studies, face to
face interviews, focus groups and projective methods Though the results of
exploratory research are not usually conclusive but they help in taking decisions
properly in a given situation. However, lot of indications are given in the result of
qualitative research as to when, why, how, something happens but doesn’t make
it clear how many or how often. In other words, this method is not a good
representation of the sample data taken for research
Conclusive research design This type of research means providing information
which can be useful in taking right kind of decisions and/or reaching at right
conclusion. Conclusive research requires more formal design than the exploratory
research. This research is mostly quantitative in nature. It means the information
can be easily counted and summarised.
The main objective of this kind of research is to give reliable information and a
clear picture related to the population with the help of a valid research source or
element. Testing hypothesis is also conducted in this method. Normally, this
method relies on both primary data as well as secondary data. Primary data
denotes the data collected for the current study and the secondary data denotes
the data used from existing sources.
Both the sources help in analysing a different kind of problem every time than the
original one. There are mainly two types of conclusive research which you are
going to study in the next sections.
These are:
 Descriptive or statistical research
 Causal research Descriptive Research Design Conclusive research design is
subdivided into descriptive research and causal research. You will study
descriptive research design in this section. Descriptive research is a commonly
29
used type of conclusive research. Descriptive studies are formal, rigid, well-
structured and focused in nature. This type of research involves the description of
relationships between the number of variable factors and working out
conclusions.
Descriptive study starts with specific research questions where substantial
information about the research problem is known by conducting the pilot study.
Thus, descriptive research means a preconceived, formal and structured design to
seek solution to a particular problem. Descriptive Research is concerned with the
ex-post facto analysis of related and inter-related variables in real life situations.
This analysis can be done on the basis of field study and surveys.
The cross-sectional study is the most popular and widely used Descriptive
Research technique. It involves the collection of information from any given
sample of population elements only once. It is useful because it provides a quick
snapshot of what's going on with the variables of interest for our research
problem.
Descriptive research studies require proper data analysis and inferences and the
checklist of effective data analysis is as follows:
 Mention the question number correctly.
 Mention headings, subheadings and other names correctly and sequentially.
 Check information, the content of questions. The content should be able to
generate information needed to draw meaningful conclusions.
 Consider the reasons for including questions.
 Conduct primary analysis and identify information value.
 Conduct further analysis if required.
For example, most significant example of this type of research is Census which is
used to count the number of population in the country. Firms normally use
opinion poll method. This is also a part of this research design
Descriptive Research can be further divided into ‘Cross-sectional Design’ and
‘Longitudinal Design’ which you are going to study in next subsections.

30
 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.
Thus, following are their merits and demerits: Advantages of cross-sectional
design
 Cross-sectional method is user friendly, easy to understand and simple to use.
 Minimum resources are required Close Ended: -

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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” Cross-sectional design There
are two types of Cross-sectional design.
 Single cross-sectional design: In this, only one sample of respondents and their
information is utilised and that is used only once in a study.
 Multiple cross-sectional designs: In this, information is captured with the help of
two or more samples of respondents. Each sample’s information is used only for
once. Though information is collected at different times from different samples of
the study. You can analyse the cross-sectional design in a negative and positive
way. to work out on this study
 This design is the best design in determining prevalence system (prevalence
system involves the number of cases or occurrences that exist at a specific period
of time in a defined population).

Disadvantages of cross-sectional design

 This study is unable to find out the cause and effect relationship among various
factors.
 This study does not provide clear set of explanations for their findings.
You can understand this research method with the help of following example:

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A study between height and age of people which shows negative relationship.
It gives following conclusive answers:
 Young people are comparatively taller.
 As people become old, they lose their height Tall people have more risk to their
life in comparison to short people. This example shows that cross-sectional study
does not give a full explanation of the case. This method is unable to support their
findings as well.

3.4.2 Longitudinal design

This study is concerned with panel research where information is generated by
the continuous analysis of variables at regular intervals. Thus, in panel research a
sample of respondents are interviewed on a regular basis to gain information. In
this type of research design, sample of population elements would be fixed and
measured repeatedly.
The variables would remain the same for this research study. This study is useful
in conducting lot of activities like trend analysis, tracking changes in behaviours
over time like brand switching, levels of awareness, turnover etc) and checking
the long-term effects of marketing activities like market share, pricing effects etc.
Advantages of longitudinal design
 The primary advantage of longitudinal designs is that they are very economical.
 Since the sample respondents are fixed, there is no error of subject variations.
 This research design gives more efficient estimators with same number and
pattern of observations in comparison to cross sectional designs.
 It helps you in making differentiation between change over time in aggregate
data and changes within individuals.
 Longitudinal research design enables factors of interest for their continuity and
stability over time and also identifies the sequential developments. Disadvantages
of longitudinal design
 To select appropriate longitudinal design is a very crucial task.

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 Another challenge of longitudinal design is related to their development effects,
duration or measurement time.
 The observations in this study are not independent.
 Methods of analysis are also not as well developed, specifically for more
sophisticated models.
 There are problems in using various software in this study.
 One of the major challenges of longitudinal study is that this method involves
complex calculations.

Causal Research Design Descriptive research is one type of conclusive research,

other type of conclusive research is causal research design. Causal Research
design is the study of cause and effect relationships between two or more
variables. Causal research depends on interviews and in the conduct of
experiments. Causal research is best suited when the aim of research is to
recognise variables that cause the phenomenon being predicted and understand
why they cause what is being predicted.
William J. Goode & Paul K. Hatt in ‘Methods in Social Research’ defines cause and
effect relationship as: "when two or more cases of given phenomenon have one
and only one condition in common, that condition may be regarded as the cause
and effect of that phenomenon." The set of causes generated to predict their
effects, can be deterministic or probabilistic in nature.
The deterministic cause is the one which is essential and adequate for stimulating
the occurrence of another event. While the probabilistic cause is the one that is
essential, but is not the only one responsible for the stimulation of the occurrence
of another event. The objective is to determine which variable might be causing
certain behaviour i.e., whether there is a cause and effect relationship between
variables, causal research must be undertaken.
This type of research is very complex and the researcher can never be completely
certain that there are not other factors influencing the causal relationship,
especially when dealing with people's attitudes and motivations.

34
There are often much deeper psychological considerations that even the
respondent may not be aware of.
To identify causal mechanisms, the most universal plan of action taken by
researchers is what we call the ‘experiment design’ where causal analysis is
applied to a standard randomised experiment.
Experimental research provides the most powerful design for testing causal
hypotheses.
Experimental Designs: This kind of study is a process which plans natural order
events to meet the specific objectives. In this method, certain factors are
controlled to see the effect on 34 certain other factors.
Here researcher observe the study carefully and do the experiment in a correct
order. Because this study emphasis on the importance of the concept and ensure
the right type of information, result will totally depend upon the manipulation
done by the researcher. He makes new changes and interventions in the concept.
The following process will help you in determining the concept of experimental
design:
 trace out the problem and define them
 define the population
 focus on the sampling need
 define the experimental design The experimental design method includes
various types:
 Equivalent time series design Here treatment cannot be given to all the
respondents simultaneously. Training is given to all the employees rotationally so
that different types of training can be provided to different groups of people.
 Classic experimental design Subjects are assigned randomly in this method.
Treatment groups are conformable to ANOVA designs in two ways:
 Between subject design: There are different subjects for each variable of
independent variables. E.g. to study the impact of political advertising, different
types of media exposure are used.

35
 Within subjects' (repeated measures) designs: There are same subjects used for
each level of the independent variable, as in beforeafter studies or panel studies.
 Waiting list design This method is used when demand exceeds supply. And due
to limited supply, legitimate treatment is given to only some of the citizens and
not to all the citizens as it is impossible due to shortage.
 Tie-breaking design Here the main focus of the study is depending upon merit
basis. This situation occurs usually in academic field where normally tied scores
are received on merit based exams. Then these scores are randomly assigned to a
specific treatment and a control group.
 Spatial separation design
Treatment groups are separated and have no experiment-relevant
intercommunication. For example, participative management concept is tried
with a treatment group of -new, randomly assigned employees in one location
but not in another location.
 Indifference curve designs Some people will be indifferent towards receiving or
not receiving the treatment, when the attractiveness of the treatment can be
adjusted at a point. Thus treatment is assigned to a number of people randomly.
 New organisation design When a new organisation is established, like one
providing job training to the new entrants, opportunities may well arise which
permit the random assignment of clients to a control.
 Mandate change design When the solution is unknown but change is required,
treatment of random assignment is done as in random assignment of students to
classes with alternative books.
 Quasi-experimental design A quasi-experimental study is a type of evaluation
which aims to determine whether program or intervention has the intended
effect on a study’s participants.

This is an experiment in which in which one has little or no control over the
allocation of the treatments or other factors being studied. This study estimates
the causal impact of an intervention on the targeted population. The following

36
example would help you in getting this point more elaborative. For example, let
us suppose you have completed your class 12th. Now you are going to take
admission in graduation. For this you already filled the admission forms of
different colleges. Now various colleges assign the cut off list on merit basis. Then
you can see the list for your enrolment in the college. This cut off list is a very
good example of this quasi experimental research design study.

3.5 SAMPLE PLAN Population .

Population: Population refers to any group of people or objects that form the
subject of study in a particular survey and are similar in one or more ways. For
example, the number of full-time BBA students in a business school could form
one population. If there are 200 such students, the population size would be 200.
We may be interested in understanding their perceptions about business
education. If, in an organization there are 1,000 engineers, out of which 350 are
mechanical engineers and we are interested in examining the proportion of
mechanical engineers who intend to leave the organization within six months, all
the 350 mechanical engineers would form the population of interest. If the
interest is in studying how the patients in a hospital are looked after, then all the
patients of the hospital would fall under the category of population. Element: An
element comprises a single member of the population. Out of the 350 mechanical
engineers mentioned above, each mechanical engineer would form an element of
the population.
Universe or population Statistical survey or enquiries deal with studying various
characteristics of unit belonging to a group. The group consisting of all the units is
called universe or population. Determining average per capita income of the
people in the city, all earning individuals in the city form the population Types of
population

37
Note: Although many populations appear to be exceedingly large, no truly infinite
population of physical objects actually exists. Given limited resources and time it
is practically not possible to count the number of grains of sand on the beach.
Such populations are termed as infinite population for our study.

Sampling frame The white pages, a collection of telephone directories in the

United States, was commonly used as a sampling frame for opinion polls. In
statistics, a sampling frame is the source material or device from which a sample
is drawn. It is a list of all those within a population who can be sampled, and may
include individuals, households or institutions. Importance of the sampling frame
is stressed by Jessen and Salant and Dillman.
In many practical situations the frame is a matter of choice to the survey planner,
and sometimes a critical one. Some very worthwhile investigations are not
undertaken at all because of the lack of an apparent frame; others, because of
faulty frames, have ended in a disaster or in cloud of doubt.
Obtaining and organizing a sampling frame
In the most straightforward cases, such as when dealing with a batch of material
from a production run, or using a census, it is possible to identify and measure
every single item in the population and to include any one of them in our sample;
this is known as direct element sampling. However, in many other cases this is not
possible; either because it is cost prohibitive (reaching every citizen of a country)
or impossible (reaching all humans alive).
Having established the frame, there are a number of ways for organizing it to
improve efficiency and effectiveness. It's at this stage that the researcher should

38
decide whether the sample is in fact to be the whole population and would
therefore be a census.
This list should also facilitate access to the selected sampling units. A frame may
also provide additional 'auxiliary information' about its elements; when this
information is related to variables or groups of interest, it may be used to
improve survey design.
While not necessary for simple sampling, a sampling frame used for more
advanced sample techniques, such as stratified sampling, may contain additional
information (such as demographic information). For instance, an electoral register
might include name and sex; this information can be used to ensure that a sample
taken from that frame covers all demographic categories of interest. (Sometimes
the auxiliary information is less explicit; for instance, a telephone number may
provide some information about location.)
Sampling frame qualities An ideal sampling frame will have the following qualities:
 all units have a logical, numerical identifier
 all units can be found – their contact information, map location or other
relevant information is present
 the frame is organized in a logical, systematic fashion
 the frame has additional information about the units that allow the use of more
advanced sampling frames
 every element of the population of interest is present in the frame
 every element of the population is present only once in the frame  no elements
from outside the population of interest are present in the frame
 the data is 'up-to-date. Types of sampling frames The most straightforward type
of frame is a list of elements of the population (preferably the entire population)
with appropriate contact information. For example, in an opinion poll, possible
sampling frames include an electoral register or a telephone directory.
Other sampling frames can include employment records, school class lists, patient
files in a hospital, organizations listed in a thematic database, and so on.

39
On a more practical levels, sampling frames have the form of computer files. Not
all frames explicitly list population elements; some list only 'clusters'. For
example, a street map can be used as a frame for a door-to-door survey; although
it doesn't show individual houses, we can select streets from the map and then
select houses on those streets.
This offers some advantages: such a frame would include people who have
recently moved and are not yet on the list frames discussed above, and it may be
easier to use because it doesn't require storing data for every unit in the
population, only for a smaller number of clusters.
Sampling frames problems The sampling frame must be representative of the
population and this is a question outside the scope of statistical theory
demanding the judgment of experts in the particular subject matter being
studied.
All the above frames omit some people who will vote at the next election and
contain some people who will not; some frames will contain multiple records for
the same person. People not in the frame have no prospect of being sampled.
Because a cluster-based frame contains less information about the population, it
may place constraints on the sample design, possibly requiring the use of less
efficient sampling methods and/or making it harder to interpret the resulting
data.
Statistical theory tells us about the uncertainties in extrapolating from a sample to
the frame. It should be expected that sample frames, will always contain some
mistakes. In some cases, this may lead to sampling bias. Such bias should be
minimized, and identified, although avoiding it completely in a real world is nearly
impossible. One should also not assume that sources which claim to be unbiased
and representative are such.
In defining the frame, practical, economic, ethical, and technical issues need to be
addressed. The need to obtain timely results may prevent extending the frame far
into the future. The difficulties can be extreme when the population and frame
are disjoint.
This is a particular problem in forecasting where inferences about the future are
made from historical data. In fact, in 1703, when Jacob Bernoulli proposed to

40
Gottfried Leibniz the possibility of using historical mortality data to predict the
probability of early death of a living man, Gottfried Leibniz recognized the
problem in replying:
Nature has established patterns originating in the return of events but only for
the most part. New illnesses flood the human race, so that no matter how many
experiments you have done on corpses, you have not thereby imposed a limit on
the nature of events so that in the future they could not vary.
Gottfried Leibniz Leslie Kish posited four basic problems of sampling frames:
1. Missing elements: Some members of the population are not included in the
frame.
2. Foreign elements: The non-members of the population are included in the
frame.
3. Duplicate entries: A member of the population is surveyed more than once.
4. Groups or clusters: The frame lists clusters instead of individuals.
Problems like those listed can be identified by the use of pre-survey tests and
pilot studies.

SAMPLING UNIT
A basic concept in sampling theory is the sampling unit, which is the minimum
unit of observation for information on the operative variables. The sampling unit
must be clearly defined for constructing the sampling frame. By convention in
statistics, a capital “N” is used to refer to the number of sampling units making up
the universe, and a lowercase “n” for the number of sampling units in the sample
itself. lines, discount offers are the primary motivational factor for opening
permission based email (increased

SAMPLE SIZE Sample size must be determined independently for each universe,
according to three factors: the variability of the most important numerical
variable, the level of confidence required and the acceptable level of error. This is

41
summarized by the following formula:7 no = (s2 . t2 , v)/ e2 (1) in terms of
variance and absolute error or no = (cv2 . t2 , v)/ e2 in terms of variation
coefficient and relative error where: no = size of sample s 2 = variance of the
sample t 2 , v = critical value of Student’s ‘t’ test with significance level and v
degrees of freedom e = acceptable error cv = variation coefficient = standard
deviation of the sample / sample mean v = degrees of freedom= n – 1 Variance (s
2 ) and variation coefficient (VC) indicate the degree of homogeneity of the
variable under consideration in the sample.
These are calculated - manually by calculator or with Excel – with the data from a
preliminary sample or earlier survey. Acceptable error (e) refers to the allowable
difference between sample mean and mean of the universe.
It is set in accordance with previous knowledge of the phenomenon under study,
and it is advisable to keep it within 10-20% - which can also be expressed in
absolute values with the units of measurement of the variable in question. The
critical value of t is obtained from tables in statistics books or from Excel, selecting
first the level of significance ( ) or its complement, the level of confidence (1- ).
A level of confidence of 0.95, which is equivalent to a = 0.05 is enough for surveys
of this kind. In addition, in order to define the degrees of freedom (v = n-1), a first
assessment of the number (n) of cases in the sample is needed. These two values
are the entry data for the tables.
Subsequently, the sample size is specified by means of an iterative process, where
the value of ‘n’ is obtained using Formula (1) to determine the value of ‘t’. This
formula shows that the number of elements making up the sample is directly
proportional to the variance and value of t2 , and inversely proportional to the
square of the error.
The sample size will be large when: (a) the element under study is highly variable
(high variance or variation coefficient); (b) the level of confidence sought is high;
and/or (c) the acceptable error is low. Conversely, the sample size will be small if
the phenomenon shows little variance, a low level of confidence is set, and a high
level of error is accepted. From this it is clear that the size of a sample does not
depend on the size of the universe.

42
Thus, starting with an equal level of confidence and error acceptance in a tropical
rainforest covering the same surface area as a temperate pine forest, the sample
size will be larger for the rainforest because of its greater heterogeneity in the
wood stock variable in relation to the pine forest. So far no consideration has
been given to the size of the universe in determining sample size.
Nevertheless, for a small universe (fewer than 120 sampling units), it is necessary
to correct the value of no obtained from Formula (1), by using Formula (2)8 : n =
no/(1 + no/N) (2) 43 where: no = sample size obtained from Formula (1) N = size
of universe n = definitive size of sample Annex III gives the calculated sample size
for the estimation of fuelwood consumption in a residential sector for varying
universe size and error margin and corrected for finite population.
It applies for the variable “specific fuelwood consumption”, where, due to the
abundance of case studies, the variation coefficient is known. Variables to be used
in calculating sample size
• To define sample size of any sector or branch of woodfuel demand, it is best to
use the unit consumption variable.
• In the industrial, commercial and institutional sectors it is not always possible to
find data on unit consumption, but one can use the volume of production per unit
time, which is closely correlated with unit consumption.
• In the case of direct supply (from forest, plantation, etc.) the important
variables may be stock or productivity, but the first is recommended as there is
more secondary information and it is easier to measure in a preliminary sample. If
there are no data on stock, basal area data (G) may be used.
• In sectors or branches of indirect supply (sawmills, carpentry workshops, etc.),
volume of production per unit time must be used.
• For provision sectors: in the case of producers, it is best to use volume of
woodfuel production, traders, volume of sales; and transport operators, transport
capacity, all expressed per unit time.
The final decision on the size of the sample will depend on the agreed trade-off
between desired accuracy and availability of monetary, human and time
resources for conducting the field survey. It is recommended that sectors or

43
branches having greater importance in woodfuel demand, supply and provision
be given priority in the allocation of resources for field surveys so that estimations
can be more accurate. In situations where it is not possible to realize the sample
size determined by statistical calculation, it is essential to survey at least ten
sample units per sector, branch or stratum, and to indicate the error in
estimation, finding the e value of Formula (1). 6 In statistics “universe” is also
referred to as “population”. 7Formula used to determine the sample size needed
to estimate the population mean; for hypothesis testing for differences between
means and variances other formulas are available. Useful statistics reference
books include Zar 1999, Cochran 1977, and Steel and Torrie 1988. Also termed
“correction for finite population”.

SAMPLE DESIGN THE BASIS OF SAMPLING: -

Consumers of Nike shoes are chosen randomly, so that unbiased, representative
sample may be obtained. The process of selecting samples from the population is
referred to as sampling design. There are two types of sampling designs—
probability sampling design and non-probability sampling design. Probability
sampling designs are used in a conclusive research whereas nonprobability
sampling designs are appropriate for an exploratory research. Process of Sampling
Design Before you study the process of sampling design you must be aware of the
stages of the sampling.
There are basically two stages of sampling:
 Single-stage sampling In this sampling, targeted population elements are
collected into a sampling frame. To select a sample of element, one of the
techniques is used among various techniques. These techniques are random
sampling, stratified sampling and systematic sampling.
 Multi-stage sampling Here sampling is done sequentially like country level is
taken as first stage; census track level comes at second stage; block level at third
stage; household level at fourth stage and within household level at final stage. In
multi stage sampling, hierarchical structure of the population is taken into
consideration.
Further sampling design can be explained with the help of five steps process
44
Process of Sampling Design Let’s discuss each one in detail.
 Define the targeted population:
Population is defined as
(i) elements,
(ii) sampling units,
(iii) extent and
(iv) time Example
if a company wants to monitor the sales of its recently launched product, the
population will be:

(i) Element – company's product

(ii) Sampling unit – retail outlet, supermarket
(iii) Extent – Jaipur
(iv) Time – September 10th to Oct l0th 2006

 Identify the frame of sampling: Sampling frame could be yellow pages,

telephone directory, various colonies in a municipal area list mentioning the
details of all colonies.
Example: If you want to know about a car owner in Jaipur city, then the
transport office (RTO) can provide the name, address and type of vehicle
possessed.
 Specify sampling unit and techniques: It is defined as the element about which
information is required and then selecting probability or non-probability methods.
Example: retailers in a locality, husband or wife or children in a family.
 Determine the sample size: This means deciding how many elements of the
target population are to be chosen. The sample size depends on the type of the
study. The sample size is small in exploratory study and this is large in size in
descriptive study.
 Select the sample and execute the process

45
This is the final step in the sampling process.
Example: The National Health and Nutrition Examination Survey (NHANES)
sampling procedure consists of 4 stages Sample of People Selected in Four Stages
In the first stage, a sample of countries is selected.
These are called Primary Sampling Units (PSU).
In the second stage, these units are divided into segments.
In the third stage, a sample of households from each segment is selected.
In the final stage, individuals from each selected household are chosen as the final
sample.

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.

3.6 RESEARCH PROCEDURE Chi-Square Test Chi-square is a statistical test

commonly used to compare observed data with data we would expect to obtain
46
according to a specific hypothesis. For example, if, according to Mendel's laws,
you expected 10 of 20 offspring from a cross to be male and the actual observed
number was 8 males, then you might want to know about the "goodness to fit"
between the observed and expected.
Were the deviations (differences between observed and expected) the result of
chance, or were they due to other factors. How much deviation can occur before
you, the investigator, must conclude that something other than chance is at work,
causing the observed to differ from the expected.
The chisquare test is always testing what scientists call the null hypothesis, which
states that there is no significant difference between the expected and observed
result.
The formula for calculating chi-square ( 2 ) is: 2= (o-e)2 /e That is, chi-square is the
sum of the squared difference between observed (o) and the expected (e) data
(or the deviation, d), divided by the expected data in all possible categories. For
example, suppose that a cross between two pea plants yields a population of 880
plants, 639 with green seeds and 241 with yellow seeds. You are asked to propose
the genotypes of the parents. Your hypothesis is that the allele for green is
dominant to the allele for yellow and that the parent plants were both
heterozygous for this trait.
If your hypothesis is true, then the predicted ratio of offspring from this cross
would be 3:1 (based on Mendel's laws) as predicted from the results of the
Punnett square. Predicted offspring from cross between green and yellow-seeded
plants. Green (G) is dominant (3/4 green; 1/4 yellow), first determine the number
expected in each category. If the ratio is 3:1 and the total number of observed
individuals is 880, then the expected numerical values should be 660 green and
220 yellow. Chi-square requires that you use numerical values, not percentages or
ratios
Then calculate 2 using this formula, as shown in Table B.1. Note that we get a
value of 2.668 for 2 . But what does this number mean? Here's how to interpret
the 2 value:
1. Determine degrees of freedom (df). Degrees of freedom can be calculated as
the number of categories in the problem minus 1. In our example, there are two

47
categories (green and yellow); therefore, there is I degree of freedom.
2. Determine a relative standard to serve as the basis for accepting or rejecting
the hypothesis. The relative standard commonly used in biological research is p >
0.05. The p value is the probability that the deviation of the observed from that
expected is due to chance alone (no other forces acting). In this case, using p
>0.05, you would expect any deviation to be due to chance alone 5% of the time
or less.
3. Refer to a chi-square distribution table (Table B.2). Using the appropriate
degrees of 'freedom, locate the value closest to your calculated chi-square in the
table. Determine the closestp (probability) value associated with your chi-square
and degrees of freedom. In this case ( 2=2.668), the p value is about 0.10, which
means that there is a 10% probability that any deviation from expected results is
due to chance only. Based on our standard p > 0.05, this is within the range of
acceptable deviation. In terms of your hypothesis for this example, the observed
chi-squareis not significantly different from expected.
The observed numbers are consistent with those expected under Mendel's law.
Step-by-Step Procedure for Testing Your Hypothesis and Calculating Chi-Square
1. State the hypothesis being tested and the predicted results. Gather the data by
conducting the proper experiment (or, if working genetics problems, use the data
provided in the problem).
2. Determine the expected numbers for each observational class. Remember to
use numbers, not percentages. Chi-square should not be calculated if the
expected value in any category is less than 5.
3. Calculate 2 using the formula. Complete all calculations to three significant
digits. Round off your answer to two significant
4. Use the chi-square distribution table to determine significance of the value. a.
Determine degrees of freedom and locate the value in the appropriate column. b.
Locate the value closest to your calculated 2 on that degrees of freedom df row. c.
Move up the column to determine the p value.
5. State your conclusion in terms of your hypothesis. a. If the p value for the
calculated 2 is p > 0.05, accept your hypothesis. 'The deviation is small enough
that chance alone accounts for it.
48
A p value of 0.6, for example, means that there is a 60% probability that any
deviation from expected is due to chance only. This is within the range of
acceptable deviation. b. If the p value for the calculated 2 is p < 0.05, reject your
hypothesis, and conclude that some factor other than chance is operating for the
deviation to be so great. For example, a p value of 0.01 means that there is only a
1% chance that this deviation is due to chance alone.
Therefore, other factors must be involved. The chi-square test will be used to test
for the "goodness to fit" between observed and expected data from several
laboratory investigations in this lab manual. Table B.2 Calculating Chi-Square
Green Yellow Observed (o) 639 241 Expected (e) 660 220 Deviation (o - e) -21 21
Deviation2 (d2) 441 441 d 2 /e 0.668 2 2 = d 2 /e = 2.668 . . 50 Table B.3 Chi-
Square Distribution Degrees of Freedom (df) Probability (p) 0.95 0.90 0.80 0.70
0.50 0.30 0.20 0.10 0.05 0.01 0.001 1 0.004 0.02 0.06 0.15 0.46 1.07 1.64 2.71
3.84 6.64 10.83 2 0.10 0.21 0.45 0.71 1.39 2.41 3.22 4.60 5.99 9.21 13.82 3 0.35
0.58 1.01 1.42 2.37 3.66 4.64 6.25 7.82 11.34 16.27 4 0.71 1.06 1.65 2.20 3.36
4.88 5.99 7.78 9.49 13.28 18.47 5 1.14 1.61 2.34 3.00 4.35 6.06 7.29 9.24 11.07
15.09 20.52 6 1.63 2.20 3.07 3.83 5.35 7.23 8.56 10.64 12.59 16.81 22.46 7 2.17
2.83 3.82 4.67 6.35 8.38 9.80 12.02 14.07 18.48 24.32 8 2.73 3.49 4.59 5.53 7.34
9.52 11.03 13.36 15.51 20.09 26.12 9 3.32 4.17 5.38 6.39 8.34 10.66 12.24 14.68
16.92 21.67 27.88 10 3.94 4.86 6.18 7.27 9.34 11.78 13.44 15.99 18.31 23.21
29.59 Nonsignificant Significant 9.7‘t’ Distribution T-test A t-test is any statistical
hypothesis test in which the test statistic follows a Student's tdistribution under
the null hypothesis.
It can be used to determine if two sets of data are significantly different from
each other. A t-test is most commonly applied when the test statistic would
follow a normal distribution if the value of a scaling term in the test statistic were
known. When the scaling term is unknown and is replaced by an estimate based
on the data, the test statistics (under certain conditions) follow a Student's t
distribution. 51 The‘t’ distribution was developed by W.S.Gossett in the pet name
‘student’.
Therefore, it is known as student’s ’t’ distribution. The properties of ‘t’
distribution are: Most t-test statistics have the form t = Z/s, where Z and s are
functions of the data. Typically, Z is designed to be sensitive to the alternative

49
hypothesis (i.e., its magnitude tends to be larger when the alternative hypothesis
is true), whereas s is a scaling parameter that allows the distribution of t to be
determined.
As an example, in the one-sample t-test , where is the sample mean from a
sample X1,X2,…,Xn, of size n, s is the ratio of sample standard deviation over
population standard deviation, σ is the population standard deviation of the data,
and μ is the population mean.
The assumptions underlying a t-test are that
 X follows a normal distribution with mean μ and variance σ2
 s 2 follows a χ 2 distribution with p degrees of freedom under the null
hypothesis, where p is a positive constant
 Z and s are independent. In a specific type of t-test, these conditions are
consequences of the population being studied, and of the way in which the data
are sampled. For example, in the t-test comparing the means of two independent
samples, the following assumptions should be met:
 Each of the two populations being compared should follow a normal
distribution. This can be tested using a normality test, such as the Shapiro–Wilk or
Kolmogorov– Smirnov test, or it can be assessed graphically using a normal
quantile plot.
 If using Student's original definition of the t-test, the two populations being
compared should have the same variance (testable using F-test, Levene's test,
Bartlett's test, or the Brown–Forsythe test; or assessable graphically using a Q–Q
plot). If the sample sizes in the two groups being compared are equal, Student's
original t-test is highl robust to the presence of unequal variances.[10] Welch's t-
test is insensitive to equality of the variances regardless of whether the sample
sizes are similar.
 The data used to carry out the test should be sampled independently from the
two populations being compared. This is in general not testable from the data,
but if the data are known to be dependently sampled (i.e., if they were sampled
in clusters), then the classical t-tests discussed here may give misleading results.

50
Most two-sample t-tests are robust to all but large deviations from the
assumptions
 To test a specified value
 To test the differences between values (independent sample)
 As a paired ‘t’–test (dependent sample)
 To construct confidence interval for the est Z-test A Z-test is any statistical test
for which the distribution of the test statistic under the null hypothesis can be
approximated by a normal distribution. Because of the central limit theorem,
many test statistics are approximately normally distributed for large samples. For
each significance level, the Z-test has a single critical value (for example, 1.96 for
5% two tailed) which makes it more convenient than the Student's t-test which
has separate critical values for each sample size.
Therefore, many statistical tests can be conveniently performed as approximate
Z-tests if the sample size is large or the population variance known. If the
population variance is unknown (and therefore has to be estimated from the
sample itself) and the sample size is not large (n < 30), the Student's t-test may be
more appropriate.
If T is a statistic that is approximately normally distributed under the null
hypothesis, the next step in performing a Z-test is to estimate the expected value
θ of T under the null hypothesis, and then obtain an estimate s of the standard
deviation of T.
After that the standard score Z = (T − θ) / s is calculated, from which one-tailed
and two-tailed p-values can be calculated as Φ(−Z) (for upper-tailed tests), Φ(Z)
(for lower-tailed tests) and 2Φ(−|Z|) (for two-tailed tests) where Φ is the
standard normal cumulative distribution function.
Use in location testing The term "Z-test" is often used to refer specifically to the
one-sample location test comparing the mean of a set of measurements to a
given constant. If the observed data X1, ..., Xn are
(i) uncorrelated,
(ii) have a common mean μ, and

51
(iii) have a common variance σ2 , then the sample average X has mean μ and
variance σ2 / n.

if our null hypothesis is that the mean value of the population is a given
number μ0, we can use X −μ0 as a test-statistic, rejecting the null
hypothesis if X − μ0 is large. To calculate the standardized statistic Z = (X −
μ0) / s, we need to either know or have an approximate value for σ2 , from
which we can calculate s 2 = σ 2 / n.
In some applications, σ2 is known, but this is uncommon. If the sample size
is moderate or large, we can substitute the sample variance for σ2 , giving
a plug-in test.
The resulting test will not be an exact Z-test since the uncertainty in the
sample variance is not accounted for—however, it will be a good
approximation unless the sample size is small.
A t-test can be used to account for the uncertainty in the sample variance
when the sample size is small and the data are exactly normal.
There is no universal constant at which the sample size is generally
considered large enough to justify use of the plug-in test. Typical rules of
thumb range from 20 to 50 samples.
For larger sample sizes, the t-test procedure gives almost identical p-
values as the Z-test procedure.
Other location tests that can be performed as Z-tests are the two-sample
location test and the paired difference test. Conditions For the Z-test to be
applicable, certain conditions must be
 Nuisance parameters should be known, or estimated with high accuracy
(an example of a nuisance parameter would be the standard deviation in a
one-sample location test).
Z-tests focus on a single parameter, and treat all other unknown
parameters as being fixed at their true values. In practice, due to Slutsky's
theorem, "plugging in" consistent estimates of nuisance parameters can be
justified.
However if the sample size is not large enough for these estimates to be
reasonably accurate, the Z-test may not perform well.

52
 The test statistic should follow a normal distribution. Generally, one
appeals to the central limit theorem to justify assuming that a test statistic
varies normally.
There is a great deal of statistical research on the question of when a test
statistic varies approximately normally. If the variation of the test statistic
is strongly non-normal, a Z-test should not be used. If estimates of
nuisance parameters are plugged in as discussed above, it is important to
use estimates appropriate for the way the data were sampled.
In the special case of Z-tests for the one or two sample location problem,
the usual sample standard deviation is only appropriate if the data were
collected as an independent sample.
In some situations, it is possible to devise a test that properly accounts for
the variation in plug-in estimates of nuisance parameters.
In the case of one and two sample location problems, a t-test does this.
Example Suppose that in a particular geographic region, the mean and
standard deviation of scores on a reading test are 100 points, and 12
points, respectively.
Our interest is in the scores of 55 students in a particular school who
received a mean score of 96. We can ask whether this mean score is
significantly lower than the regional mean—that is, are the students in this
school comparable to a simple random sample of 55 students from the
region as a whole, or are their scores surprisingly low? First calculate the
standard error of the mean:
where is the population standard deviation. Next calculate the z-score,
which is the distance from the sample mean to the population mean in
units of the standard error: In this example, we treat the population mean
and variance as known, which would be appropriate if all students in the
region were tested.
When population parameters are unknown, a t test should be conducted
instead.
The classroom mean score is 96, which is −2.47 standard error units from
the population mean of 100.
Looking up the z-score in a table of the standard normal distribution, we
find that the probability of observing a standard normal value below −2.47
is approximately 0.5 − 0.4932 = 0.0068.
53
This is the one-sided p-value for the null hypothesis that the 55 students
are comparable to a simple random sample from the population of all test-
takers.
The two-sided p-value is approximately 0.014 (twice the one-sided p-
value).
Another way of stating things is that with probability 1 − 0.014 = 0.986, a
simple random sample of 55 students would have a mean test score within
4 units of the population mean.
We could also say that with 98.6% confidence we reject the null hypothesis
that the 55 test takers are comparable to a simple random sample from the
population of test-takers.
The Z-test tells us that the 55 students of interest have an unusually low
mean test score compared to most simple random samples of similar size
from the population of test-takers.
A deficiency of this analysis is that it does not consider whether the effect
size of 4 points is meaningful.
If instead of a classroom, we considered a subregion containing 900
students whose mean score was 99, nearly the same z-score and p-value
would be observed.
This shows that if the sample size is large enough, very small differences
from the null value can be highly statistically significant. See statistical
hypothesis testing for further discussion of this issue. Z-tests other than
location tests Location tests are the most familiar Z-tests.
Another class of Z-tests arises in maximum likelihood estimation of the
parameters in a parametric statistical model.
Maximum likelihood estimates are approximately normal under certain
conditions, and their asymptotic variance can be calculated in terms of the
Fisher information.
The maximum likelihood estimate divided by its standard error can be used
as a test statistic for the null hypothesis that 56 the population value of the
parameter equals zero.
More generally, if is the maximum likelihood estimate of a parameter θ,
and θ0 is the value of θ under the null hypothesis, can be used as a Z-test
statistic. When using a Z-test for maximum likelihood estimates, it is

54
important to be aware that the normal approximation may be poor if the
sample size is not sufficiently large.
Although there is no simple, universal rule stating how large the sample
size must be to use a Z-test, simulation can give a good idea as to whether
a Z-test is appropriate in a given situation.
Z-tests are employed whenever it can be argued that a test statistic
follows a normal distribution under the null hypothesis of interest.
Many non-parametric test statistics, such as U statistics, are approximately
normal for large enough sample sizes, and hence are often performed as Z-
tests. Factor analysis Factor analysis is the method used to reduce a large
number of variables into smaller ones.
Charles Spearman was the first person to use the factor analysis.
This method analyses the correlation among a total set of variables. This is
a technique used to examine the relationship of entire set of
interdependent variables without considering the differences between
dependent and independent variables.
For example, factor analysis is used in a firm to reduce a large number of
factors into smaller groups:
1. Factor No. 1: product (a) Size (b) Colour (c) Weight (d) Design
2. Factor No. 2: Price (a) Cash terms (b) Credit terms (c) Cost of guarantees
3. Factor No. 3: Staff 57 (a) Knowledge (b) Qualification (c) Performance (d)
Availability
4. Factor No. 4: Service (a) Based on documentation (b) Payment options

There are numerous applications of factor analysis in marketing research.

Some of the examples are as follows:
 While doing market segmentation, factor analysis helps in identifying the
groups of the customers.
 In product research, this analysis helps in determining the brand factor
that highly influence consumer buying.
 In pricing research, factor analysis helps in identifying the psychographic
characteristics of the price sensitive consumers. Factor analysis can be
classified in two types:
Exploratory and Confirmatory. Let’s discuss them in detail.

55
 Exploratory factor analysis: The statistical method of exploratory factor
analysis (EFA) is helpful in uncovering the underlying structure of variables
which are relatively large in size. The main objective of this analysis is to
understand the relationship among measured variables.
 Confirmatory factor analysis: Confirmatory factor analysis (CFA) is a
statistical technique used to verify the factor structure of a set of observed
variables. CFA is the next step after EFA to determine the factor structure
of the data.
Multiple Regression Analysis Multiple regression analysis is an extension of
two variable regression analysis. In this analysis, two or more independent
variables are used to estimate the values of a dependent variable, instead
of one independent variable. Objectives of multiple regression analysis are:
 To derive an equation which provides estimates of the dependent
variable from values of the two or more independent variables
 To obtain the measure of the error involved in using the regression
equation as a basis of estimation
 To obtain a measure of the proportion of variance in the dependent
variable accounted for or explained by the independent variables Multiple
regression equation explains the average relationship between the given
variables and the relationship is used to estimate the dependent variable.

Regression equation refers to the equation for estimating a dependent

variable. Estimating dependent variable X1 from the independent variables
X2, X3……, is known as regression equation of X1 on X2, X3……….
Regression equation, when three variables are involved, is given below: X
1.23 = a1.23+ b1.23 X2+ b13.2 X3 where, X1.23 is an estimated value of the
dependent variable X2 and X3 are independent variables. a1.23 =
(Constant) the intercept made by the regression plan. It gives the value of
the dependent variable, when all the independent variables assume a
value equal to zero. b1.23 and b13.2 = partial regression coefficients or net
regression coefficients. b1.23 = measures the amount by which a unit
change in X2 is expected to affect X1 when X3 is held constant.
Application of Multiple Regressions Multiple regressions analysis can be
applied to test the factors such as export elasticity, import elasticity, and

56
structural change (contribution of manufacturing sector towards GDP)
influencing over employment.
Here, employment is a dependent variable.
•Multiple regression analysis is an extension of two variable regression
analysis.
•In this analysis, two or more independent variables are used to estimate
the values of a dependent variable,
instead of one independent variable.
•Objectives of multiple regression analysis are:
To derive an equation which provides estimates of the dependent variable
from values of two or more independent variables
To obtain the measure of the error involved in using the regression
equation as a basis of estimation
To obtain a measure of the proportion of variance in the dependent
variable accounted for or explained by the independent variables.

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)Doctor of Philosophy
(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 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.

57
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.
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.

58
CHAPTER-4
COMPANY
PROFILE

59
CHAPTER-4 COMPANY PROFILE

 Nike has an on-line store where custom shoes may be purchased

 In such a competitive environment Nike steps it up by investing a
large portion of their income into R&D, with the formation of the
Nike Sport Research Laboratory in 1980, and the introduction of the
Advance Product Engineering department; Nike is making sure that
they stay in control of their market share.
These two departments ensure that Nike has new shoe styles and
are constantly developing new products.
 Nike is the world’s no. 1 shoemaker. It designs and sells shoes for a
variety of sports including baseball, golf, cheerleading, volleyball,
tennis and football.
 Nike uses a “Make to Stock” customer order which provides a fast
service to customers from available
 Nike operates Nike Town shoe and sportswear stores, Nike factory
outlets and Nike Women shops. Nike sells its products throughout
US and in more than 180 countries.
 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.
 Nike is a global brand. It is the number one sports brand in the
World. Its famous ‘Swoosh’ is instantly recognizable, and Phil Knight
(Founder and CEO) even has it tattooed on his ankle.
 Weaknesses
 It is a global brand and no.1 shoe maker.
 Nike has the joint venture with Apple’s IPod in continued
innovation.
 It has strong distribution channels.
 It has strong position over its minimal long term debt.
 Has innovative shoe design which enable consumer to design their
own shoe online.

60
 It has diversified products worldwide.
 Has strong marketing campaigns and endorses different products.
 Have different segments as baseball, golf and footwear etc.
 Its sales highly depend on the footwear segment.
 It has violations in history and they provide minimal wage rate to
its Workers.
 Has poor conditions in work places, It is having bad reputation.
 Has higher price compared to its competitors as Adidas.
 Contract manufacturing of shoes to low-wage factories makes Nike
susceptible to laws, and economic
 Product Diversification, with new technology and increased
earnings they should be able to invest even
 Increase their global presence by expanding their services to
countries such as, Chile, Peru, Bolivia, India, Mexico, and South
Africa in an attempt to serve those with the largest populations.
 The key is more advertising, encourage young people to purchase
Nike’s even if they are not sport
 Increase marketing to the female consumer.
 Increase manufacturing of products that the new generation is
interested, specifically boots and sandals.
 Increase competition both domestically and internationally.
 Change in the young consumer preferences to sandals and boots.
 High inflation and unemployment in Asia and Pacific Rim, Latin
America, and Russia may cause a decline
 The fluctuation of foreign currency and interest rate may pose a
threat to earnings.
 Import and export regulations.

5 P’S IN NIKE’S MARKETING MIX PRODUCT: NIKE’s athletic footwear

products are designed primarily for specific athletic use, although a
large percentage of the products are worn for casual or leisure
purposes. They place considerable emphasis 75 on high quality
construction and innovative design for men, women and children.

61
Running, basketball, children’s, cross training and women’s shoes are
currently our top-selling product categories and expect them to
continue to lead in product sales in the near future.
However, they also market shoes designed for outdoor activities,
tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling,
cheerleading, aquatic activities, hiking, and other athletic and
recreational uses.
They sell active sports apparel covering most of the above
categories, athletically inspired lifestyle apparel, as well as athletic
bags and accessory items.
NIKE apparel and accessories are designed to complement their
athletic footwear products, feature the same trademarks and are
sold through the same marketing and distribution channels.
Athlete endorsements and sports marketing works well for many of
Nike’s categories, it is not appropriate for all of them. For example,
the fitness segment, which includes joggers, hikers and aerobics, is
less focused on top performance, and subsequently sports heroes
are not as heavily relied upon as endorsers of the shoes.
Furthermore, the Nike brand personality has to speak to both men
and women, who differ in their reasons for participating in fitness
activities.
Men see exercise as a way to get stronger or live longer, while
women have broader objectives – they want to get fit, but sports
and fitness also means empowerment and self-esteem.
Nike has also experienced unique challenges in international
markets.
Global stars, such as Michael Jordan and Tiger Woods are used to
convey Nike’s heritage of authentic athletic performance, while local
endorsers are used to connect with the relevant local market
segments.
This is a continuing risk. Failure to timely and adequately respond
could have a material adverse affect on our sales and profitability.

62
INTEGRATED MARKRTING COMMUNICATION

Nike’s ability to coordinate integrated marketing communication

that really connects with customers is outstanding. For example, the
“Swoosh” is so familiar that the name no longer needs to appear
along with it.
The company Web site is updated constantly, announcing new
products and offering more sales opportunities for the company.
With features such as three-dimensional product views, a
gift/product finder, Nike customization tools and the Nike.
Today that number has jumped to one in five and Nike is at the
forefront in sponsorship and involvement in supporting women in
sports.

NIKE’S ONLINE BUSINESS (Branding across an online network)

CHALLENGE
Target different online audiences around the world, with different
products, while maintaining core brand identity in a network of sites.
Extend the brand experience from a 30 second TV-spot to something
that's much deeper.

STRENGTH
Nike has a tradition of strong graphic identity, enormous brand
awareness. They are the undisputed heavyweight champions of
branding. Their print and TV ads are legendary for their
sophistication, wit and execution. In a sense they strive for
something close to perfection in crafting a message that's irresistible.

A NETWORK OF TARGETED MICRO SITES Unlike its rival companies,

Nike presents itself to many different audiences in different ways.
It's a marketing strategy born from a sophisticated understanding of

63
how people respond to images of lifestyle. Whereas most companies
develop products for an existing market,.
Using similar structure, color, grid and logo treatment, Nike has
created a cohesive identity across the network.
Nike takes our ideas of beauty, grace, speed or sex and tells them
back to us in their own way. But if Nike were to simply plaster these
symbols on a web page, they would remain merely abstractions and
pretty boring.
Nike's real design skill is making these ideas represent some greater
concept, which is powered by the emotional and intellectual stock
we're willing to bring to it.
How do they do that?
By using design, symbolism and coherence to stir up the most
seductive idea to date- that there's a hero within you.

THE VALUE CHAIN:

The value chain of Nike starts with manufacturing of its products in
locations where it could take the advantage of low manufacturing
cost.
After that value is added at every stage from its manufacturing to its
delivery.
Thus, the amount of value delivered to the market place is
dependent on the

SEGMENTATION
Nike has segmented its market on the basis of the following
variables:
• Demographics Age :- Youth 18-34 Older
Gender :- Male Female
• Psychographics: lifestyle Athletic Outdoor Nike has designed and
marketed athletic shoes for each different sport, often further
segmenting with specialized models within each sport
(e.g., "Air Jordan" basketball shoes, and additional basketball models
called "Force," represented by Charles Barkley and David Robinson,
and "Flight," represented by Scottie Pippin).
64
TARGETING
Initially, Nike focused more on the male consumer and was
dedicated to serious athletes.
But, with the growing popularity of female sports apparel and
equipment segment , it has widen its target market.
It has moved into new sports areas away from the running heritage.
As a result of which, it’s target audience has shifted from more
masculine towards female and even third agers.

POSITIONING
Nike’s Punch line “Just do it” has enabled the company to create the
image of an aggressive, action-oriented company.
Amateur as well as professional athletes perceive Nike as producing
high-quality shoes that help athletes perform to their maximum
potential.
They were firmly rooted as performance shoes with innovative
designs and technology.
Nike’s brand narrative prescribes the consumer to get out and
exercise, “Just Do it”.
Buying Nike product is almost an after thought.

ADVERTISING STRATEGY:
Nike traditionally uses a highly visual format for its advertisements.
These images capitalize on consumer emotion and attempt to link
personal value to the wide array of Nike products. Advertising is
never just about Nike, the brand.
It is carefully constructed to draw in consumers. A number of other
famous athletes have elicited a tremendous response from
customers. Including tennis players John McEnore and Andre Agassi,
basketball player Nolan Ryan, football’s Deion Sanders, track stars
Carl Lewis and Alberto Salazar, and basketball players Charle Barkley
and Scottie Pippen. The young Tiger Woods has a $100 million
contract with 86 Nike.

65
DISTRIBUTION CHANNEL
Before 1980s, Nike distribution strategy of sports footwear &
clothing in Europe - work through distributors & select local partners
in each country.
In 1980s, due to market growth, Nike decided to buy up its
distributors & converted them into wholly owned subsidiaries But
each distributor operated autonomously, each local warehouse had
its own logistics infrastructure & its own sales force, ordered Product
individually & controlled their own stock.
However, most of them saw the advantages once Nike explained to
the European retailers why they were using Futures and how it
would guarantee availability.
Germany was the exception, where it was a battle both against an
entrenched retailer base and sometimes against Nike’s own staff,
who didn’t believe in the concept themselves. exception being older
women, where Reebok is on top).
Nike considers Adidas its strongest competitor, but Reebok has also
had some placement success with products such as the DMX shoe.
Fila looks to be fading, although Hilfiger and Polo are new entrants
focused on the fashion side.
Nike’s goal is to bring Indian consumption to the same level as the
other Asian countries.

66
CHAPTER-5
DATA ANALYSIS
AND
INTERPRETATION

67
CHAPTER-5
DATA ANALYSIS AND INTERPRETATION
Do you like Nike footwear products?
Why or Why not?
(a) Yes
(b) No The following results were observed:
a) 88.4% people said Yes
b) 11.6% people said No INTERPRETATION Therefore, it is observed
that most of the respondents like NIKE products
2. Did you buyed nike footwear products? (a) Yes (b) No The
following results were observed: (a) 92% people said Yes (b) 8%
people said

No INTERPRETATION Therefore, it is observed that most respondents

have buyed Nike footwear 97 3.
Why do you buy nike footwear product? (a) High quality (b) Brand
+Trendy pursuer (c) Other The following results were observed: (a)
36% people said High Quality (b) 62% people said Brand + Trendy
pursuer (c) 2% people said others

INTERPRETATION Therefore, it is observed that most People buy

Nike footwear because Of its Brand and Trendy looks 4. What type of
sports do you like? 98 (a) Soccer (b) Basketball (c) Running (d) Other
The following results were observed: a) 28% people said Soccer b)
42% people said Basketball c) 17% people said Running d) 13%
people said others

INTERPRETATION Therefore, it is observed that Basketball is the

most likely sport.

INTERPRETATION Therefore, it is observed that most people think

Nike footwear is Expensive. 8. Where is the best place to reach you
with Nike advertisement? (a) Television 102 (b) Newspaper (c)
Magazine (d) Internet The following results were observed: a) 68%
68
people said Footwear b) 8% people said Clothes c) 19% people said
Accessories d) 5% people said Others

INTERPRETATION Therefore, it is observed that Television is the most

reachable Medium -15 times The following results were observed: a)
56% people said 0 Times b) 34% people said 1-5 Times c) 6% people
said 6-10 Times d) 4% people said 11-15 Times

INTERPRETATION Therefore, it is observed that people haven’t

watched Nike Advertisment in a month.

69
CHAPTER-6
RESULT &
DISCUSSION

70
CHAPTER-6

RESULT & DISCUSSION

Nike has been creative since the start. It has been pushing the
technological boundaries of innovation to offer its customers new
products and also differentiate itself from its competitors.
Somewhere in its evolution, Nike also realised the importance of hi-
tech gadgets in day-today lives.
Nike considers Adidas its strongest competitor, but Reebok has also
had some placement success with products such as the DMX shoe.
Fila looks to be fading, although Hilfiger and Polo are new entrants
focused on the fashion side.
Nike’s goal is to bring Indian consumption to the same level as the
other Asian countries.

71
CHAPTER-7
SUGGESTION &
RECOMMENDATIO
AND SUGGESTION

72
CHAPTER-7 SUGGESTION & RECOMMENDATION SUGGESTION

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 106 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. Consumers are also very specific in their frequency
preferences, with news and weather most often preferred daily,
special offers from retailers, online merchants and 108 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 permissionbased email as a concern in2006.
Clearly marketers need to test for optimal frequency and solicit
customer preferences.
73
CHAPTER 8
LIMITATIONS AND
SCOPE OF FUTURE
RESEARCH

74
CHAPTER 8

LIMITATIONS AND SCOPE OF FUTURE RESEARCH

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 111 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.

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.
75
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.
Among the different segments in the market − economic, popular or
premium
which are more prone to Sales Promotions and what effects they
have on Consumer Based Brand Equity will be another interesting
area of research.
Another interesting dimension will be to find out the differential
effect of Sales Promotions between Indian and foreign brands
(country-of-origin effect) as well as national vs. private labels on
Consumer Based Brand Equity.

76
CHAPTER 9
CONCLUTIO

77
CHAPTER 9

CONCLUTION

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.
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 at e-commerce is a key area for economic
development in the 21st century.
• Was determined the relevance of the e-shop, selling different kind
of shoes.
• Were considered the pros and cons of e-commerce.
78
• Were studied the competitors to get the idea what are their strong
and weak point
• Was decided the design of the website.
• Was decided the ways of promotion. According to estimates, it was
determined that the project should be recouped through 11,5
months.
The aim of this project was to develop competitive marketing plan of
opening the e-shop of sport shoes and boots, so the web-page is one
of the most important things it should be noted that in the 117
developed of LifeShoes store interface is successfully combined with
either functionality or ease usage.
Developed the most convenient and accessible work potential client,
accessible and understandable dialogs also as different offers, via
discounts, sales, gifts - to obtain even more customers.

79
CHAPTER 10

80
BIBLIOGRAPHY

Books
PHILIP KOTLER, MARKETING MANAGEMENT, NEW MILLENNIUM EDITION 2000

V.S RAMASWAMY AND S. NAMAKUMARI MARKETING MANAGEMENT, SECOND

EDITION

Web Sites –
www.nike.com

www.webcrawler.com

www.google.com

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