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EXECUTIVE SUMMARY

Nike Shoes has been chosen as the product of this project, for choosing Nike Shoes, it's been the
world‘s leading innovator in athletic footwear and has the most important impact. Nike Inc.‘s
confident mission desires to bring inspiration and innovation to every athlete in the world; by the
means of athletes it accepts everybody who has a body. Nike's self-confident mission and
innovative vision has already inspired us and we wish to become a part of it.

By being inspired by Nike Inc.‘s mission statement, we know that everybody loves shoes whether
they are sportsmen/women or not. The vital question is which brand, and why?

Study of Market:

In this project I have studied on how we segment the market, and which ones our target markets
are; what our marketing and positioning strategy are; what consumer behaviors we observe; Nike
Shoes‘ product, price, place and promotion analysis, SWOT analysis, advertisement analysis;
market information and consumer research; and the new strategy recommendations.

Identifying the factor that keeps Nike in the top of the market. Determine the reason why customers
see Nike has the best in the market. Collect data from customers and retailers that would help
expand Nike market. Determine some ways of improvement and innovation of products.
Determine if there are any products that customers would want Nike to carry. Analyze the overall
market, strength, weakness, opportunities and threats (SWOT).

Research:

30 percent market share worldwide. World‘s largest seller of athletic footwear, athletic apparel, and
other athletic gears in the world. The people who love to play sports are the main target of Nike
Company (the target customer segment of Nike is the customers that are able to pay relatively more
for more performance and quality).

We have also tried to ascertain why customers buy these products, how they choose, and what
factors matter most when making their decisions.

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Recommendation for improvement:
Indeed, Nike Inc. does not have its own factories; the production is held through bids especially
with the far 696 east countries. This reduces its production cost, however, the quality either. Nike‘s
owning its own factories would be better in terms of maintaining high product quality.

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 TABLE OF CONTENTS

Sr. No. Name of the Topic Page No.

Executive Summary
Chapter 1- Introduction to Study
1.1 Introduction
1.2 Objective of the Study
1.3 Scope of the Study
1.4 Limitation of the Study
Chapter 2- Company Profile
2.1 Company Background
2.2 Product Profile
2.3 Integrated Marketing Communication
2.4 Marketing Strategies
2.5 Industry Analysis
2.6 SWOT Analysis of Nike
2.7 4P‘s in Nike‘s Marketing Mix
Chapter 3- Literature Review
Chapter 4- Research Methodology
4.1 Concept of Research Methodology
4.2 Research Objectives
4.3 Types of Research
4.4 Research Hypotheses
4.5 Questionnaire
4.6 Statistical Tools & Techniques
Chapter 5- Analysis & Interpretation of Data
Chapter 6- Conclusion
Chapter 7- Suggestions and Recommendation
Chapter 8- Bibliography

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 CHAPTER- 1

INTRODUCTION TO STUDY

Philip Kotler is considered as the ―Father of Modern Marketing‖ and provides us

with important lessons that can be applied to the digital strategy. As Philip Kotler
explains in his
book Marketing Management, ―Marketing is an administrative and social
process through which individuals and groups obtain what they need and desire
by the generation, offering and exchange of valuable products with their equals‖.

According to Philip Kotler segmentation is acknowledging that you can‘t serve

all clients with the same level of satisfaction.

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 no.1 sports shoe brand in India.

Introduction:

A marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. A marketing strategy should be centered on the
key concept that customer satisfaction is the main goal. Fulfillment of wants of the
prospects is one the important goals of marketing activities. A prospective buyer is
known as a prospect.

Since the late 1980s, Business School marketing professor Itamar Simonson has
looked for ways to understand how consumers make choices. Much of his work

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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. 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.

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 Objective of Study:

To study the tastes, preferences and buying behavior of consumers in case of

footwear of Nike. To recommend strategies to Nike to increase sales.

The main objective is 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. To meet the demand and requirements of the consumers.
To apply continuous marketing strategy to broaden its product range.

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 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
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.

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 Limitations of the study:

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

COMPANY PROFILE

Nike, Inc. is an American multinational corporation that is engaged in the design,

development, manufacturing and worldwide marketing and sales of footwear, apparel,
equipment, accessories and services. The company is headquartered near Beaverton,
Oregon, in the Portland metropolitan area. It is one of the world's largest suppliers of
athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in
excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it
employed more than 44,000 people worldwide. In 2014 the brand alone was valued at
$19 billion, making it the most valuable brand among sports businesses.

The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bower
man and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company
takes its name from Nike, the Greek goddess of victory. Nike markets its products under
its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force
1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and subsidiaries including
Brand Jordan, Hurley International and Converse. Nike also owned Bauer Hockey (later
renamed Nike Bauer) between 1995 and 2008, and previously owned Cole Haan and
Umbro. In addition to manufacturing sportswear and equipment, the company operates
retail stores under the Nike town name. Nike sponsors many high-profile athletes and
sports teams around the world, with the highly recognized trademarks of "Just Do It" and
the Swoosh logo.

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Origins and history

A Nike Factory Store in Vaughan Mills

Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of
Oregon track athlete Phil Knight and his coach Bill Bower man in January 1964. The
company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (now
ASICS), making most sales at track meets out of Knight's automobile.
According to Otis Davis, a student athlete whom Bower man coached at the University of
Oregon, who later went on to win two gold medals at the 1960 Summer Olympics, Bower
man made the first pair of Nike shoes for him, contradicting a claim that they were made
for Phil Knight. Says Davis, "I told Tom Brokaw that I was the first. I don't care what all
the billionaires say. Bill Bower man made the first pair of shoes for me. People don't
believe me. In fact, I didn't like the way they felt on my feet. There was no support and
they were too tight. But I saw Bower man make them from the waffle iron, and they were
mine."

In 1964, in its first year in business, BRS sold 1,300 pairs of Japanese running shoes
grossing $8,000. By 1965 the fledgling company had acquired a full-time employee, and
sales had reached $20,000. In 1966, BRS opened its first retail store, located at 3107 Pico
Boulevard in Santa Monica, California next to a beauty salon, so its employees no longer
needed to sell inventory from the back of their cars. In 1967, due to rapidly increasing
sales, BRS expanded retail and distribution operations on the East Coast, in Wellesley,
Massachusetts.

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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 Swoosh newly designed
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.

In 1976, the company hired John Brown and Partners, based in Seattle, as its first
advertising agency. The following year, the agency created the first "brand ad" for Nike,
called "There is no finish line", in which no Nike product was shown. By 1980, Nike had
attained a 50% market share in the U.S. athletic shoe market, and the company went
public in December of that year.

Together, Nike and Wieden+Kennedy have created many print and television
advertisements, and Wieden+Kennedy remains Nike's primary ad agency. It was agency
co-founder Dan Wieden who coined the now-famous slogan "Just Do It" for a 1988 Nike
ad campaign, which was chosen by Advertising Age as one of the top five ad slogans of
the 20th century and enshrined in the Smithsonian Institution. Walt Stack was featured in
Nike's first "Just Do It" advertisement, which debuted on July 1, 1988. Wieden credits the
inspiration for the slogan to "Let's do it", the last words spoken by Gary Gilmore before he
was executed.
Throughout the 1980s, Nike expanded its product line to encompass many sports and
regions throughout the world. In 1990, Nike moved into its eight-building World
Headquarters campus in Beaverton, Oregon. The first Nike retail store, dubbed Nike town,
opened in downtown Portland in November of that year.

Phil Knight announced in mid-2015 that he is planning to step down as chairman of Nike
in 2016.

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2.1 Company Background

Phil Knight, a good miler, and Bill Bower man, a track coach who tinkered with
shoe designs, met at the University of Oregon in 1957. The two men formed Blue
Ribbon Sports in 1962 in an effort to make quality American running shoes. The
next year they began selling Tiger shoes, manufactured by Japanese shoe
manufacturer Onitsuka Tiger. They sold the running shoes out of cars at track
meets.The company rebranded as NIKE in 1972, named for the Greek goddess of
victory. The NIKE "Swoosh" logo was designed by a graduate student named
Carolyn Davidson, who was paid $35. The same year NIKE broke with Onitsuka in
a dispute over distribution rights. It went public in 1980.

Sales and Marketing

NIKE generates about two-thirds of sales from wholesale customers such as retail
accounts (footwear and sporting goods stores; athletic specialty stores; department
stores; skate, tennis, and golf shops), independent distributors, and licensees. It also
sells directly to consumers through a strong global network of company-owned
stores and its growing ecommerce site.

NIKE markets its footwear and other products globally through diverse advertising and
promotional programs and campaigns, including print, social media, online advertising,
and endorsement contracts with celebrity athletes. Total advertising and promotion
expenses were about $3.8 billion, $3.6 billion, and $3.3 billion for fiscal years 2019,
2018, and 2017, respectively.

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PRODUCT TREND

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

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

The Competitiveness of Hong Kong Brands/Suppliers of Leather Consumer Goods. Most

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

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2. 2 PRODUCT PROFILE

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

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

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

Lightweight: This attribute is in line with the two described above. A lightweight shoe
provides greater mobility and eases the pressure on the feet of the wearer.

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

Style: Nike‘s designs are considered to be the most stylish in the industry and beat all
others as far as looks are concerned. Attractively packaged, it is a delight to bring a
pair home. Add to this the ―Swoosh‖ – the most recognizable symbol in sports and you
have a product that would give the user a definite sense of pride.
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Nike shoes also come with a guarantee card that enables the owner to return it in case of
manufacturing defects. However, owing to the fact that the company implements strict
quality control measures, coming across a defective pair in a store are a rarity. In 2008,
Nike has added the Nike 6.0 and Nike SB shoes, designed for skateboarding. Nike has
also launched cricket shoes, called Air Zoom Yorker, designed to be 30% lighter than
their competitors'. Nike positions its products in such a way as to try to appeal to a
"youthful. ............... materialistic crowd". It is positioned as a premium performance
brand.

NIKE 6.O

NIKE SB

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PUNCHLINE

Nike "Just do it" ----. The punch line communicates that using Nike can improve your
performance

by enhancing the self-confidence.

This punch line has helped Nike to carry the USP along with it, So that consumers are able
to differentiate it from the same need fulfilling products. It is the voice of the brand,
which primarily gives out the minimum momentum, thrust or impetus to push the brand
in the mind of the customer. Hence, this punch line is considered as the ―5th ‗P‘ of the
Marketing mix of Nike‖.

SALES AND MARKETING

Company experience moderate fluctuations in aggregate sales volume during the year.
However, the mix of product sales may vary considerably from time to time as a result of
changes in seasonal and geographic demand for particular types of footwear, apparel, and
equipment. Because NIKE is a consumer products company, the relative popularity of
various sports and fitness activities and changing design trends affect the demand for its
products. So, they must therefore respond to trends and shifts in consumer preferences by
adjusting the mix of existing product offerings, developing new products, styles and
categories, and influencing sports and fitness preferences through aggressive marketing.
This is a continuing risk. Failure to timely and adequately respond could have a material
adverse affect on our sales and profitability.

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 INTEGRATED MARKETING 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 TechLab, Nike is utilizing its Internet channel to the
fullest.

Nike strategically coordinates its television and print ads, sponsorship, Web site, an 800
number, billboards, and other media to form an effective mix of communications. The
athletes who deliver its message are a major factor. A number of famous athletes who
promotes Nike are basketball players Michael Jordan & Nolan Ryan, tennis players John
McEnore and Andre Agassi., 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 Nike. The charisma, talent, expertise, and
personality of such athletes deliver Nike‘s message. According to its Web site. Nike exits
to be the best sports and Fitness Company in the world. We are here to inspire and
motivate the athlete in all of us and advocate the love of sports. We live in the heart of
sports and the athletes who play them.

And Nike is expanding its total market with integrated marketing communication. It is
founder of P.L.A.Y. (Participate in the Lives of America‘s Youth), a multimillion-dollar
program to promote healthy, active lifestyle among young people. There is also Niketown
stores feature basketball courts where customers can try out shoes, multiscreen
televisions to display Nike promotions, and appeal autographed by Nike athletes.

With the growing popularity of the WNBA, women‘s soccer, and such prominent female
Olympians as Marion Jones. The interest in women‘s sports and fitness is at an all-time
high. Nike has already seen the positive impact of this women‘s movement through such
successful initiatives as ―shop-in-shop‖ concepts in women‘s sections of U.S. department

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stores, women‘s retails in Japan and women‘s focused Web site sales in Hong Kong‖.
When the Nike was launched 28 years ago, a mere one in 30 school aged girls were
involved in sports. Today that number has jumped to one in five and Nike is at the
forefront in sponsorship and involvement in supporting women in sports.

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.

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STRENGTH

Nike has a tradition of strong graphic identity, enormous brand awareness. They are the
undisputed heavyweight champions of branding. They admit they're not in the apparel
business; they're in the image business. From Tiger Woods to Michael Jordan, Nike
surrounds itself with winners. Their print and TV ssads 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.

THE SWOOSH REMAINS THE SAME

Though it is only about 30 years old; there are few other symbols more recognizable
around the world than the Nike Swoosh. Its form is simple and swift. It's meaning built
masterfully over the years with billions of dollars of products, advertisements and
research. Like a famous signature, it has earned a unique right to identify something as
special - whether it's a pair of running shorts or a for such an elegant shape, the Swoosh
carries a lot of weight. It is not a logo that is dressed up in lot of colours, showing up
mostly in black or white. Nor does the logo change often, unlike the stylistically driven
Alfred A. Knopf dog. That it's strength. Keeping the Nike Swoosh conservative and
consistent allows it to become a unifying device across channels such as TV, print or
Web, which tend to be anything but that.

Such an approach gives the logo a status nearly approaching reverence but with
versatility. This has been used to great effect in many Nike TV spots. The Swoosh can be
at once seen as a symbol of ultra-cool punctuating the end of. Or it can be seen as
deadpan funny when it appears after Lance Armstrong has resuscitated a fallen elephant.

On the Web, Nike uses its logo small and usually in the upper - left or lower right corner
of their pages- quiet but confidant. But the Swoosh is about the only thing stays constant.

It's not unusual for Nike to completely gut its NikeTown stores for a new look every 18
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months. If their stores are that malleable, imagine the amount of change to their sites.
Regardless of this constant change, the Swoosh will always remain the same.

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A CONSISTENT STRUCTURE

To embark on a strategy of creating as many sub-sites as Nike does requires more than a
great logo to succeed. It requires a strong graphic identity and skill. Nike is adept at not
only sniffing out popular cultural trends and desires but creating them as well. And to
engage it's multifaceted audience to its many lifestyle images — such as "Ballers" or
"Everyday Athletes" — Nike has turned to the Web and begun to create fine-tuned micro
sites.

The content on each site is unique and typically bathed in widely diverse color schemes.
To anchor the designs, Nike keeps most pages neatly framed with gray bars holding
similar elements like teasers to new sneakers or contests. Pages are designed with a
modular approach in mind allowing elements to be mixed and matched. Such structural
cues can also provide an easy out for the confused or disinterested user.

CUSTOMIZATION ON WEB

Nike's site offers us an interesting idea when it comes to designing an online identity
make the site visitor the hero. Don't just shower them with unearned praise, challenge
them to learn, provide them with the tools and information to decide and act for
themselves.

This can be as simple as adding some customizable elements or more challenging such as
letting them re- edit a famous commercial. Allow users to reveal what's important to them
and why. The act of opening a dialogue is sometimes reward enough. Nike takes our ideas
of beauty, grace, speed 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.
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MARKETING STRATEGIES

Nike promotes its products by sponsorship agreements with celebrity athletes,

professional teams and college athletic teams.

STRATEGIES OF NIKE

LOW COST MANUFACTURING STRATEGY

Nike products are manufactured in factories owned and operated by other companies.
This outsourcing helps the Nike to take the advantage of low manufacturing cost. Its
major manufacturing countries includes: China, Indonesia, Vietnam, Thailand, Italy,
Taiwan, South Korea.

For eg In fiscal 2003, approximately 1 percent of total NIKE brand apparel production for
sale to the United States market was manufactured in the United States by independent
contract manufacturers, most of which are located in the southern states. The remainder
was manufactured by independent contractors located in 35 countries.

PRODUCT RESEARCH AND DEVELOPMENT

Their research and development efforts are a key factor in their past and future success.
Technical innovation in the design of footwear, apparel, and athletic equipment receive
continued emphasis as NIKE strives to produce products that reduce or eliminate injury,
aid athletic performance and maximize comfort. In addition to NIKE‘s own staff of
specialists in the areas of biomechanics, exercise physiology, engineering, industrial
design and related fields, they also utilize research committees and advisory boards made
up of athletes, coaches, trainers, equipment managers, orthopedists, podiatrists and other
experts who consult with us and review designs, materials and concepts for product
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improvement. Employee athletes wear-test and evaluate products during the design and
development process.

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SEGMENTATION

Nike has segmented its market on the basis of the following variables:

• Demographi

cs 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).

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, its target audience has shifted from
more masculine towards female and even third agers.

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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. Also Nike‘s number one position was due in part to its
product positioning.

BRANDING

Symbol as a brand: The most important aspect of a brand's name and symbol is
that it silently speaks everything about the company or product. Nike is the best
example of how a symbol is best utilized and exploited and its strong association
with the products. Nike is symbolized by a tick mark or something which is always
right. The business card of a Nike employee has a tick on it instead of the company
name and still people make out the company where the person is employed just by
looking at the tick.

Brand Extension: Nike has turned sneakers into something more – athletic tools.
Over time, many consumers have developed a mindset about the difference between
Nike sneakers and any other brand of sneakers. Now, many years later, Nike is
exploring line extensions into other types of clothing and footwear to bolster its
brand against changing demographics and lifestyles.

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Brand Narration: Nike do not yell at the consumer to buy, buy, and buy. They instead
engage them in a narrative that makes the consumer want to buy because they identify
with narrative components. Nike‘s brand narrative prescribes the consumer to get out and
exercise, ―Just Do it‖. Buying Nike product is almost an afterthought.

Advertising

In 1982, Nike aired its first three national television ads, created by newly
formed ad agency Wieden+Kennedy (W+K), during the broadcast of the New
York Marathon. The Cannes Advertising Festival has named Nike its Advertiser of
the Year in 1994 and 2003, making it the first company to receive that honor twice.

Nike also has earned the Emmy Award for best commercial twice since the award
was first created in the 1990s. The first was for "The Morning After," a satirical
look at what a runner might face on the morning of January 1, 2000 if every dire
prediction about the Y2K problem came to fruition. The second was for a 2002
spot called "Move," which featured a series of famous and everyday athletes in a
variety of athletic pursuits.
New media marketing

Nike was an early adopter of internet marketing, email management technologies, and

using broadcast and narrowcast communication technologies to create

multimedia marketing campaigns.

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Minor Threat advertisement

In late June 2005, Nike received criticism from Ian MacKaye, owner of Discord
Records, guitarist/vocalist for Fugazi and The Evens, and front man of the defunct
punk band Minor Threat, for appropriating imagery and text from Minor Threat's
1981 self-titled album's cover art in a flyer promoting Nike Skateboarding's 2005
East Coast demo tour.

On June 27, Nike Skateboarding's website issued an apology to Dischord, Minor

Threat, and fans of both and announced that they have tried to remove and dispose
of all flyers. They stated that the people who designed it were skateboarders and
Minor Threat fans themselves who created the advertisement out of respect and
appreciation for the band. The dispute was eventually settled out of court between
Nike and Minor Threat.

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 INDUSTRY ANALYSIS

MAJOR MACRO ENVIRONMENT FORCES

POLITICAL/ LEGAL ENVIRONMENT:

Due to the Industry‘s strong global presence, there are many legal restraints that must be
taken into consideration. There are positive aspects such as those provided by NAFTA
and GATT such as, reduced import/export duties when operating in Mexico and Canada,
and access to international markets and tariff cutbacks as provided by GATT. However
with the formation of the European Union and the introduction of the Euro, has increased
European influence on import controls, but it has also created one European market. In
1995 the EU (European Union) enforced on imported athletic footwear from China and
Indonesia anti-dumping duties. The U.S.‘s diplomatic relations with countries such as
China and Vietnam is critical for shoe manufacturers who want to produce in those
countries. In addition to these changes, there are also laws that vary from country to
country which may provide opportunities or impose restrictions.

SOCIOCULTURAL

The most influential cultural change would be how to approach the changing youth
markets who are mostly interested in boots, and sandals. Even though the consumers in
the footwear industry have become more brand conscious; that does not mean that they are
buying more athletic shoes. The industry was experiencing a decrease in health and
fitness awareness and practices, but it is believed that the onset of the twenty first century
has brought it back to wear it used to be in the early 90‘s.

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DEMOGRAPHIC

The industry is realizing the influx of women‘s sport players and leisure fitness
participants, and is preparing to accommodate such an increase in female consumers.
Also as women increase their consumption the younger generation is decreasing; due to
the popularity of boots and sandals. Additionally because of the increase and profitability
of technological industries some countries are deciding not to manufacture shoes in hopes
of making more money in other industries.
ECONOMIC

Due to the organization of the European Union and the disbursement of the Euro some
economic discomfort in participating countries may be felt. In addition to this, other
economic changes may be felt through the increase of inflation and unemployment in
Asia and the Pacific Rim, Latin America, and Russia, consequently having a negative
effect on shoe sales. Furthermore the fluctuation of foreign currency and interest rates,
may also have negative effects on the industry.

TECHNOLOGICAL

As the nature of science and technology change new advances are being made, but
because of the industries competitive nature each company makes their own advances,
and then copyrights them. The industry has come very far by studying the fashion,
leisure, fitness and sport consumers.

INDUSTRY- GROWING OR MATURE?

It is still a growing industry, because new advances in shoe technology and athletic wear
are made every day. Also, with the influx of clothing designers into the athletic shoe
market, the industry cannot be mature. No one company within the industry has really
lived up to its true potential yet. For example, Nike has a very large percent of the market
and they themselves are still growing.
30
2. 6 SWOT ANALYSIS OF NIKE

⮚ Strengths:

● Brand name recognition, because Nike has been around so long, the brand is

recognized and respected both internationally and domestically.

● Brand loyalty, Nike has consistently produced quality products that appeal to its

consumers both internationally and domestically.

● Nike carries a wide arrangement of products with a large amount of options for

personal preference.

● Nike is constantly trying to increase their international presence.

● Low Manufacturing cost

● 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 stock.

● 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
31
 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.

● 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 problems abroad.

32
⮚ Opportunities:

● Product Diversification, with new technology and increased earnings they should be

able to invest even more into R & D.

● 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‘ players.

● Increase marketing to the female consumer.

● Increase manufacturing of products that the new generation is interested,

specifically boots and sandals.
⮚ Threats:

● 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 in shoe sales.

● The fluctuation of foreign currency and interest rate may pose a threat to earnings.

● Import and export regulations.

33
2.7 4 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 on high quality construction and innovative design for men,
women and children. 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. They often market footwear,
apparel and accessories in ―collections‖ of similar design or for specific purposes. They
also market apparel with licensed college and professional team and league logos. They
sell a line of performance equipment under the NIKE brand name, including sport balls,
timepieces, eyewear, skates, bats, gloves, and other equipment designed for sports
activities. They also have agreements for licensees to produce and sell NIKE brand
swimwear, cycling apparel, maternity exercise wear, children‘s clothing, school supplies,
timepieces, and electronic media devices. They also sell small amounts of various plastic
products to other manufacturers through our wholly-owned subsidiary, NIKE IHM, Inc.
and plastic injected and metal products to other manufacturers through our wholly-owned
subsidiary.

34
⮚ PRICE

Nike aims at giving high value, fairly priced products to its customers. Its price range
vary for different categories of products and also vary in different countries

⮚ PLACE

Nike sell their products primarily through a combination of retail accounts, independent
distributors, licensees and subsidiaries in about 200 countries. For e.g.

In United States, it operates NIKETOWN shoe and sportswear stores, and NIKE Women
shops In Europe, the distribution channel is centralized. European Distribution Center
(EDC) receives Nike products from all over the world & serves retail store across Europe

In India, the distribution network of Nike India currently boasts of eight distributors, 25
exclusive Nike outlets, 15 multi-brand outlets and 20 speciality doors across major cities.
However, the exclusive distribution and retailing channel for the brand in India is Sierra
Group.

⮚ PROMOTION

The company has used both sports marketing and advertising to promote and build the
brand.

35
Sponsorship

Nike sponsors top athletes in many sports to use their products and promote and advertise
their technology and design. Nike's first professional athlete endorser was Romanian
tennis player Ilie Nastase. The first track endorser was distance runner Steve Prefontaine.
Prefontaine was the prized pupil of the company's co-founder, Bill Bower man, while he
coached at the University of Oregon. Today, the Steve Prefontaine Building is named in
his honor at Nike's corporate headquarters.

Nike is a major sponsor of the athletic programs at Penn State University and named its
first child care facility after Joe Paterno when it opened in 1990 at the company's
headquarters. Nike originally announced it would not remove Paterno's name from the
building in the wake of the Penn State sex abuse scandal. After the Freeh Report was
released on July 12, 2012, Nike CEO Mark Parker announced the name Joe Paterno
would be removed immediately from the child development center. A new name has yet
to be announced.

In 2012, Nike carried a commercial partnership with the Asian Football

Confederation. In August 2014, Nike announced that they will not renew their kit
supply deal with Manchester United after the 2014–15 season, citing rising costs.
Since the start of the 2015–16 season, Adidas has manufactured Manchester
United's kit as part of a world-record 10-year deal worth a minimum of
£750 million. Nike still has many of the top teams playing in their uniforms,
including: FC Barcelona, Paris Saint-Germain and Liverpool (the latter from the
2020–21 season), and the national teams of Brazil, France, England, Portugal and
the Netherlands among many others.

Nike has been the official kit sponsor for the Indian cricket team since 2005. On
February 21, 2013, Nike announced it suspended its contract with South African

36
limbless athlete Oscar Pistorius, due to his being charged with premeditated murder.

Nike consolidated its position in basketball in 2015 when it was announced that the
company would sign an 8-year deal with the NBA, taking over from the league's
previous uniform sponsor, Adidas. The deal required all franchise team members to
wear jerseys and shorts with the Swoosh logo, beginning with the 2017/18 season.
After the success of partnership with Jordan, which resulted in the creation of the
unique Air Jordan brand, Nike has continued to build partnership with the biggest
names in basketball. Some have had signature shoes designed for them, including
Kobe Bryant, Jason Kidd, Vince Carter and more recently LeBron James, Kevin
Durant and Paul George, among others.
A news report originating from CNN reported that Nike spent $11.5 billion, nearly
a third of its sales, on marketing and endorsement contracts in the year 2018. Nike
and its Jordan brand sponsored 85 men's and women's basketball teams in the
NCAA tournament.

RECENT DEVELOPMENTS

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

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

While retail sales have increased both in value and volume, wholesale sales have
declined due to restriction of supplies as a means to recover customers outstanding.
General recession and sluggish market conditions in the industry also have had a
direct impact on lower sales and profitability. Resistance of consumers to price
37
rises in popular volume products as well as discounts to clear slow-moving stocks
and underutilization of production capacity adversely affected the operational
results. The lockout declared at the Peenya factory on October 1, 2007 due to
serious industrial relation problems and non-compliance with the tripartite
settlement has been withdrawn. The footwear manufactured in this factory, which
was shifted to the company‗s other factories and associated manufacturers, will
now be gradually produced within the factory. The commencement of production
from this factory will help in re-cooping the minimal loss being suffered by the
company from this lockout.

In Simonson‘s words, ―The benefits and costs of fitting individual customer

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

It‘s all psychology. Consumers with well-defined preferences may be skeptical that

38
a marketer could match expectations. Those who don‘t know what they want may
not ever see the fit with what the seller wants them to buy. So, individualized offers
depend on customers‘ preferences &; how the offer was extended &; and on trust.
―Effective individual marketing requires not only an understanding of individual
preferences and matching offers to those preferences, but also a
thorough familiarity with the various factors that impact customers‘ responses,‖
Simonson writes. This is a tall order, one that some companies have been able to
fill, at least to some extent. For example, Amazon keeps track of customers‘
purchases and suggests other books they might like. Dell builds computers from
mass-made parts to customers‘ specifications. But Simonson argues some
companies can take the concept too far, like the Custom Foot chain of shoe stores
that took detailed measurements and specifications from each customer to design
one-of-a-kind shoes. Custom Foot didn‘t take into account that some customers
were put off by the individualized attention, Simonson says, and felt obligated to
buy the shoes because the store went to so much trouble. They often didn‘t come
back. So knowing only the customer preferences is not enough. It is required to
understand other aspects of customer behavior.
Kipping this in mind, present study will find out and analyze consumer behavior
of Nike shoes with reference to ladies segment.

FUTURE PLAN

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

39
An attractive valuation compared to its peers is the main trigger for the scrip.
Besides, the company‘s aggressive focus on retailing and revamping of business
(a division into shoes and apparels) is also helping sentiment for the scrip. Plans
are afoot to start selling apparel in India made by the joint venture North Star.
There‘s talk that the company is planning on a voluntary retirement scheme
(VRS) to cut costs.

For the third quarter ended 30 September 2007, Nike India reduced its losses to Rs 5.68
crore (Rs

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

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

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

Nike India has a large marketing network with over 1,500 showrooms, 27
40
wholesale depots and eight retail distribution centers across the country.
Besides, there is a network of 300 exclusive wholesalers servicing 25,000 dealers
all over the country. However, in spite of this and the license to sell other brands
like Nike, Hush Puppies and Lotto, Nike has not been able to improve sales
consistently. The recent rise in sales during the third quarter ended September
2006 can be attributed to the festive season. Recently, it also entered into a
retailing tie-up for Lee Cooper shoes.

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

Nike India has plans to invest in sophisticated machinery to retain its niche place
in manufacturing. The company has put a fresh focus to its retail business. The
company has decided to cleanse its wholesale operation by building relationships
with credit-worthy buyers.

It is to the company‘s credit that it has lately overhauled its marketing set-up into a
four-tier retail structure that will be stocked with products matching the area‘s
customer profile. A Nike outlet in an up market place will offer a distinctly
different range of footwear from another in the suburbs.

At the top of the four-tier structure will be international stores stocking brands
like Nike and Reebok. Next will be city stores, located in up market areas and
catering to middle and high- income groups. The company has identified the
brands Power, North Star, Bubble gummers, Marie Claire and Hush Puppies for

41
the top end of the market. Third in line will be family stores at commercial
locations displaying basic and mid-range footwear. At the bottom will be bazaar
stores that will basically aim at driving volume sales at lower price points.

The management of Nike India is taking major steps in terms of improving market
penetration, focus on stores configuration, distribution logistics, better industrial
relations and overhead rationalization. Launching of new products always
remained at the center stage of the company‘s operations.

42
At the same time, with the opening up of the economy, more and more goods will
be imported from China. This may significantly affect Nike India‘s prospects
unless it manages to wean away customers with a drastic cut in costs. Alternatively,
like other Indian manufacturers, even Nike may consider relocating its
manufacturing bases in China. However, it is not that easy a task to undertake.

Nike India, the 51% subsidiary of Toronto-based Nike Shoe Organization, remains
the biggest player in the Indian shoe market, though its share in footfalls has been
decreasing over the years.

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

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

Nike India has roped in Ogilvy & Mother for devising its festive season
advertising, side- stepping JWT, its incumbent agency. The job involves
developing special communication directed towards the festival season
shoppers.

Nike India Ltd (BIL) is India‘s largest footwear company selling over 60 Mn
pairs per year in India, USA, UK, Europe, Middle East and Far East. BIL has a
market share of 60% in leather products and 70% in canvas shoes.

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

43
unorganized sector. The industry size is around Rs 75 Bn and is growing at around
10% annually. It competes with Indian players such as Liberty Shoes, Phoenix
International, Mirza Tanners, Tata‘s, Action Shoes and Lakhani Shoes and global
players like Adidas, Reebok and Nike. Accessories and garments contribute
footwear sales account for more than 96% of sales while the balance. The turnover
break up is as follows –
 Products Volume (%) Value (%)

 Rubber and Canvas 50: 30

 Leather 29:57

 Plastic 21: 9

GROWTH DRIVERS

The Company has a very comprehensive distribution network which

comprises its own and franchise stores. It has 1500 showrooms, 25 wholesale
depots and 8 distribution centers.

POPULAR BRANDS

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

RISK AND CONCERN

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

44
being flooded by imports. Labor issues have always bothered BIL and this resulted
in disruption of manufacturing activities on numerous occasions. Competition is
hotting up in the domestic market due to popular brands such as Gaitonde, Red
Tape, Lotus Bawa and Tata‘s. These brands are gaining market share especially in
the premium segment and in this segment BIL has no significant presence.

Latest Results Sales for Q3 FY2000 increased by 5.5% yoy to Rs1.7bn. profits
dropped by 90% yoy to Rs3.8 Mn due to lower operating margins and higher
depreciation and interest.
Depreciation increased by 6.3% yoy to Rs 37 Mn while interest cost increased by 9.3%
yoy to Rs

23.4 Mn.

Operating margins dropped by 3.3% due to increase in input cost. The Peenya
plant has not commenced operations despite lifting up of the lock out since
July 3, 2007.

45
VALUATION

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

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

being flooded by imports.

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

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

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

Sales for Q1 CY2001 decreased marginally by 0.6% yoy to Rs 1590.7 mn. There
was a net loss of Rs 30.2 mn as against a profit of Rs 39.6 mn in the corresponding
period of the previous year. The loss is due to lower operating margins and higher
interest.
BIL‘s long-term success is dependent on the labor issue and the flexibility, which
it can adopt to meet threat of imports and competition from local footwear
companies. Long term investors with a two-year investment horizon can
accumulate the stock at current levels.

46
 CHAPTER- 3

LITRATURE OVERVIEW

The study of consumer behavior has evolved since the Information Processing
Model assumed that the individual is logical in his/her buying process. The
Experiential View is a phenomenological perspective that perceives consumption
as a primary state of consciousness having a variety of symbolic meanings,
responses and hedonist criteria. The basis of the traditional Information
Processing Model is the optimization of the utility of a product under the basis of a
utilitarian evaluation of its tangible characteristics. Acquisition, possession and
consumption are activities taking place in a process of impressions creation or
identity management which is, according to Belk, an interactive process
concerning both the image of goods consumed and that of the individuals
consuming them. The Symbolic Interactionism Perspective deals with the
relationship between consumers and the products they consume, and suggests that
a significant proportion of consumption behaviors consist of social behaviors, and
vice versa. This leads us to consider the importance of socialization processes
(family, reference groups) through which individuals learn the meanings of
symbols and those of consumption.
Individuals are often motivated to acquire products according to what they mean
to them and to members of their social reference groups (Leigh and Gabel), their
behavior is subject to the pressures of cultural norms and the expectations of
socialization institutions rules such as those coming from family and other
reference groups.

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

communication, at an operational level, image variables may be regarded as the
intangible attributes of the product that carry cultural and social meanings.
According to Erickson, Johansson and Chao, an image variable is defined as
―some aspect of the product that is distinct from its physical characteristics but that
47
is nevertheless identified with the product‖. The image variables emerge from four
cognitive representations individuals have of their environment: the symbolism of
advertising, the celebrity endorsement, the brand, and the country of origin of the
product.

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

The informational value of the country of origin was also found to vary according
to the level of involvement of the consumer in purchasing the product and the
presence of other cues such as brand name, guarantee and price. In a recently
published meta-analysis of country-of-origin effects, Peterson and Jolibert
conclude that the average effect size is lower (0.19) for purchase intention, higher
(0.30) for quality/reliability perceptions and context dependent. More specifically,
they found that the characteristics of the study (research design, type of
48
respondents, study cues, sample size, stimulus context etc.) influence the relative
effect of country-of-origin to a lesser degree for quality/reliability perceptions than
for purchase intention. However, the type of respondents (students, consumers or
businesspeople) had no influence on quality/reliability perceptions.

Stanford GSB marketing professor Itamar Simonson and Ran Kivetz, an assistant
professor at Columbia University, asked a group of 195 Columbia students to do;
eat a lot of sushi.
Participants were offered a "frequent diner" program that would reward them for
their patronage at various university dining locations and given a card that would
track their purchases. They were randomly assigned to one of two groups those in
the "low" requirement group were told they would have to purchase 12 sandwiches
to get two free movie tickets, whereas those in the "high" requirement group were
told they would have to purchase 12 sandwiches and 12 orders of sushi to get two
free movie tickets. So, the second group had to do much more to receive the same
reward. Kivetz and Simonson also asked participants how much they liked sushi
relative to the typical student. The result? Students who liked sushi were much
more likely to join the "frequent diner" program that required them to purchase
both 12 sandwiches and 12 orders of sushi. "It shows a common mistake that
consumers make & if they see an offer that seems to fit them better than other
consumers, for example, a program that requires sushi-lovers to eat sushi
that fit completely colors their assessment of how attractive the offer is," Simonson
says. As a result, by creating what appears like personal fit, marketers can attract
consumers to frequency programs and many other promotional offers? Kivetz and
Simonson replicated these findings regarding influences on participation in
frequency, or loyalty, programs in studies with travelers interviewed at domestic
airports. The sushi study is among a number of studies Simonson has been
conducting since the late 1980s about how consumers make choices. Much of his
work debunks the accepted theory that giving consumers what they want and
making a profit are the most basic principles of marketing.
49
The theme that pervades Simonson's work is that customers may not know what
they want and second-guessing them can be expensive. In his words, ―The benefits
and costs of fitting individual customer preference are more complex and less
deterministic than has been assumed." That's because, Simonson says, "customer
preferences are often ill-defined and susceptible to various influences, and in many
cases, customers have poor insight into their preferences."

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

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

that a marketer could match expectations. Those who don't know what they want
may not ever see the fit with what the seller wants them to buy. So, individualized
offers depend on customers' preferences; how the offer was extended & and on
trust. "Effective individual marketing requires not only an

50
understanding of individual preferences and matching offers to those
preferences, but also a thorough familiarity with the various factors that impact
customers' responses," he writes.

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

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

51
 CHAPTER- 4

RESEARCH METHODOLOGY

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 behavior 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 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

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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
totaling 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; 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.
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 RESEARCH OBJECTIVES:

● To study the tastes, preferences, and buying behavior of consumers in case

of footwear of Bata.
● To analyze buying behavior of ladies segment of consumers.
● To recommend strategies to Nike to increase sales in ladies segment.

The main objectives of this study are:

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

TYPES OF RESEARCH:

(a) Descriptive research

Descriptive research includes Surveys and fact-finding enquiries of different

kinds. The main characteristic of this method is that the researcher has no control
over the variables; he can only report what has happened or what is happening.

(b) Data Source:

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 fromjournals, books and through Internet search.

(c) 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.

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(d) 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.

(e) Research Instrument:

Selected instrument for Data Collection for Survey is Questionnaire.

(f) 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.

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. 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.

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 FIGURE 1.1 Purpose of Hypotheses
⮚ 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

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▪ Be clear and understandable
▪ Be testable
▪ Be measurable
▪ 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.'

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⮚ 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. 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.

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 QUESTIONNAIRE

QUESTIONNAIRE DESIGN FORMULATION

Under this method, list of questions pertaining to the survey are prepared for
marketing staff of consumers of Nike shoes.

Questionnaire has structured type questions as well as unstructured type questions.

Structured objective type questions are prepared for the respondents with fixed
response categories. Some of the questions are of multiple-choice type. The
questions have more than one alternative.

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

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

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

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

TYPES OF QUESTION

INCLUDED: DICHOTOMOUS

QUESTIONS
Which has only two answers ―Yes‖ or ―No‖?

MULTIPLE CHOICE QUESTIONS

Where respondent is offered more than two choices.

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IMPORTANCES 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 utilized 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 analyses the cross-sectional design in a negative and

positive way. 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 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.

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 behaviors 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

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 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.

● 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.

Casual 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 recognize 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
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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 behavior 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 no other factors influencing the causal relationship, especially
when dealing with people's attitudes and motivations. 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 randomized 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 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.
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 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 designs: 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.
● Within subjects' (repeated measures) designs: There are same subjects used

for each level of the independent variable, as in before after 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.

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 • 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 organization design

When a new organization 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.

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This study estimates the causal impact of an intervention on the targeted
population. The following 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.

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 non-probability 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:

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 Figure 1.2: Sampling Stages

● 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 which is given below in figure 1.7.

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 Figure 1.3: 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

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(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: This is the final step in the sampling
process.
Example: The National Health and Nutrition Examination Survey
(NHANES) sampling procedure consists of 4 stages, shown in figure 1.8 and described
below.

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 Figure1.4: 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.

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 STATISTICAL TOOLS & TECHNIQUE

It is noted that Nike owns 48% of the athletic footwear market in the United States. Specifically
for the basketball footwear, Nike has 96% of the share. See below for a chart of Nike having
96%. In 2016, Nike's sales revenue was 32.46 billion. Below is a chart that shows Nike's revenue
worldwide from 2005 to 2016 in USD.

Further Nike Statistics related to market leadership:

● Nike sales revenue in 1996 was $6.4 billion USD and has grown to $32.46 billion USD as
of 2016
● Nike has 31% of the global athletic footwear market
● There are 700 Nike stores globally
● There are 45 countries that have a Nike office

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Below is a chart that details Nike's revenue for North America:

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The chart below shows how in 2015, Nike is dominating in their market in the United States for
basketball shoes. A perfect example of their leadership in the basketball market.

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 CHAPTER- 5

ANALYSIS & INTERPRETATION OF DATA

1. Do you like Nike footwear products? Why or Why not?

(a) Yes
(b) No

The following results were observed:

(a) 100% people said Yes

(b) 0% people said No

Yes
100%
No

INTERPRETATION

Therefore, it is observed that most of the respondents like NIKE products.

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2. Have you ever bought Nike footwear products?

(a) Yes
(b) No

The following results were observed:

(a) 82% people said Yes

(b) 18% people said No

18%

Yes
No
82%

INTERPRETATION

Therefore, it is observed that most respondents have bought Nike footwear.

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3. Why do you buy Nike footwear products?

(a) Highly Quality

(b) Brand + Trendy pursuer
(c) Others

The following results were observed:

(a) 44% people said High Quality

(b) 47% people said Brand + Trendy pursuer
(c) 9% people said others

9%

High Quality
44%
Brand + Trendy pursuer
47% Others

INTERPRETATION

Therefore, it is observed that most People buy Nike footwear because Of its Brand and
Trendy looks.

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4. What kind of Nike products do you buy?

(a) Footwear
(b) Clothes
(c) Accessories
(d) Other

The following results were observed:

(a) 78% people said Footwear

(b) 15% people said Clothes
(c) 5% people said Accessories
(d) 2% people said Others

5%
15% Footwear
Clothes
78% Accessories
Others

INTERPRETATION

Therefore, it is observed that most saleable item of Nike is Footwear.

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5. Do you think prices of Nike footwear is expensive?

(a) Yes
(b) No

The following results were observed:

(a) 88% people said Yes

(b) 12% people said No

12%

Yes
No
88%

INTERPRETATION

Therefore, it is observed that most people think Nike footwear is Expensive.

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6. Where is the best place to reach you with Nike advertisement?

(a) Television
(b) Newspaper
(c) Magazine
(d) Internet

The following results were observed:

(a) 13% people said Television

(b) 1% people said Newspaper
(c) 2% people said Magazine
(d) 84% people said Internet

13%

Television
Newspaper
Magazine
84% Internet

INTERPRETATION

Therefore, it is observed that Internet is the most reachable Medium.

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7. How often do you buy Nike products?

(a) Daily
(b) Weekly
(c) Monthly
(d) Yearly

The following results were observed:

(a) 1% people said Daily

(b) 1% people said Weekly
(c) 14% people said Monthly
(d) 84% people said Yearly

14%
Daily
Weekly
Monthly
84% Yearly

INTERPRETATION

Therefore, it is observed that people buy Nike products once in a Year.

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8. How many times do you watch Nike T.V. Advertisement in one month?

(a) 1-5 times

(b) 6-10 times
(c) 11-15 times
(d) None of the above

The following results were observed:

(a) 30% people said 1-5 Times

(b) 13% people said 6-10 Times
(c) 10% people said 11-15 Times
(d) 47% people said they never viewed

1-5 Times
30%
47% 6-10 Times
11-15 Times
None of the above
13%
10%

INTERPRETATION

Therefore, it is observed that people haven’t watched Nike Advertisment in a month.

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9. What are the main factors if you switch to the footwear of another brand?

(a) Quality
(b) Price
(c) Comfort
(d) Advertisement

The following results were observed:

(a) 40% people said Quality

(b) 28% people said Price
(c) 30% people said Comfort
(d) 2% people said Advertisement

Quality
30% 40% Price
Comfort
Advertisement
28%

INTERPRETATION

Therefore, it is observed that people will switch the product just for Quality purpose.

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10. Do you know Nike is offering personalized customized footwear?

(a) Yes
(b) No
(c) May be

The following results were observed:

(a) 20% people said Yes

(b) 21% people said No
(c) 59% people said May be

20%
Yes
No
59% 21% May be

INTERPRETATION

Therefore, it is observed that few people are not aware Nike is offering personalized
customized footwear.

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 CHAPTER- 6

CONCLUSION

Nike is a well-known, successful company worldwide. Nike maintains a positive, corporate culture within
an innovative and profitable company. Nike is more profitable than its competition and dominates the
global athletics and footwear market. Furthermore, Nike has more followers on its social media than all
of its competition and is able to target specific audiences through multiple pages, such as Nike football or
Nike Women. Social media plays a key role in Nike‘s marketing strategy and is a key reason for its strong
brand name. Lastly, Nike‘s corporate social responsibility is extensive and highly transparent. Nike goes
to great lengths for its corporate social responsibility by increasing sustainable practices and additionally
spreading innovation and physical activity.

Nike‘s marketing strategy is to continuously improve its products and services. It does this through
measures of product movements, assessments of their competitor‘s products and innovation. They have
achieved competitive edge through the employment of sound marketing techniques in the four aspects
hence their performance. Their success continues to grow and they now hold 33% of the market in the
sports shoe section which is the highest and coming in a close second is adidas with 22% of the market.
Their aim is to dominate 50% in the next ten years.

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 CHAPTER- 7
SUGGESTION AND 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 be
employed. New lines of collections should be introduced for festivals.

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

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

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

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RECOMMENDATIONS
To explore the mainland market, Hong Kong companies should position themselves in areas in
which they are strong. From the viewpoint of mainland consumers, Hong Kong's leather
consumer goods are considered competitive in the high-end and mid-range. Mainland consumers
are brand conscious, and it is vital to promote own brands which have clear image.
This survey also shows that Hong Kong products are preferred for their design/style and quality.
Bearing these in mind, Hong Kong companies should never compromise on quality, and they
should allocate more resources to product design, selection of material and craftsmanship.
To conclude, it can be said that through the global sports retail industry has reached its maturity,
but the Indian sports retail industry is still at its infancy. But with the huge potentiality existing in
the Indian market, it is expected to grow in leaps and bounds in the future.

⮚ The prices of the shoes must be reduced to increase sales.

⮚ New lines of collections should be introduces for festivals.
⮚ The stores must be decorated properly.
⮚ Seasonal promotion campaigns, like special discounts & advertisements (magazines, internet,
etc.), could be employed.
⮚ Product displays should be designed to create a strong first impression.
⮚ More number of outlets should be opened to reach to all types of customers in all the regions.
⮚ More variants should be introduced in the accessories section.

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 CHAPTER- 8

WEBLIOGRAPHY

www.nike.com
www.webcrawler.com
www.google.com
www.indiatimes.com

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 SURVEY QUESTIONNAIRE

1. Do you like Nike footwear products?

● Yes
● No
2. Have you ever bought Nike footwear products?
● Yes
● No
3. Why do you buy Nike footwear products?
● Highly Quality
● Brand + Trendy pursuer
● Other
4. What kind of Nike product do you buy?
● Footwear
● Clothes
● Accessories
● Other
5. Do you think price of Nike footwear is expensive?
● Yes
● No
6. Where is a best place to reach you with Nike advertisement?
● Television
● Newspaper
● Magazine
● Internet
7. How often do you buy Nike products?
● Daily
● Weekly
● Monthly
● Yearly

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8. How many times do you watch Nike TV advertisement one month?
● 1-5 times
● 6-10 times
● 11-15 times
● None of the above
9. What are the main factors if you switch to the footwear of another brand?
● Quality
● Price
● Comfort
● Advertisement
10. Do you know Nike is offering personalized customized footwear?
● Yes
● No
● May be

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