Professional Documents
Culture Documents
hereby declare that the project entitled “Consumer Behaviour Branded V/s Non Branded
Shoes” is an original work and the same has not been submitted to any other institute for the
award of any other degree. The project report was presented to the head of project &the feasible
Signature
Pardeep
University Roll No. : 642
Counter Signed
Dr. Sanjay Nandal
Assistant Professor
IMSAR
ACKNOWLEDGEMENT
There is always a sense of gratitude which one express for others for their help and supervision
in achieving the goals. We too express my deep gratitude to each and everyone who has been
helpful to us in completing the project report successfully.
We would like to thank almighty God for blessing showered on us during the completion of
Dissertation Report.
We give our regards and sincere thanks to Dr. Sanjay Nandal who has devoted her precious
time in guiding us & helping us complete it within time.
We feel self-short of words to thanks our parents and friends who had directly or indirectly
instrumental in the completion of the project. We are indebted to all respondents for their time
passion during the long conversations.
Pardeep
PREFACE
The project study on CONSUMER BEHAVIOUR REGARDING VARIOUS
BRANDED SHOES has been conducted to observe the preferences of
consumers. This system of education is highly appreciated as it provides
the students with an opportunity to acquaint them with the outside world.
The practical work helps the students to view the real business world
closely, which in turn widely influences their conception and perception.
EXECUTIVE
SUMMARY
This project takes a look in various kinds of Merchandising activities,
market share of different shoes and various sales promotion schemes,
which are followed in the shoe industry. The three major players i.e.
Reebok, Nike and Adidas dominate the sports shoe industry in India. India
is one of few battlegrounds in the world where there is neck-to-neck
competition between the three. The companies claim to be in number one
sport coating the data produced by two different marketing research
companies.
In the 1980s, Adidas sneakers became popular amongst teenagers and
young men. The Adidas sneakers were popularized by the Run DMC song
“My Adidas” and became a huge fashion trend. The Tapie affair the history
of the company as presented by its official web site is incomplete, perhaps
because it is indirectly linked to financial scandals. After a period of serious
trouble. The death of Adolf Dassler’s son Horst Dassler in 1987, the
company was bought in 1990 by Bernard Tapie, for 1.6 billion French
francs ($320million), which Tapie borrowed. Tapie was at the time a
famous specialist of rescuing bankrupt companies, a business on which he
built his fortune.
Reebok is the world’s third- largest maker of sneakers, athletic shoes and
sport apparel. Goods are sold under the brands Reebok, Rockport and
Greg Norman Collection. Reebok is also the official outfitter of the NFL and
has an exclusive deal to supply NBA jerseys beginning the season
Reebok announced in July it will merge with German Sporting apparel
company adidas-saloman in a deal valued at @3.8 billion. The merger is
expected to be completed by the first half of 2008 and will create the
second-largest sporting goods company behind Nike with @11billion in
revenues.
Adidas will maintain its corporate headquarter in Germany and its North
American headquarters in Portland, OR Paul Fireman will remain as chief
executive officer of the Reebok international ltd. And will continue to lead
the Reebok team. Reebok will continue to operate under its name and will
retain its headquarters in Canton, MA.
In fiscal 2008, Reebok had net income of @192.4million and sales of
@3.7billion.
The Action group is one of the India's leading business conglomerates. The
group commenced its operations as a source of footwear and its
components in domestic and export markets, gradually moving its core
other diversified fields such as: (API) Chemicals and Plasticizers,
(MICROTEK ) Computer Monitors and Peripherals, Power Back
Up/Inverters, (OKAYA) Batteries, (SUN CITY) Housing Projects and (SRI
BALAJI ACTION MEDICAL INSTITUTE) Health Care.
RESEARCH
OBJECTIVES
Objective
The research study tends to follow and achieve specific objectives.
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research
problem, it not only takes the research methods but also consider the logic
behind the methods. The study of research methodology for developing the
project gives us the necessary training in gathering materials and arranging
them, participation in the field work when required, and provides training in
techniques for the collection of data appropriate to particular problems.
SAMPLING PLAN:-
SAMPLE SIZE:- 50
SAMPLE
While deciding about the sample of research, it is required from the
b) Source of Data: Data required for the study was collected through
primary sources i.e. market survey.
INSTRUMENTS USED
Primary data collected through sample survey from the selected elements
in malls and super markets. So for this purpose I have most popular tool of
primary data collection through direct communication with respondents.
The tools I used are questionnaire.
RESEARCH INSTRUMENTS:
QUESTIONNAIRE DESIGN:
As the questionnaire is self administered one, the survey is kept simple and
user friendly. Words used in questionnaire are readily understandable to all
respondent.
I have made the questionnaire in which questions are according to the
research and these are convenience for the respondent.
CHAPTER-4
LIMITATIONS
Some people were not willing to respond and few of them who
responded were in hurry hence the active participation was lacking.
Due to which I faced difficulties in collecting information’s regarding
our questionnaire.
Another problem which I face was that people were hesitating to give
information about their views freely.
CHAPTER-5
COMPANY
PROFILE
Adidas
INTRODUCTION
Adidas was formed by German sports apparel by the founder Adi Dassler
during the 1920’s. “For over 80 years, Adidas has been part of the world of
sports on every level, delivering state-of-the-art sports
footwear, apparel and accessories. Today, Adidas is a
global leader not only in the shoe industry, but also in
the sporting goods industry. Shoes from the Adidas
are available in virtually every country of the world. .
Besides sports footwear, the company also produces
other products such as bags, shirts, watches,
eyewear and other sports and clothing-related
goods. The company is the largest sportswear
manufacturer in Europe and the second biggest sportswear manufacturer
in the world, after its American rival Nike.
The company’s clothing and shoe design typically involve three parallel
stripes of the same color and the same motive is incorporated into Adidas
’official logos.
The strength of Adidas was its product innovation. Adi Dassler registered
more than seven hundred patents. Adidas began selling its shoes in the
United States after 1968 and in few years the company dominated the
American market. The most important marketing breakthrough was the
active promotion of global sporting events, especially the Olympics. The
connection of Adidas to the Olympics has a rich heritage. At the 1972
Olympic game in Munich, every official wore Adidas.
ADIDAS IN INDIA
The brand value of Adidas Ag, the leading leisure wear, sports footwear
and equipment producer across the globe is currently almost 2748 million
dollars.
The company's brand name is Adidas and it is displayed with a trefoil logo.
This logo, a very popular one, is a signature of Adidas' brand. It had been
launched in 1972.
The new Adidas logo, three stripes running across its several products,
was introduced in 1991.
In 2006, Adidas acquired the Reebok brand for 3.8 million dollars.
ADIDAS
Type Public
Founded 1949
Industry Textile
Products Footwear
Accessories
REEBOK
INTODUCTION
Reebok is the world’s third-largest maker of sneakers, athletic shoes
and sports apparels. Good are sold under the brands
Reebok, Rockport, and Greg Norman Collection. Reebok
is also the official Outfitter of the NFL and has an exclusive deal to supply
NBA jerseys beginning this season.
Adidas will maintain its corporate headquarters in Germany and its North
American headquarters in Portland, OR. Paul Fireman will remain as Chief
Executive officer of Reebok international Ltd. And will continue to operate
under its name and will retain its headquarters in canton, MA.
In fiscal 2004, Reebok had net income of $192.4 million and sales of $3.7
billion.
HISTORY:
Reebok’s origins go back to 1895 when Joseph
William Foster made running shoes with spikes in them. He formed a
company called J.W.Foster and sons which made shoes for athletes in the
1924 summer Olympics.
In 1958, two of the founder’s grandsons started a companion company that
came to be known as Reebok, named for an African gazelle.
In 1979, Paul Fireman, a partner in an outdoor sporting goods
distributorship, spotted Reebok shoes at an international trade show. He
negotiated for the North American distribution license and introduced three
running shoes in the U.S that year. At $60, they were the most expensive
running shoes on the market.
By 1981, Reebok’s sales exceed @1.5 million, but a dramatic was planned
for the next year. In 1982, Reebok introduced the first athletic shoe
designed especially for the women; a shoe for a new fitness exercise called
aerobic dance. The shoe was called the freestyle, and with it Reebok
anticipated and encouraged three major trends that transformed the athletic
footwear industry: the aerobic exercise movement, the influx of women into
sports and exercise and the acceptance of well-designed athletic footwear
by adults for street and casual wear.
Reebok went public in 1985.
The Chairman and CEO of Reebok was Paul Fireman. He was the one to
introduce the Freestyle in 1980 he was the founder and innovator of
Reebok. He left his position in 2006 and sold Reebok to Adidas for $3.8
billion. Paul Harrington took his place in April for two years. In March 2008
Uli Becker became CEO of Reebok. He is now responsible for Reebok
brands business around the world, and he reports to the chairman and
CEO of the Adidas group. The top 3 CEO connections are Mr. John Warren
who is the chief financial officer and general manager of sports licensed
division, Mr. Terry R. Pillow senior vice president, and Mr. Rick Paterno
senior Vice President. The top five shareholders are Bardwil Industries Inc,
Dr. Martens Airwair USA, llc, Native Intimates Ltd., Welspun USA, Ins.,
Alpha Mills Corporation. Its headquarters are in Canton, Massachusetts,
U.S.A. its regional offices are in Amsterdam, Montreal, Hong Kong, and
Mexico City.
REEBOK'S VISION
REEBOK’S MISSION
At Reebok, we see the world a little differently and throughout our history
have made our mark when we’ve had the courage to challenge convention.
Reebok creates products and marketing programs that reflect the brand’s
unlimited creative potential.
REEBOK'S POSITIONING
Celebrate Individuality in Sport and Life
Reebok understands that people are, above all, unique. Reebok’s
positioning reflects this; celebrating the distinct qualities that make people
who they are - their unique points of view, their individual style and their
remarkable talents and accomplishments. Reebok celebrates their
individuality, their authenticity and the courage it takes to forge their own
path to greatness. While some may call them crazy or eccentric, Reebok
calls them visionary and original.
REEBOK'S PURPOSE
To Empower Global Youth to Fulfill their Potential
Commitment to Corporate Responsibility is an important legacy and
hallmark of the Reebok brand. For two decades, Human Rights, through
the Reebok Human Rights program, were the primary focus of this effort.
Reebok has expanded on what had been built and created a Global
Corporate Citizenship platform with a purpose for the brand that will help
underprivileged, underserved youth around the world fulfill their potential
and live healthy, active lives.
REEBOK'S BRAND TERRITORY
Having Fun Staying in Shape
Having Fun Staying in Shape comes to life through a fun, bold, provocative
manner expressed through fresh, eye catching imagery signed off with a
unique 'Reeword.' The tone and manner allows the consumer to look at
sport and lifestyle through our lens of 'Ree.'
d) For the 2008–09 season, Reebok created the Reebok Edge 2 uniform
system, for National Hockey League's players. The league adopted the
jersey and now all teams sport the new style for both their home and away
jerseys.
INTODUCTION
Nike is a major publicly traded sportswear and equipment supplier based in
the United States. The company is headquartered near Beaverton, Oregon,
which is part of the Portland metropolitan area. It is the world's leading
supplier of athletic and apparel and a major manufacturer of sports
equipment with revenue in excess of US$18.6 billion in its fiscal year 2008
(ending May 31, 2008). As of 2008, it employed more than 30,000 people
worldwide. Nike and Precision Castparts are the only Fortune
500companies headquartered in the state of Oregon, according to The
Oregonian.
The company's profits grew quickly, and in 1967, BRS opened its first retail
store, located on Pico Boulevard in Santa Monica, California. By 1971, the
relationship between BRS and Onitsuka Tiger was nearing an end. BRS
prepared to launch its own line of footwear, which would bear the newly
designed Swoosh by Carolyn Davidson. The Swoosh was first used by
Nike on June 18, 1971, and was registered with the U.S. Patent and
Trademark Office on January 22, 1974.
The first shoe sold to the public to carry this design was a soccer shoe
named Nike, which was released in the summer of 1971. In February 1972,
BRS introduced its first line of Nike shoes, with the name Nike derived from
the Greek goddess of victory. In 1978, BRS, Inc. officially renamed itself
to Nike, Inc.. Beginning with Ilie Năstase, the first professional athlete to
sign with BRS/Nike, the sponsorship of athletes became a key marketing
tool for the rapidly growing company.
PRODUCT
Nike produces a wide range of sports equipment. Their first products were
track running shoes. They currently also make shoes, jerseys,
shorts, baselayers etc. for a wide range of sports including track and
field, baseball, ice hockey, tennis, association
football (soccer), lacrosse,basketball and cricket. Nike Air Max is a line of
shoes first released by Nike, Inc. in 1987. The most recent additions to their
line are the Nike 6.0, Nike NYX, and Nike SB shoes, designed
for skateboarding. Nike has recently introduced cricket shoes, called Air
Zoom Yorker, designed to be 30% lighter than their competitors'. In 2008,
Nike introduced the Air Jordan XX3, a high-performance basketball shoe
designed with the environment in mind.
Nike has contracted with more than 700 shops around the world and has
offices located in 45 countries outside the United States Most of the
factories are located in Asia, including Indonesia, China, Taiwan, India,
Thailand, Vietnam, Pakistan, Philippines, and Malaysia Nike is hesitant to
disclose information about the contract companies it works with. However,
due to harsh criticism from some organizations like CorpWatch, Nike has
disclosed information about its contract factories in its Corporate
Governance Report.
Sports equipment
Accessories
Website : Nike.com
ACTION
PROFILE OF THE ORGANISATION:
“A relentless race against time.The burning passion to win..A strong desire to set the
trends...
No wonder
, life is all Action...."
What one needs is a partner that's always on the move, that tracks your
Every move, just right and smartly too. And that's exactly the inspiration
behind our trendy footwear collection ranging from performance sport
shoes to semi-formal and formal footwear for men, women, teenagers and
kids. Ultimate in design, comfort, and fit. Action shoes not only look good
but also are good for your feet. Each Action product is the manifestationof
our high standards of workmanship, access to latest technology. That's
how Action issynonymous with maximum quality and performance.... and of
course that essential look.So gets into Action. And feel free to walk on the
rough roads of life. Surely you'll be thewinner .
The Action group is one of the India's leading business conglomerates. The
groupcommenced its operations as a source of footwear and its
components in domestic and export markets, gradually moving its core
other diversified fields such as: (API) Chemicals and Plasticizers,
(MICROTEK ) Computer Monitors and Peripherals, Power Back
Up/Inverters, (OKAYA) Batteries, (SUN CITY) Housing Projects and (SRI
BALAJI ACTION MEDICAL INSTITUTE) Health Care.
There are different individual companies under a common umbrella, each
dedicated to a specific line of product manufacturing, procuring or other
particular business activities.
Today the group strategy is to be competitive and to be a leader in the
quality of goods and services provided
Hardly surprising, Action has carved a special niche in the Indian footwear
market and in the hearts of millions of its consumers throughout
the country.
COMPANY’S LOCATION:
Action is headquartered in Delhi, supported by multiple manufacturing and
development units in rest of the states like - Haryana, Himachal Pradesh
and Daman etc. A number of its executives are based in customer
geographies with the express purpose of creating and nurturing channel
partners as well as customers relationship.
STRATEGIC INTENT
VISION
To nurture a financially strong, growth oriented group through leadership
and innovation and to widen future options by entering newly emerging
industries where the potential seems enormous. We as a group shall
continue to seek opportunities where we can leverage our resources.
MISSION
At Action group our mission is to work together, respecting each other, our
skills and knowledge to:-
VALUES
How we accomplish our mission is as important as the mission itself.
Fundamental to the success for the company are these basic values.
Teamwork
Learning and Innovation
MARKET POSITIONING
To complement our philosophy of catering to every walk of life, our
powerful distribution network is mushroomed far and wide.
The distribution network comprising of DISTRIBUTORS, WHOLESALERS,
RETAILERS AND EBO's throughout the country, ensures that the customer
wherever located is served efficiently. We have network of more
than50,000 retail outlets all over India to sell our footwear, which is being sold
through more than500 distributors appointed by the company.
CHAPTER-6
DATA ANALYSIS
AND
INTERPRETATION
AGE
AGE OF RESPONDENT
54%
%OF RESPONDENT
52%
50%
54%
48%
15-25
46%
46%
44% 15-25
42%
15-25 26-35
AGE
EDUCATION LEVEL
40%
35%
30%
% OF RESPONDENT
25%
20% 38%
15% 32%
Series 3
10% 20%
5% 10%
0%
U. GRADUATE GRADUATE POST GRADUATE ANY OTHER
EDUCATION LEVEL
TYPE OF FAMILY
54%
%OF RESPONDENT
52%
50%
54%
48%
Colu...
46%
joint
46% NU-
44% CLEAR
42%
NUCLEAR JOINT
TYPE OF FAMILY
MARITAL STATUS
70%
60%
% OF RESPONDENT
62%
50%
40%
38%
30%
Series 3
20%
10%
MARRIED
0%
MARRIED UNMARRIED
MARITAL STATUS
For household and individual income is the sum of all the wages, salaries,
profits, interest’s payments, rents and other forms of earning received in a
given period of time?
FAMILY INCOME
% OF RESPONDENT
30%
25%
20%
30%
15% 24% 26%
20% Column1
10%
5%
0%
5000-10000 10000- 15000- 20&ABOVE
15000 20000
INCOME LEVEL
Type of shoe a customer wants to wear depends upon his choice and
profession.
8%
FORMAL
24% 40%
SPORTS
CASUAL
ANY
OYHER
28%
present
80% consumers of branded
70% shoes
60%
%of respondents
50%
40%
68%
30%
20%
10% 20%
12%
0%
yes no indifferent
Responses
A consumer can buy any product only when he or she aware about the
availability of that product in the market.
24%
60% NIKE
62%
ACTION
ADIDAS
48%
76% REEBOK
ANY OTHER
30%
20% 38%
22% 26% % OF RESPONDENT
10%
10%
0% 4%
NIKE ACTION ADIDAS REEBOK ANY
OTHER
Name of brand
45%
40% purchasing place
% of respondent
35%
30%
25%
20% 40%
34%
15%
10% 18%
5% 8%
0%
D. STORE O.SHOWROOM EX. SHOWROOM ANY OTHER
place
Advertising media
AD-
E.SHOW VER-
ROOM TISE-
18% MENT
26%
SALES-
PERSON
38%
FRIENDS
18%
60%
50%
40% 72%
30%
20% 28%
10%
0%
YES NO
Responses
EFFECT OF PRICE
Price may be defined as money consideration asked for or offered or
exchanged for a specified unit of a good or service. Prices are generally
determined by market conditions.
Effect of price
80%
70% yes
%of respondents
60%
50% no
78%
40%
30%
20%
10% 22%
0%
YES
NO
Responses
REPURCHASE PERIOD
Purchasing decision of consumer depends upon the income level of the
consumer.
35%
30%
25%
20%
36%
15% 28% Column1
24% Column2
10%
5% 8%
4%
0%
Period
3.5
Factors considering while purchasing
3 3
2.9
2.6
2.5
2.38 2.38
weighted average
2.1
2
1.5
Series 1
1
0.5
0
PRICE QUALITY SIZE DESIGN COLOR DURABILITY
Factors
10
weighted average
6
WEIGHTED AVERAGE
4 4.12 4.14 4.04 4.34 4.14
3.64
2
0
E E Y E RT TY
IC AG LIT SIZ FO ILI
PR IM A B
D QU M RA
AN CO DU
R
B Factors
BRAND LOYALTY
Brand loyalty refers to that a customer being permanent consumer of brand
and he never switch over to other brand.
BRAND LOYALTY
42% YES
NO
58%
CHAPTER-7
SUGGESTIONS
AND
CONCLUSION
RESEARCH FINDING:
After assessing the overall market scenarios what came in picture was as
follows:
Consumer reaction suggests that Adidas is the marker leader among
all its close counterparts in the sport shoes and apparel segments.
NIKE is chasing its position most aggressively so now it requires
maintaining its position with new stuff.
ADIDAS has been major competitor for NIKE and REEBOK.
60% Customers are still pro NIKE believer.
The new stuff of the ADIDAS is attracting the consumers more which
might lead ADIDAS at the top spot in the pack in coming financial
year.
Consumers are not showing that kind of craze in ACTION for past
few years.
Probably it could be because of the aggressive attention snatched by
brands like NIKE and ADIDAS especially in India.
Celebrities also affect the sale of brand .ADIDAS shoes promoted by
David Beckham.
72% respondents take their buying decision after considering the
advertisement of brand.
Most of respondents prefer to purchase shoes from exclusive
showrooms.
Businessman, serviceman and professionals prefer to wear formal
shoes because of status and students like to wear only sports and
casual branded shoes.
SUGGESTIONS:
Department stores are the prime sales and marketing channel for
branded shoes. In addition, store decorations and product displays
should be designed to create a strong first impression.
Conclusion
CHAPTER-8
ANNEXURE
QUESTIONNAIRE
PERSONAL PROFILE
I. NAME :
II. AGE :
III. ADDRESS :
IV. TELEPHONE :
V. OCCUPATION :
VI. EDUCATION
Any other
10000-15000
15000-20000
Formal Sports
Casual Any Other
Indifferent
Nike Adidas
Action Reebok
Any Other
Nike Adidas
Action Reebok
Any Other
Price
Quality
Size
Design
Color
Durability
Availability
Brand image
Special offers
Yes No
Brand image
Quality
Size
Comfort
Durability
Any Other
Yes No
Indifferent
12. Would you like to buy another brand if all the attributes
Yes No
Chapter-9
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS:
INTERNET:
www.google.com
www.wlkipedia.com
www.paradise.com
NEWSPAPER:
Economic times