RESEARCH PAPER

The Study Of Consumer Behaviour towards

Footwear and Sportswear brand NIKE

Submitted by :- Tejas S. Shinde

Class / Division: SYBMS(A)
Subject: BUSINESS RESEARCH METHODS (BRM)
Professor: Sushma Jadhav
Roll no. : 228256

Topic: Consumer Behaviour towards NIKE Sportswear

 INTRODUCTION

❖ EXECUTIVE SUMMARY
This marketing research project report has been written keeping
in mind the Indian operations of Nike Inc. – the global sports shoe
giant. It aims first, at analysing the sports shoe industry of India
and finding a place in it for Nike. It then sets out to describe the
target audience for the product range and finally suggests a host
of marketing strategies and activities that will help Nike to
achieve its target of becoming the #1 sports shoe brand in India.
The project report begins with a brief overview of the product
category being dealt with, namely premium quality sports shoes.
It also dwells briefly on the history of the company and its current
position and activities.
The project moves on to the crux of the matter – the marketing
plan to be followed by Nike in India. Firstly, the objectives behind
this plan and the core strategy are stated. Customers to be
eventually targeted are described and compared with
competitors’ customer targets. After stating the objectives and
reasoning behind them, the actual marketing programs are
described in detail. This includes aspects such as pricing,
advertising, promotion, sales, channels, and the company
website. Suggestions are made on each and every one of these
aspects; improvements and innovations are recommended.
 Abstract

Consumers behaviour is a very important matter to study even

if you are a already established brand .If not studied properly it
can cause inconvenience to both business firm and society as
well as other related factors. The Nike is a very big multi-billion
dollar brand from America. This whole research project is done
so that to get information regarding strengths , weaknesses,
opportunities, Threats. That lie in front of brand Nike. The
motivation behind this study is to give suggestions to Nike
based on findings, to and for the better good of consumers and
society.
Key words : Customer satisfaction, Consumers behaviour, Nike , Ranking
analysis.

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.

❖ BACKGROUND OF THE PROBLEM

Since the late 1980s, Business School marketing professor Itamar

Simonson has looked for ways to understand how consumers
make choices. Much of his work debunks the accepted theory
that giving consumers what they want and making a profit are
the most basic principles of marketing. Customers may not know
what they want, and second-guessing them can be expensive,
says the professor who teaches MBA and PhD marketing and
consumer decision-making courses. In Simonson’s words, “The
benefits and costs of fitting individual customer preference are
more complex and less deterministic than has been assumed.”
That’s because “customer preferences are often ill-defined and
susceptible to various influences, and in many cases, customers
have poor insight into their preferences.” In one of his recent
papers, Simonson tackles the issue of one-to-one marketing and
mass customization. Supporters of these marketing approaches
have suggested that learning what customers want and giving
them exactly what they want will create customer loyalty and an
insurmountable barrier to competition.
In an example taken to the extreme in the 2002 movie Minority
Report, Tom Cruise’s character runs through a shopping mall
past talking billboards that recognize him by name and urge him
to buy products he had earlier expressed an interest in such as
jeans and Ray-Bans, the ultimate in personalized advertising. But
Simonson has this to say: “The fact that consumer preferences
are often fuzzy, unstable, and manipulability 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 favourable than those directed at larger
market segments.
It’s all psychology. Consumers with well-defined preferences may
be sceptical that a marketer could match expectations. Those
who don’t know what they want may not ever see the fit with
what the seller wants them to buy. So, individualized offers
depend on customers’ preferences &; how the offer was
extended &; and on trust. “Effective individual marketing
requires not only an understanding of individual preferences and
matching offers to those preferences, but also a thorough
familiarity with the various factors that impact customers’
responses,” Simonson writes. This is a tall order, one that some
companies have been able to fill, at least to some extent. For
example, Amazon keeps track of customers’ purchases and
suggests other books they might like. Dell builds computers from
mass-made parts to customers’ specifications. But Simonson
argues some companies can take the concept too far, like the
Custom Foot chain of shoe stores that took detailed
measurements and specifications from each customer to design
one-of-a-kind shoes. Custom Foot didn’t take into account that
some customers were put off by the individualized attention,
Simonson says, and felt obligated to buy the shoes because the
store went to so much trouble. They often didn’t come back. So
knowing only the customer preferences is not enough. It is
required to understand other aspects of customer behaviour.
Keeping this in mind, present study will find out and analyse
consumer behaviour towards Nike footwear and Sportswear.

❖ COMPANY PROFILE
Nike India Ltd. Is India‘s largest footwear company. Nike first
established itself in India in 1931 and commenced manufacturing
shoes in Batanagar in 1936. The company has its Headquarters
in Kolkata and manufactures over 33 million pairs per year in five
plants located in Batanagar (West Bengal), Faridabad (Haryana),
Bangalore (Karnataka), Patna (Bihar), Hosur (Tamil Nadu). It
secures its leather supply from two tanneries in Mokamehghat
(Bihar) and Batanagar (West Bengal). It has a distribution
network of over 1,500 retail stores and 27 wholesale depots
provide excellent access to consumers and wholesale customers
throughout India.
❖ 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 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.
 LITERATURE REVIEW

KUNAL MADAAN , student of Bachelor of Business Studies (BBS)(2021)

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

RAMAKRISHNA Y. , student of Batchelor of Business Administration(2019)

“This research project focuses on customer preferences and their buying behaviour
towards NIKE . Studying this topic was very important as to stay updated with the
changing market conditions and survive in it .”

UKessays, 16 Jan. 2018

States in their article “customers are the potential buyer of products. Most of the
companies are focusing on improving the relationship between with customers.
The result shows that improving the relationship between companies and
customers can retaining customer’s loyalty and attracting new customers, this
relationship is importance to most businesses. If a company having good
relationship with customer they understand customer needs and wants and to
satisfy the customers. Example: Nike Company have provide good customer
services, when customer facing problem of Nike product customer can send e-mail
with question relating to purchases and Nike Company will solve the problem
within 1 working day or contact to Nike Company telephone lines of customer
service to get the solution. Customer can log in Nike website to check the latest
Nike products, make ordering, shipping and returns. Customers can solve the
problem easily by send e-mail or calling and without going any outlet customers
can buy their products through Nike website.”
Start.io, posted on 27 July 2022
“Over five decades, Nike has built itself into one of the most iconic global brands,
instantly recognized by its ‘Just do it’ tagline and ‘swoosh’ symbol. The company is
the world’s leading sportswear brand, edging out competitors like Adidas, Puma,
and Under Armour.10”

Customercontactweekdigital.com, 3 December 2022

States “Nike doesn’t just sell products. It tells customers what they want — and
then makes that value readily available. The key is Nike’s ability to cultivate
customer trust. Between its brand legacy, its knowledgeable team and its
commitment to the entire athletic experience, Nike proves it knows athletes. With
personalized recommendations, it then proves it knows individual customers. This
one-two punch puts Nike in the unique, coveted position of consistently
anticipating and meeting customer needs. It allows Nike to “Just Do It.””

HYPOTHESES

H0 : There is no relationship between the age of consumer and

the popularity of the Nike products.
H0 : There is no significant influence of Nike in Indian Sportswear
industry.
H 0 : There is no relation between income and popularity of the
Nike products.
H1 : There is a relation between age and popularity as well as
awareness about the NIKE branded products .
 RESEARCH OBJECTIVES

❖ To study the tastes, preferences, and buying behaviour of

consumers in case of footwear and Sportswear of Nike.

❖ To recommend strategies to Nike to increase sales.

❖ SWOT analysis of the product sold.

❖ Comparative study with the competitors.

❖ To better understand the consumer behaviour and various

factors related to it.

❖ To study and assess risks in Indian Sportswear and

footwear market.
 SCOPE OF STUDY

❖ This study will cover core area of buying behaviour to get

the exact information about what can be improved and
undertaken to attract more buyers towards NIKE branded
products.

❖ To understand influence of NIKE products on buyers and

consumers.

❖ To recognise what benefits the buyers, consumers,

employees and the whole society.

❖ This study will focus on different variables and co-relation

between them for better good of consumers.

❖ To give suggestions to NIKE about better product

development and innovation.
 LIMITATIONS OF STUDY

This research project faced many limitations that might or

might not affect the findings and conclusion of the research
paper.
• Time constraints
Because of tight timeline researcher had to only focus on
core purpose that is buying behaviour and not other small
factors

• Limited sample size

The research was conducted in tight timeline resulting in
limited sample size.

• Respondent’s bias
All of the respondents knew NIKE as a big brand so that
itself creates bias.

• Limited literature available regarding topic that creates big

limitation.
 Research methodology

• Research design :
The researcher had adopted descriptive research design for the Present
study in order to describe the awareness level of consumers Towards
NIKE branded products.

• Data collection :
In this study data collection was done through the survey method Where
the consumers behaviour and attitude towards the NIKE branded
products Is noted through the google form.

• Sampling size :
In this study I got 64 consumer responses towards consumer behaviour
towards NIKE sportswear and footwear products.

• Sampling method
For this study both primary data and secondary data has been used. The
primary data was collected from respondents through Questionnaire that
contain list of questions related to this study. Convenient sampling
method was adopted in selecting the Respondents. Information has been
collected from a sample of 64 Respondents. The secondary data required
for the study have been Collected from the books, magazines, journals
and websites.
DATA ANALYSIS AND INTERPRETATION
 FINDINGS

1) 50% of the respondents are cricket fans.

2) 65% of the respondents are male.
3) 42.2% of the respondents are from 20-30 age group.
4) 51.6% of the respondents are from 10-20 thousand income
group.
5) 98.4% of the respondents are aware about the brand.
6) 67.2% of the respondents liked Nike as a brand.
7) Advertisement 37.5% and sports events 32.8% contribute to
the NIKE popularity.
8) 76.6% respondents are Nike product users.
9) 57.8% respondents are going to purchase NIKE product in
future.31.3% are in dilemma. Remaining might not be
interested.
10) 39.1% respondents are fan of the Nike’s products
quality.
11) 31.3% of the respondents are fans of Nike’s
Brand value.
12) 10.9% respondents buy Nike products because of
product design. 7.8% of the respondents like Nike because
of the innovative products line. 10.9% respondents like Nike
because of their creative products launches.
13) Satisfaction level towards NIKE is as follows:
a. 42.2% are just satisfied respondents.
b. 29.7% respondents are extremely satisfied.
c. 17.2% respondents were neutral.
d. 7.8% respondents were somewhat satisfied.
e. 3.1% of the respondents were not satisfied at all.
14) Interestingly and at the same time not so surprisingly
a. There was not even 1 respondent who chose “not
satisfied at all I am switching “ that tells us that brand
loyalty is strong towards NIKE.
15) 71.9% respondents will suggest buying Nike products.
16) 21.9% of the respondents may suggest buying Nike
products to others.
17) Surprisingly 6.3% of the respondents will not suggest
buying Nike products to others considering only 3.1%
respondents were not at all satisfied with the NIKE (look at
the finding 13:e).
18) Nike products are mostly popular with the young
generation (found after looking at the each response in
detail, take a look at the age chart).
19) Additionally we asked about the respondents thoughts
on the NIKE branded products.
a. The consistent response that we got is the
expensiveness of the products.
b. The one response was also about bad experience with
a brand.
c. Customer service related issues are also common with
Nike.

SUGGESTIONS

1) Nike needs to launch affordably priced products to reach

all income group consumers.
2) Nike needs to work on customer service as some
respondents complained about service related issues.
3) Maintaining brand value is important for Nike(as per
finding 11)
4) Finding 17 suggests that Nike needs to work on customer
satisfaction as it might affect the brand’s goodwill.
5) Brand loyalty needs to be maintained and improved ( look
at finding 17) or it will cause problem in future ( finding
19,10).
 CONCLUSION

In today’s world of rapidly changing technology consumer’s

preference are frequently changing. The various competitors in
this market are adopting new marketing strategies to retain their
market share. Majority of the consumers have locality for their
own brand and for meeting the changing environment the firm
has to be constantly innovative and understand the consumer’s
needs and wants. Nike needs to work on customer satisfaction ,
affordability of their products as well as introducing new
technology and innovation. Nike sportswear are facing many
competitors despite of that Nike still is a big brand in Sportswear
industry.

BIBLIOGRAPHY

1) Customercontactweekdigital.com , How Nike Combines

Customer Centricity with Brand Reputation to Stay on
Top.(3 December 2022)

2) Projectformba.blogspot.com , How phil knight created a

multi billion dollar company .( April 6 2011)
3) Internet public library, consumer behaviour, (2017)

4) UKessays ( 16 jan 2018) How Nike took over the world.

5) Start.io (27 july 2022)Marketing excellence of Nike.

APPENDICES

➢ Questionnaire we used to gather data for this research project :

• Age
• Gender
• Income
• Which sport do you like?
• Have you heard about the brand NIKE?
• Do you like NIKE as a brand ?
• How do you know about the brand?
• Have you ever purchased any NIKE product?
• Are you planning to purchase NIKE products?
• What do you like about NIKE product?
• Are you satisfied with the NIKE branded
Products ?
• Will you suggest Nike products to others?
• What are your thoughts about Nike products?

THE END