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UNIVERSITY OF MUMBAI

ICLES’ MOTILAL JHUNJHUNWALA COLLEGE

OF

ARTS, SCIENCE & COMMERCE,

VASHI, NAVI MUMBAI - 400703

PROJECT REORT ON

CONSUMER BEHAVIOR ANALYSIS OF NIKE

SUBMITTED BY

MISS BHAVNA ANIL KAMBLE

ROLL NO. 230415021 / TY B.M.S (SEM VI)

IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR

THE BACHELOR OF MANAGEMENT STUDIES

ACADEMIC YEAR 2023-24

UNDER THE GUIDANCE OF

PROF. PRACHI THAKUR


UNIVERSITY OF MUMBAI
ICLES’ MOTILAL JHUNJHUNWALA COLLEGE
OF

ARTS, SCIENCE & COMMERCE,


VASHI, NAVI MUMBAI - 400703
PROJECT REORT ON
CONSUMER BEHAVIOR ANALYSIS OF NIKE
SUBMITTED BY
BHAVNA ANIL KAMBLE
ROLL NO. 230415021 / TY B.M.S (SEM VI)

IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR


THE BACHELOR OF MANAGEMENT STUDIES
ACADEMIC YEAR 2023-24
UNDER THE GUIDANCE OF
. PROF. PRACHI THAKUR
Ref. No ICLES’MJ-(Sr./Jr.)/2023 -2024 Date______________:

CERTIFICATE

Mr ___________________BHAVNA ANIL KAMBLE___________ of

B M S Semester __VI__ has undertaken & completed the project work titled

Consumer behavior analysis of nike

During the academic year 2023 – 2024 under the guidance of

Ms __. ASSIST PROF: PRACHI THAKUR Submitted on_______________

to this college in the fulfilment of the curriculum of Bachelor of Management

Studies, University of Mumbai.

Coordinator. Guide’s Signature. External Examiner’s signature


Declaration

I the undersigned MISS BHAVNA ANIL KAMBLE declare that the work
embodied in this project work titled “CONSUMER BEHAVIOR
ANALYSIS FOR NIKE Forms my own contribution to the research work
carried out under the guidance of ASSIST PROF: PRACHI THAKUR

Wherever reference has been made to previous works of others, it has


been clearly indicated as such and included in the bibliography.

1, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules.

Name and Signature of the learner


ACKNOWLEDGMENT

To list who all have helped me in difficult because they are so numerous and the
depth is so enormous

I would like to acknowledge the following as being idealistic channel and fresh
dimensions in the completion of this project.

I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me


chance to do this

Project. I would like thank my Principal, DR. POONAM SINGH for


providing the necessary facilities Required for completion of this project.

I take this opportunity to thank our Coordinator MINU SINGH, for her moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide


ASSIST PROF: PRACHI THAKUR whose guidance and care made the
project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lately, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially My Parents and Peers who
supported me throughout my project.
EXECUTIVE SUMMARY

This black book project on consumer behavior analysis for Nike delves deep
into understanding the complex dynamics that drive consumers to choose Nike
products. The primary objective is to unravel the intricacies and factors
influencing purchasing decisions, providing valuable insights for strategic
decision-making.
The project commences by tracing the evolution of Nike's brand identity,
recognizing it as a cornerstone in shaping consumer perceptions. A detailed
examination of Nike's marketing strategies follows, highlighting the brand's
mastery in leveraging endorsements, partnerships, and innovative campaigns.
This marketing prowess becomes a focal point in understanding how Nike
maintains a prominent position in the competitive sportswear industry.
Cultural and social influences emerge as significant determinants in consumer
choices, with an exploration of trends and social media dynamics. The project
recognizes the profound impact of these elements on shaping consumer
perceptions and preferences, showcasing Nike's adaptability and resonance with
diverse audiences.
Delving into the psychological realm, the analysis uncovers the motivations
driving consumers to opt for Nike. From the desire for self-expression to the
emotional connections forged through marketing narratives, understanding these
psychological factors provides profound insights into the brand-consumer
relationship.
Market trends and sustainability considerations are scrutinized, acknowledging
Nike's role in shaping and responding to these evolving dynamics. The findings
present a comprehensive picture of how market trends and sustainability impact
consumer behavior, shedding light on Nike's position in this landscape.
The strategic implications derived from the analysis become invaluable for
Nike's future endeavors. Recommendations are crafted, emphasizing the need
for continued innovation, a community-centric approach for enhanced brand
loyalty, and cultural responsiveness to resonate with diverse global audiences.
INDEX

SR No TOPIC PAGE
NO
1 Introduction
2 History of NIKE
3 NIKE Corporate social responsibility
4 Literature of the study
5 Research methodology
6 Data Analysis
7 Limitations
8 Suggestions
9 Conclusion
10 Bibliography
Chapter 1
INTRODUCTION

In the vast and dynamic realm of consumer behavior, the choices individuals make when
selecting products are complex and multifaceted, influenced by an array of factors that
intricately weave together. This black book project embarks on a compelling journey into the
heart of consumer preferences, focusing its lens on the globally recognized sportswear giant
—Nike. The project's primary objective is to meticulously analyze the multifaceted dynamics
influencing consumers' decisions to opt for Nike products, presenting a thorough
understanding that can serve as a guide for strategic decision-making.

Nike, a name that resonates far beyond the realm of sportswear, has transcended
into a cultural icon synonymous with athleticism, innovation, and lifestyle. It
has become more than a brand; it is a symbol of identity and aspiration for
millions around the world. This project aims to dissect the elements that
contribute to the magnetic pull of Nike in the consumer market, starting with an
exploration of the evolutionary trajectory of Nike's brand identity. Recognizing
the brand as a dynamic entity that shapes consumer perceptions, this analysis
seeks to unravel the subtle nuances that make Nike a preferred choice among
consumers.
The marketing prowess of Nike stands as a pillar of its success. From high-
profile celebrity endorsements to strategic partnerships and groundbreaking
campaigns, Nike has mastered the art of creating not just products but
experiences. This project will scrutinize the strategies that have made Nike a
master of marketing, exploring the impact of these initiatives on consumer
choices. The narrative strategies employed by Nike resonate beyond the
products, fostering brand loyalty and influencing purchasing decisions.
Cultural and social influences are integral components of consumer behavior,
and in the age of social media, these dynamics have taken center stage. This
project will navigate through the intricate threads of cultural trends, examining
how social platforms serve as influential channels shaping consumer
preferences and perceptions. From viral trends to community engagement, the
project aims to uncover how Nike adapts to and leverages these cultural and
social dynamics, staying at the forefront of consumer consciousness.
Delving into the psychological dimensions of consumer choices, the project
aims to decipher the motivations that drive individuals to align themselves with
the Nike brand. Beyond the functional aspects of sportswear, this analysis will
explore the emotional connections, self-expression, and aspirational elements
that make Nike more than a product—it becomes a part of consumers' identity.

Market trends are dynamic, and sustainability considerations are increasingly


becoming pivotal in consumer choices. This project will explore how Nike
responds to and influences these trends, recognizing the brand's role in steering
industry shifts. From technological innovations to eco-friendly practices, the
analysis will uncover how these factors contribute to the brand's appeal and
influence consumer decisions.
As we embark on this exploration, each chapter will unfold layers of insights,
culminating in strategic implications and actionable recommendations for Nike.
This project is not merely an academic endeavors but a practical guide for
understanding and navigating the ever-evolving landscape of consumer
behavior for a brand that has etched itself into the fabric of global culture—
Nike.
1.OBJECTIVE OF THE STUDY

1.Understand Purchase Motivations: To investigate the factors


influencing consumers to choose Nike products, such as brand loyalty,
style preference or performance consideration

2.Analyze online vs offline purchases : To investigate the preference


and behavior of consumer when purchasing nike products online vs physical
stores.

4.Examine brand perception: To Analysis how consumer perceive the


nike brand including it’s reputation, image and association, to identify and
areas for improvement.

5.Explore consumer decision making process: To investigate the stage


consumer goes through when deciding to purchase nike products from
awareness to post purchase evolution.

6.asses competitive landscape: To Compare nikes consumer behavior


with competitors identifying areas where nike excels And potential
opportunity for improvement.

7.Study demographic variance: To Examine how consumer behavior


varies across different demographics(age, gender, income level) to tailor
marketing strategies effectively.

8. Measure customer satisfaction:To Gauge customer satisfaction levels


by exploring post purchase experience customer service interaction and product
review.

1.2 SCOPE OF THE STUDY


1.Demographic Analysis: To investigate the demographics of Nike's target
audience, including age, gender, income, and location.

2.Psychographic Analysis: To Explore the lifestyle, interests, and values of


Nike's consumers to understand the psychographic factors influencing their
choices.

3.Purchase Decision Process: To Examine the stages consumers go through


when deciding to purchase Nike products, from awareness to post-purchase
evaluations

4.BrandPerception: To Evaluate how consumers perceive the Nike


brand and the factors that contribute to its image, such as brand
loyalty and associations.

5. Advertising and Marketing Impact: To Analyse the effectiveness of


Nike's advertising and marketing strategies in influencing consumer behaviour.

6.Social Media Presence: To Investigate the role of social media in shaping


consumer opinions and behaviours related to Nike.

7.Competitive Analysis: To Compare Nike's consumer behaviour with that


of its competitors to identify unique selling points and areas for improvement

1.3 WHO IS NIKE TARGET AUDIENCE


Nike segments its target audience into four parts:
 Demographic

 Psychographic

 Behavioural

 Geographical

The demographic segment of Nike’s target audience range between 15


and 40 year-olds. The brand primarily targets teens who look up to famous
and successful athletes. Nike also targets the middle-aged group to extend
its popularity to the younger generation. For example, a 40-year-old mother
into volleyball can influence her children to maintain an active lifestyle.

Nike selects people who understand and aim for an active lifestyle in
psychographics segmentation. The brand’s audience revolves around
anyone who has a body and wants to be an athlete. For Nike, if you have a
body, then you’re an athlete. Also, if you’re constantly thinking about
sports, watching sports, or doing sports, you belong to Nike’s target market.

Additionally, behavioral segmentation pertains to how Nike makes its


target audience feel. Nike reminds users that it’s not about how its
products make you look. But it’s all about how Nike products make you feel
as an athlete.

Finally, Nike dwells on geographical location because sports vary by


location. For instance, Nike can’t market to football players in India, Finland,
or the Philippines because this sport isn’t as popular compared to the
popularity of football in Mexico, England, or Australia.

1.4 CONSUMER PSYCHOLOGICAL MOTIVATION BEHIND

PURCHASING NIKE PRODUCTS.


1 Self expression: Individuals may see Nike products as a form of self-
expression, reflecting their identity, style, and personality.

2 Brand loyalty: Established brand loyalty can drive consumers to choose Nike
due to positive past experiences and a sense of trust in the brand.

3 Perceived quality and performance: The belief that Nike products offer
superior quality and performance can be a significant motivator, aligning with
psychological desires for excellence.

4 Status and prestige: Owning Nike items may fulfill a desire for social status
and prestige, contributing to a sense of belonging to a specific lifestyle or
community.

5 Athletic identity: For those who engage in sports or fitness, wearing


Nike may enhance their athletic identity, providing motivation and
confidence.

6 Aspirational lifestyle: Nike’s branding often promotes an aspirational


lifestyle, and consumers may be motivated to align themselves with
the values and imagery associated with that lifestyle.

7 Personal empowerment: Nike's messaging often emphasizes themes of


empowerment and self-improvement, motivating consumers to purchase
products as a means of personal betterment.

8 Innovative appeal :A perception of innovation in design and technology can


attract consumers who are motivated by staying ahead of trends and being
associated with cutting-edge products.

1.5 HOW CULTURAL TRENDS AND VALUES INFLUENCE


CONSUMER CHOICES RELATED TO NIKE.
1 Fashion and style trends: Cultural preferences for certain styles and fashion
trends impact consumers' choices when selecting Nike products, as the brand
often aligns itself with current design aesthetics.

2 Athleisure culture: The growing popularity of athleisure culture has led to


increased demand for sportswear as everyday wear, influencing consumers to
choose Nike for its blend of comfort and style.

3 Celebrity and influencer culture:Cultural fascination with celebrities and


influencers often drives consumer choices. Nike's collaborations and
endorsements with popular figures can significantly impact purchasing
decisions.

4 Cultural symbolism: Nike products may hold cultural symbolism,


representing attributes such as athleticism, success, and determination, which
resonate with consumers on a cultural level.

5 Cultural diversity and inclusion: Nike's emphasis on diversity and


inclusion in its marketing campaigns aligns with contemporary cultural values,
attracting consumers who appreciate and identify with these principles.

6 Globalization and cultural fusion: Nike’s global presence and diverse


collaborations contribute to a fusion of cultural influences, making its products
appealing to a wide range of consumers with varied cultural backgrounds.

7 Youth culture: Nike's resonance with youth culture, including trends in


music, art, and technology, positions the brand as culturally relevant to younger
consumers.
1.6 SOCIAL MEDIA INFLUENCE ON CONSUMER
BEHAVIOR TOWARDS NIKE.
1 Brand visibility and awareness: Social media platforms provide a powerful
channel for Nike to maintain a strong presence, ensuring that consumers are
consistently exposed to the brand, thereby enhancing awareness and
recognition.

2 Engagement and interaction: Nike's active engagement with consumers on


social media allows for direct interaction. This engagement fosters a sense of
community and loyalty among followers, influencing their perception and
connection with the brand.

3 Influencer collaborations: Collaborations with influencers and athletes on


social media platforms can significantly impact consumer choices, as followers
often look to these figures for inspiration and product recommendations.

4 User generated content( ucg ): Consumers sharing their experiences with


Nike products through UGC on social media platforms can act as authentic
testimonials, influencing their followers' purchasing decisions.

5 Real time update and release: Social media enables Nike to share real-time
updates on product releases, events, and promotions, creating a sense of urgency
and excitement that can drive consumer engagement and purchases.
1.7 FACTORS INFLUENCING CONSUMERS RESPONSE TO
NIKE SUSTAINABILITY AND ETHICAL PRACTICES

1 Increase brand loyalty: Consumers who align with Nike's sustainability


values may exhibit increased brand loyalty Positive perceptions of ethical can
contribute to a long-term commitment to the brand.

2 Preference for sustainable products: Consumers increasingly seek


sustainable products, and Nike's initiatives in this area may attract those with a
preference for eco-friendly options. The availability of sustainable choices can
positively impact purchasing decisions.

3 Influence on millenials and gen z :Younger generations often prioritize


sustainability, and Nike's initiatives may resonate strongly with Millennials and
Gen Z consumers. Nike's commitment to ethical practices can be a key factor in
attracting and retaining these demographics.

4 Demand for transparency: Consumers increasingly demand transparency in


supply chains and ethical sourcing. Nike's efforts to communicate its
sustainability journey can build trust with consumers seeking transparency.

5 Educated consumer choice: initiative promoting sustainability and ethical


practices contribute to consumer education. Informed consumer may actively
choose nike over competitors based on their commitment to responsible
business practices.

6 Corporate social responsibility (csr) impact: Strong CSR practices,


including sustainability efforts, contribute to a positive corporate image.
Consumers may view Nike as a responsible corporate citizen, influencing their
perception of the brand.
1.7 HOW NIKE ENGAGE CUSTOMERS THROUGH
MEANINGFUL STORIES (AND YOU CAN TOO)

OVERVIEW

While Nike’s success is often attributed to its innovative products and strong
branding, Nike’s products aren’t its centrepiece. Rather, it’s how it engages its
audience through incorporating meaningful stories into its brand
communication.

SO WHAT?

While Nike (and many other brands) have every reason to talk big about their
latest technologies and products, that’s not what it does. Instead, putting
customers at the heart of its communication and empowering them to dream is
the core of its marketing strategy, and that’s how Nike succeeds.
1.8 JUST DO IT

INTRODUCTION

What do you think of when you think of Nike? Is it the swoosh logo, the “Just
Do It” slogan, or popular athletes? While those are the classics of its marketing
strategy, today, Nike is all about real customer value. For that very reason, it’s
one of the worldwide Nike doesn’t do its content marketing just to tick a box
and call it a day. Instead, it sets the bar high when it comes to having a
meaningful, relatable theme that fits in with the brand.

In this article, we’ll showcase a few of the company’s campaigns to convey how
a little storytelling goes a long way. But it isn’t just any old storytelling; it’s
storytelling that sells the emotional benefits offollowing Nike’s products in a
subtle yet compelling manner. YouYo too, can follow the same strategy to build
a loyal customer following.
1.9 MAKE EMOTIONAL CONNECTION WITH CUSTOMER

Nike campaigns induce the right emotions in their customers through carefully
crafted ads that tell meaningful stories.

Keeping in line with its “Just Do It” slogan, Nike portrays most of its customer
segments as heroes challenging themselves through the hardships of life and
fighting against any voices claiming that “they can’t,” only for Nike to step in to
tell them “Just Do It.”

For instance, in “The Toughest Athletes” campaign above, Nike spoke to


women at the most transformative stages of their lives: when they’re pregnant
and during the early months of motherhood.

Intimately capturing more than 20 mothers and bringing together female


athletes like Serena Williams, Alex Morgan, Perri Edwards, and more, Nike
touched the hearts of women as it underscored their power and strength.

In doing so, Nike, as a brand, became more meaningful in the eyes of its female
customers.

The campaign also coincided with Nike’s launch of its first maternity
collection, NikeM. On top of that, it had partnered with pre- and post-natal
expert Jane Wake to develop audio-guided workouts for new mothers in the
Nike Run Club app.

Nike listened to its customers, learned about their pain points, and genuinely
supported their relationship with sports during that transformative period, while
fully embracing their challenges.
1.10 HOW NIKE CAN HELP BRICK AND MORTAR

SURVIVE THE ECOMMERCE WAVE

Yes, e-commerce might be showing a growing trend but that does not mean that
brick and mortar retail stores are planning to give up the spotlight. In fact, brick-
and-mortar stores contribute to 94% of retail sales.

And after taking a look at a retail giant, Amazon, opening a physical store we can
see that brick-and-mortars are here to stay for a while.

You might be wondering what is it that makes customers to still go to physical


stores when online shopping is so convenient.

Is it the nice smile of a sales rep? Perhaps a professional advice from the assistant?
Or maybe just an excuse to leave the house?

All of these are reasons why people still enjoy brick-and-mortar stores but there are
two core things that made e-commerce giants consider having their own space in
the real world.

To better understand this let’s take a look at Nike, a sportswear company that
knows the secret recipe that helps retail businesses with physical space to survive
the huge e-commerce wave!

1.11 NIKE AND THE ECOMMERCE WAVE


You might have read about Apple’s retail success or Tesla’s customer
experience but this multinational sportswear corporation takes things to a different
level. When it comes to first-class customer experience Nike just does it!After
entering Nike’s 55,000 square foot store in the heart of New York, customers will
leave with such experiences that they will never forget in their life.A visitor, initially
entering to check the new model of sneakers will be exposed to the wide-variety of
experiences. What appeared to be a half basketball court inside the store turned out
to actually be one! A court Surrounded with high resolution digital screens for a
better experience.Or maybe customer wants to buy new running shoes but isn’t sure
about how it feels? Nike’s store offers a running trial zone for its customers where
one can test the shoe of their choice on a treadmill with a digital screen offering
different running track views such as Central Park or West Side Highway.However,
the above-mentioned things were not enough for Nike. The company has always
been famous for its innovation and willingness to go the extra mile for its customers
(exactly why it’s one of the leaders in the industry).The company understands that
the best way to create a memorable customer experience is through personalization!
That’s why if you buy a shoe and want some personal touch on it, without leaving
the store you have an opportunity to engrave iconic NYC symbols on it with laser
tools located at the shop itself! Let’s break down the most important aspects that
help Nike’s brick-and-mortars to stand strong in digital age.

1.12 BUILDING CUSTOMER EXPERIENCE


It there is one thing that helps Nike’s brick-and-mortar to survive it definitely is
customer experience. More companies realized that

attracting customers with discount coupons and vouchers is inefficient and


insufficient today.

Not that they are bad but those are things that online storesoffer as well so why
should a customer bother and visit your physical store when it takes him/her one
click to achieve the same result.

The real answer is customer experience, Just like Nike’s. It is the advantage that
physical locations have over online retailers. Today, people shop for experiences
rather than goods. So providing it to your client’s will guarantee the safety of your
brick-and-mortar store. What do we mean exactly?

One of the things that differentiate us from robots are genuine emotions, and we
strongly value them. We connect every experience with the certain type of emotion
and shopping is no exception. The technological innovation has not advanced at
such a level that shopping at e-commerce would win over physical shopping when
it comes to emotions.

Think about it, imagine children visiting the toy shops, running around while
exploring and testing new toys. Or perhaps a bride before her wedding trying on a
wedding dress with her friends.

What about a person buying a car? Visiting the store, sitting in the car and testing
the feeling of it? Do you think these emotions, feelings and experiences can be
replaced by e-commerce? Not yet at least.

Simply looking at the screen is just not enough to charge you with positive energy.
One has to experience it in person and that is the reason why customers keep
visiting the brick-and-mortar stores.Some brick-and-mortar retailers began
understanding that price was not the reason that brought customers to their shops.
You must have noticed yourself small minibars at the grocery stores where people
enjoy the food or drinks that they have bought.

This is one of the strategies the grocery stores uses to make customers purchasing
journey all about their experience. Such facilities challenge the online buying world
with free degustations as well as dining bars inside the store!.

1.13 IMPORTANCE OF CONSUMER BEHAVIOR


1 PRODUCT DEVELOPMENT
2 PRICE OPTIMIZATION
3 CUSTOMERS LOYALTY PROGRAMS

• PRODUCT DEVELOPMENT
Nike's product development is strategically designed to influence and captivate
customers. Here are key aspects of Nike's approach to product development to
sway consumer behavior:
1 Innovation and Technology: Nike consistently invests in cutting-edge
technologies to enhance product performance. Innovations like Nike Air
cushioning, Flyknit technology, and React foam not only improve functionality
but also create a sense of exclusivity and desirability among consumers.

2 Collaborations and Limited Editions: Collaborations with renowned


designers, celebrities, and athletes contribute to limited-edition releases. These
exclusive products generate buzz and a sense of urgency, enticing consumers
who seek unique and collectible items.

3 Athlete Endorsements: Partnering with high-profile athletes allows Nike to


showcase its products in real-world, high-performance scenarios. This not only
enhances the brand's credibility but also inspires consumers to associate the
products with top-tier athletic achievements.

4 Responsive Design: Nike pays attention to consumer feedback and market


trends, adapting its product designs accordingly. This responsiveness ensures
that products stay relevant and aligned with evolving consumer preferences.

5 Continuous Iteration and Improvement: Nike follows a philosophy of


continuous improvement. Iterative releases and updates keep the product lineup
fresh, encouraging repeat purchases and maintaining consumer interest over
time.

• PRICE OPTIMIZATION
.employs various strategies for price optimization to attract and retain customers
while maximizing revenue. Here are key aspects of Nike's approach:

1 Tiered Pricing Strategy: Nike adopts a tiered pricing model, offering


products at different price points. This includes premium lines like NikeLab for
exclusive releases, mid-range products for the general consumer, and more
budget-friendly options, ensuring a broad appeal across diverse customer
segments.

2 Limited Editions and Exclusivity: Limited edition releases create a sense of


exclusivity and scarcity, allowing Nike to command higher prices for these
special products. Consumers are often willing to pay a premium for unique and
collectible items.

3 Value-based Pricing: Nike prices its products based on perceived value


rather than just production costs. This value-driven approach considers factors
such as brand reputation, innovation, and design, allowing Nike to position
itself as a premium brand in the athletic apparel and footwear market.

4 Promotional Pricing and Discounts: Nike strategically uses promotional


pricing, discounts, and sales events to stimulate demand and attract price-
sensitive customers. This approach encourages purchases during specific
periods and helps clear inventory.

5 Dynamic Pricing: Nike employs dynamic pricing, adjusting prices based yon
various factors like demand, inventory levels, and market trends. This ensures
that prices are responsive to changing market conditions and customer behavior.

6 Seasonal Pricing: Nike adjusts prices seasonally, aligning with consumer


preferences for different sports and activities. For example, prices for running
shoes might be emphasized during marathon season, while basketball products
may see promotions during the NBA season
•CUSTOMERS LOYALTY PROGRAM
Nike offers a customer loyalty program called "Nike Membership," which
provides various benefits to its members. Here are key features of the Nike
Membership program:

1 Exclusive Access to Products: Nike Members gain early access to selected


products, including new releases and limited-edition items. This exclusivity
creates a sense of privilege for members.

2 Personalized Product Recommendations: The program offers personalized


product recommendations based on members' preferences, purchase history, and
activity on the Nike app. This customization enhances the shopping experience
for individual members.

3 Member-Only Events: Nike hosts special events exclusively for members,


providing unique experiences such as early access to events, athlete interactions,
or exclusive product launches. These events foster a sense of community among
Nike enthusiasts.

4 Birthday Rewards: Nike Members receive special birthday rewards, which


may include discounts, exclusive products, or other personalized offerings. This
gesture adds a personal touch and encourages members to engage with the
brand during their special day.

5 Access to Training Content: Nike Membership provides access to exclusive


training content, including workout plans, tips, and guidance from professional
athletes. This additional value aligns with Nike's focus on promoting an active
lifestyle.

6 Free Shipping and Easy Returns: Members enjoy free standard shipping on
Nike.com, making online shopping more convenient. The program also offers
easy returns, enhancing the overall customer experience.222
2 HISTORY OF NIKE

It doesn't matter whether you're into sneakers, music, fashion or sports, chances
are you'll be familiar with Nike. Since its 1964 inception, American-born Nike
has seemingly dominated the sneaker and trainer market with an abundance of
designs, functional pieces and clothing styles, but where did it come from and
how did it grow into the world's largest footwear company?

There's no doubt if you're searching for the history of Nike there are a million
questions you need answering, so here at The Sole Supplier, we've made it our
mission to bring you the definitive guide of the Nike brand's history. From
humble beginnings to the name choice, to some of its most iconic products,
we're taking a look at a timeline of some of Nike's iconic moments that helped
shape the brand into the force it is today.

Humble beginning
story begins with two men named Bill Bowerman and Phil Knight. Bill
Bowerman was a track and field coach at The University of Oregon who re-
united with his previous student Phil Knight after he had a brief stint at Stanford
University. Bowerman was fascinated with the idea of optimising athletic
footwear and running shoes for performance, and so in turn he began tinkering
with different models after picking up some tricks and tips from a local cobbler.
On January 25th 1964, the duo decided to found Blue Ribbon Sports, a Eugene
Oregon-based footwear company which for many years operated out the back of
a car at track meets.
The company began as a distributor for a range of imported shoes - namely
Onitsuka Tiger. Knight was amazed with the quality of Onitsuka Co.'s trainers
and found them to be a breath of fresh air compared to the German dominated
sneaker market. While the world was caught up deciding between Puma and
Adidas, Phil Knight looked to Onitsuka Tiger and Japan for a new, premium
running trainer.
After a few years of being Onitsuka's sole distributor in the US, a rise in
competition led Knight and Bowerman to think about how they would do things
differently. The companies drifted away from one another as Blue Ribbon
Sports became Nike in 1971 and prepared to launch their own trainer.

Bowerman had always created prototype trainers for the athletes he coach. After
pulling apart pairs of Onitsuka Tiger running shoes and thinking of ways he
would do things differently, he started working on what would become the first
ever Nike sneaker.
How did Nike gets its name
Changing the name of Blue Ribbon Sports to Nike was the idea of the
company's first ever employee, Jess Johnson. The brand's iconic Swoosh logo
had already been designed by Carolyn Davidson, a student at Portland
University, however the company still had no name. Drawing inspiration from
the design of the Swoosh, Johnson suggested the name Nike, named after the
winged Greek goddess of victory. The rest is history.

What was the first Nike shoes?


The first Nike shoe was nicknamed the 'Moon Shoe' and was made in
Bowerman's waffle iron. This waffle sole design came into fruition after Bill
Bowerman was eating breakfast and wondering if the grooves in his waffle
would work for additional traction when playing sports. After a few test runs of
the waffle iron, the Waffle Trainer was eventually born and found almost
immediate success due to its grippy and performance-driven design. This first
prototype model was technically the first Nike shoe and sold at Sotheby's for
almost $450,000.
The first commercial Nike shoe was a variation of the 'Moon Shoe' with a more
refined design. The shoe would go on to be called the Nike Waffle Racer and
was first handed out to athletes at US track events.

Although the Waffle Racer was well-designed and a minor success, it did not
launch Nike to the same heights as Adidas or Puma just yet. However, a new
design did help put them on the right trajectory.
The duo found success with a design originally called the 'Aztec'. The name had
to be changed due to Adidas having a similarly named sneaker, so to reference
history and the fall of the Aztecs, the shoe became the Nike Cortez. The Cortez
was a great success after being debuted in the Mexico Games due to its
advanced design and technology and helped Nike on their way to become the
sneaker giant we know today.

The Cortez has a confusing past, as it was originally designed and produced by
Onitsuka Co. before Knight and Bowerman decided to release their own version
under the name Nike. When Onitsuka Co. found out about Nike selling the
Cortez model, the issue escalated and ended in a court battle. The argument was
settled in court, with the judge ruling that both brands could sell their own
iteration of the Cortez under their name.
Gaining traction
By 1976, Nike was ready to continue on with expansion and so they hired John
Brown and Partners, a Seattle based advertising company to help with gaining
further exposure. A year later, the agency created the first brand ad for Nike
entitled "There is No Finish Line". Though the ad didn't contain any actual Nike
shoes up close, it was seemingly a success and further helped propel the brand
into the stratosphere. By 1980, Nike had attained a whopping 50% market share
in the U.S. athletic shoe market and then went public as a company later that
year.
Following the popularity of its sneakers, Nike decided to expand out into the
clothing world in 1979 and made a range of athletic clothing and sportswear.
One of its first pieces was the Windrunner, a lightweight jacket that quickly
became a favourite both on the street and on the track due to its modern chevron
style design.

In 1982, Nike took on Weiden+Kennedy as its global advertising agency to


further its push into other territories. While creating many print and television
advertisements during the 80s, co-found of the group Dan Weiden eventually
came up with the famous slogan "Just Do It" for a 1988 campaign. Oddly
enough, Weiden credits murderer Gary Gilmore for the saying due to his famous
line of "Lets do it" prior to his execution. This saying would eventually be
chosen by Advertising Age as one of the top 5 slogans of the 20th century.

The Jorden era


A few years later in 1984, Nike signed a 21-year-old upcoming basketball
player by the name of Michael Jordan. Despite being a rookie in the NBA,
Jordan dismissed the possibility of signing with direct competitors Reebok or
Converse and decided instead to sign for Nike for the fee of $500,000 a year.

The signing was spurred on by the promise that Nike would give MJ his own
signature line and so, Air Jordan was born. Proceeding the signing, Jordan
would play a few games in the Nike Air Ship sneaker, but that would eventually
be banned due to the colourway not adhering to NBA standards of the time.
Instead, Nike designers Peter Moore, Tinker Hatfield, and Bruce Kilgore all
decided to focus their energy elsewhere and Air Jordan 1 was born.
The original Air Jordan 1 sneakers were designed exclusively for Michael
Jordan in late 1984 and would eventually go on general sale in April of 1985.
The shoe itself featured a high-top construction, the famous Nike Swoosh and a
black/red "Bred" colourway.

In 1987, Nike launched a new range of sneakers starting with the Air Max 1.
These sneakers were designed primarily by Tinker Hatfield and featured the
first physical encapsulation of air within their cushioned midsoles. The original
colourway arrived in a University Red/White colourway, and to this day is a
silhouette desired by sneakerheads around the world even today.

In 1990, Nike moved into its eight-building world headquarters campus in


Beaverton Oregon. The sprawling 400 acre land of the Beaverton HQ allowed
access for 11,000 employees as well as Nike Sports Research lab for developing
all the latest technology, a Nike Museum to showcase relics of the past, three
fitness centres and facilities for sponsored athletes, and a range of sports fields,
tracks and running paths Alongside this, the third Nike Air Max arrived in the
form of the Nike Air Max 90. This particular model featured a chunkier
construction as well as a more futuristic design and style.

GLOBAL DOMINATION
Furthering on with the 1990s efforts, Nike opened its first range of Niketown
chain stores, the first of which arrived in Portland Oregon. These distinct stores
celebrated some of Nike's sponsored athletes such as Micheal Jordan while
offering a full range of exclusive Nike products for all sorts of sports. In 1996,
Nike signed famed golfing superstar Tiger Woods to their roster. This move
helped Nike dive deeper into new territory within golf and spurred a fresh
collection of fans across the globe.
1997 saw Nike's foray into Skateboarding with a new line of sneakers featuring
increased padding, Zoom Air insoles and enhanced materials, ideal for
withstanding heavy impacts and skateboarding wear and tear. Due to the success
of this line, Nike decided to double-down on its foray into skateboarding and in
2001 released the Nike SB range. Quickly after the launch of Nike SB, the
brand decided to release a collection of signature Dunks for each of its pro
skaters. This latest Dunk SB iteration was originally a basketball sneaker but
instead came equipped with a padded tongue, thicker laces and robust
construction to ensure maximum comfort and durability.

With further expansion in mind and Michael Jordan becoming a household


name, in 2003 Nike decided to sign basketball legend Lebron James and the late
and great Kobe Bryant to their roster. This push into basketball would solidify
the brand as the leading shoe sponsor within the NBA. The next year, Co-
founder Phil Knight would step down as tee chairman of Nike but retain a
chairman role. He would be succeeded by William Perez, an American
businessman, but Perez would only last 2 years in the role due to on-going
disagreements with Knight on how the business was ran. In 2005, Nike would
sign tennis player Rafael Nadal for sponsorship and eventually his own range of
clothing apparel.
In 2008, Nike would acquire English brand Umbro, a brand mostly known for
its famous football kits for $580 million. This move would further help Nike's
takeover of the football market and expand its existing range of football apparel
and sports equipment. In 2012 and 2015, Nike would become the official
supplier of both the NFL and NBA, ensuring all kits and uniforms worn by
players, officials and personal.

As it stands in 2021, Nike, Inc. exists as the biggest and largest supplier of
athletic shoes, apparel and other sporting equipment. The group also owns other
well-known brands such as Jordan and Converse.
.1 Nike Timeline

1964 - Phil Knight and Bill Bowerman found Blue Ribbon Sports.

1971 - Cutting ties with Onitsuka Tiger (now Asics), Blue Ribbon Sports
becomes Nike Inc., using swoosh logo created by Portland State University
student Carolyn Davis for $35

1971 - Bowerman comes up with iconic sole pattern for Waffle Trainers after
putting rubber into a waffle iron

1972 - Romanian tennis player Ilie Nastase becomes the first athlete to sign an
endorsement with Nike.

1979 - Nike introduces patented "Air" technology with new Tailwind shoe.

1980- Nike completes IPO with a price of 18 cents a share.

1984 - Nike signs Michael Jordan, launching Air Jordan series.

1987 - Nike drops ad for new Air Max shoes set to The Beatles' "Revolution,"
making it the first ad to use the band's music.

1988 - First "Just Do It" campaign launches with ad featuring 80-year-old


running icon Walter Stack running across the Golden Gate Bridge.

1989 - "Bo Knows" ad campaign drops featuring baseball and football star Bo
Jackson.
1990 - First Niketown store opens in Portland, Oregon.

1991 - Activist Jeff Ballinger publishes report exposing low wages and poor
working conditions among Indonesian Nike factories. Nike responds by
instating its first factory codes of conduct.

1996 - Nike signs Tiger Woods.

1998 - In the face of widespread protest, Nike raises the minimum age of its
workers, increases monitoring, and adopts U.S. OSHA clean-air standards in
overseas factories.

1999 - Nike co-founder Bill Bowerman dies at 88.

2002 - Nike acquires surf-apparel company Hurley.

2003 - Nike signs Lebron James and Kobe Bryant.

2004 - Nike acquires Converse for $309 million.

2004 - Phil Knight steps down as CEO and president of Nike, but retains
chairman role as William D. Perez becomes the company's new CEO.

2008 - Nike signs Derek Jeter.

2012 - Nike becomes official supplier for NFL apparel.

2015 - Nike becomes official supplier for NBA apparel


2018 - Nike unveils ad campaign featuring athlete and political activist Colin
Kaepernick, garnering a mix of public approval and backlash

2.2 CONTROVERSY

Sweatshops

Nike has faced a long history of controversy over its labor practices. The
company was founded on a principle of finding cheaper labor to produce same-
quality goods and followed this unfailingly, till it finally came back to bite
them. Nike’s factories were initially in Japan, but then moved to cheaper labor
in South Korea, China, and Taiwan. As the economies of these countries
developed, Nike again shifted, moving away from labor in South Korea and
Taiwan to focus on China, Indonesia, and Vietnam.Not much was noted of this
until activist Jeff Ballinger published a report in 1991, documenting the poor
working conditions of Nike's operations across Indonesia. This was followed
with a popular article in Harper's Magazine, detailing the life of an Indonesian
Nike employee who worked for 14 cents an hour.Outrage fermented among the
public, with protests against the shoe ware giant at the 1992 Olympics and an
increased media scrutiny on the plight of sweatshop workers. This came at the
same time the company sought to expand its Niketown retail stores, resulting in
mass protests around the planned expansions.With protests around college
campuses, calls for boycotting the company, and pressure put on its stars like
Michael Jordan to denounce the brand, Nike made a concerted effort in 1998 to
improve the labor conditions of its factories.It included raising the minimum
age among workers, increasing the monitoring of factory conditions, and
enforcing U.S. standards for clean air. This was followed by Nike's creation of
the Fair Labor Association in 1999, and audit of roughly 600 factories between
2002-2004, and the public disclosure of all of its factory locations in
2005.While reports of abuse at the Nike factories still persist, many human
rights activists have acknowledged Nike's efforts to have minimized the worst
problems at these factories, and the public outcry today over the company's
labor conditions is a shadow of what it once was.

Colin Kaepernick

On Labor Day of 2018, Nike made a huge splash, tweeting a photo of NFL
player Colin Kaepernick as the new face of its brand.

The 49ers quarterback had become a lightning rod for controversy after being
the first football player to take a knee during the national anthem in protest of
police brutality toward black Americans. He received a mix of support and
backlash from the public, with some calling him a hero and others criticizing his
actions as "un-American."

This controversy only intensified with Donald Trump making criticism of the
protest Kaepernick started a central talking point in his campaign and, later,
presidency. 49ers management consequently did not renew Kaepernick's
contract and no other NFL team signed him. Fittingly, the ad overlay of the
black-and-white photo of Kaepernick's face with the text, "Believe in
something. Even if it means sacrificing everything," and the classic Nike
slogan, "Just Do It." below.

The ad garnered a predictable mix of support and controversy. Some, seeing


Nike's endorsement of Kaepernick as a betrayal of patriotic values, chose to
quite publicly announce their boycott of Nike by posting videos of themselves
burning their Nike shoes.
This proved largely ineffectual, with most people mocking Nike boycotters on
social media, and the company's stock soaring, increasing by over $6 billion less
than a month after the campaign began.

2.3 HOW GREEN IS NIKE

While Nike's taken strides to increase its eco-friendliness, joining the


Sustainable Apparel Commission and implementing a number of reusable
materials in its clothing, it still has a way to go.

The primary environmental criticism following Nike has been its refusal to
eliminate hazardous materials from its supply chain. As pointed out by
Greenpeace, this affects everything from factory workers to waterways to
consumers. The hazardous chemicals pollute the environment, threaten to
poison those who work with them, and allow a potential health risk to persist
among users of Nike's apparel.

Nike has claimed to be working toward elimination of these toxic chemicals.


While these claims have been met with dubiousness over the past couple years,
in 2018, Nike showed some serious signs of growth, expanding its PFC-freengine
optimization, significantly influenced consumer behaviour and purchase
decisions. They found that FMCG retailers leveraging digital marketing
strategies experienced higher brand visibility, increased customer engagement,
and improved sales performance compared to those relying solely on traditional
marketing approaches. The study highlighted the importance of integrating
digital marketing into FMCG retail strategies to stay competitive in the rapidly
evolving market lands.

How did Nike develop its original brand identity?


The Nike Swoosh was designed in 1971 by Carolyn Davidson, a graphic design
student at Portland State University. Knight, then an assistant professor at PSU,
wanted a logo that conveyed motion and agreed on Davidson’s design, paying
her just $35 for her work.original Nike logo drawings

Over the years, the Nike Swoosh has undergone subtle but significant changes,
evolving with the brand while maintaining its core identity. This terrific video is
an excellent summary of the history of the Swoosh.Over the years, the Nike
Swoosh has undergone subtle but significant changes, evolving with the brand
while maintaining its core identity. This terrific video is an excellent summary
of the history of the Swoosh.

Nike logo: 1971 to 1978

Initially, the Swoosh was accompanied by the word ‘Nike’ in a bold font.

In the late 1970s, the logo appeared solo on Nike’s footwear, representing the
brand’s growing recognition.

Nike logo: 1978 to 1985

In 1978, Nike transformed its logo, transitioning the Swoosh from a line
drawing to a solid, black checkmark. Concurrently, the Nike wordmark evolved
from a cursive script to an italicized, all-caps format in Futura Bold font.

By the 1980s, the Nike Swoosh had become a symbol of global athletic
excellence and performance. The logo appeared in various colors and designs,
adapting to different product lines while maintaining its fundamental shape.

Nike logo: 1985 to 1995

In 1985, Nike’s 1978 logo underwent a color transformation, adopting white


lettering and a white Swoosh set against a vivid red background. This striking
color scheme added a new layer of visual impact to the brand’s identity.
Nike logo: 1995 to the present

By 1995, the Nike Swoosh had achieved such widespread recognition that the
company could confidently use the symbol without the accompanying
wordmark.

This transition to a symbol-only logo, also known as a brandmark or emblem,


facilitated a more versatile application, particularly in embedding or
embroidering the design on Nike shoes and apparel.

The move to a symbol-only logo carried significant advantages. It transcended


linguistic barriers, making the logo universally recognizable—an invaluable
asset for Nike, a brand with a global presence and an ethos of transcending
cultural and geographical borders.

Moreover, using a symbol taps into the human brain’s automatic response to
images, fostering a deeper psychological connection with the brand. This shift
towards a more image-centric branding aligned with the neurological basis that
people often react more profoundly and instinctively to visual stimuli than to
text.

Beginning in 1988, this logo variation was frequently paired with Nike’s newly
introduced and now-famous slogan, ‘Just Do It.’ This combination further
solidified Nike’s brand image, merging its recognizable logo with a
motivational catchphrase that resonated globally.

Nike logo: 1995 to the present


By 1995, the Nike Swoosh had achieved such widespread recognition that the
company could confidently use the symbol without the accompanying
wordmark. This transition to a symbol-only logo, also known as a brandmark or
emblem, facilitated a more versatile application, particularly in embedding or
embroidering the design on Nike shoes and apparel.

sustainability. The ‘Reuse-a-Shoe’ program, started in 1993, recycles old


athletic shoes into new Nike products, reducing waste significantly.

Cultural impact beyond sports. The Nike Swoosh has transcended sports to
become a cultural icon, appearing in movies, music, and political movements,
representing more than athletic excellence.

Nike’s customization revolution. In 1999, Nike introduced NIKEiD, a


revolutionary service allowing customers to customize their Nike footwear,
including color and material choices, paving the way for personalized sports
apparel.

Nike’s athletic sponsorships. Nike’s strategy of sponsoring athletes has been


pivotal in its marketing. They sponsored Romanian tennis player Ilie Năstase in
1972, the first professional athlete to endorse Nike, and later global icons like
Michael Jordan and Serena WillinaThe Nike Swoosh is more than just a logo;
itsymbolizes athletic prowess, innovation, and global culture
3 NIKE CORPORATE SOCIAL
RESPONSIBILITY :STRIVING FOR IMPACT,

Nike, Inc., a global leader in sportswear and athletic footwear, has demonstrated
a steadfast commitment to corporate social responsibility (CSR), aligning its
business practices with ethical, environmental, and social considerations. This
narrative explores Nike's multifaceted approach to CSR, examining key areas
where the company has made significant strides.

Sustainable Practices and Innovation:

At the heart of Nike's CSR initiatives lies a dedication to sustainability. The


company's "Move to Zero" initiative stands as a testament to its commitment to
achieving zero carbon and waste impact. Nike has embraced circular design
principles, incorporating eco-friendly materials and reducing waste in its
manufacturing processes. Through innovation, Nike continually introduces
sustainable technologies, contributing to a more environmentally conscious
industry.

Labor Practices and Supply Chain Ethics: Nike, having faced scrutiny in the
past over labor practices in its supply chain, has implemented robust measures
to improve conditions for workers. The company now upholds stringent
standards and codes of conduct for its global network of suppliers. This ensures
ethical labor practices, aligning with international norms. By addressing
historical controversies, Nike has worked towards creating a supply chain
characterized by fairness and respect for human rights.

Community Engagement and Philanthropy:


Nike extends its influence beyond the realm of sportswear through impactful
community engagement and philanthropy. Programs like the Nike Community
Impact Fund exemplify the company's commitment to addressing social
challenges at the grassroots level. By leveraging its resources, Nike supports
initiatives that promote access to sports, education, and community
development. Through strategic partnerships, the company strives to make a
positive impact on local communities.

Diversity and Inclusion Initiatives:

Recognizing the importance of diversity and inclusion, Nike has implemented


initiatives aimed at fostering an inclusive workplace. The company values
diversity within its workforce and has implemented programs to support
underrepresented groups. Nike's commitment to diversity goes beyond internal
practices, influencing its broader role in promoting inclusivity within the sports
and corporate sectors.

Transparency and Reporting:

Nike places a premium on transparency, regularly reporting its progress in the


realm of CSR. The company publishes detailed sustainability reports that
provide insights into its environmental and social performance. By sharing this
information, Nike invites stakeholders to assess its CSR efforts and holds itself
accountable for its impact on the world.

Innovation for Social Impact:

Nike's innovation extends beyond product design to initiatives that have a


positive social impact. The "Nike Grind" program exemplifies this commitment
by repurposing waste materials into new products, contributing to a more
circular economy. This innovative approach aligns with the company's broader
goal of not just creating products but creating positive change.
4 LITERATURE OF THE STUDY

The purpose of my black book project is to conduct a comprehensive consumer


behavior analysis focused on Nike. This study aims to delve into the intricacies
of how consumers engage with Nike products, exploring their preferences,
motivations, and decision-making processes. By unravelling the dynamics of
consumer behavior, the project seeks to provide valuable insights for Nike to
refine marketing strategies, enhance brand loyalty, and stay attuned to the
evolving demands of the sportswear market. Through this analysis, we aim to
contribute to a deeper understanding of the factors influencing consumer
choices within the context of Nike, fostering informed decision-making and
strategic development for the company.

Studying consumer behavior in the context of Nike's industry and products is


crucial for several reasons. Firstly, it provides insights into the preferences,
motivations, and decision-making processes of consumers, allowing Nike to
tailor its products to meet evolving demands and stay ahead in the competitive
sportswear market. Understanding consumer behavior also guides Nike in
crafting effective marketing strategies. It enables the company to resonate with
its target audience through personalized and relevant campaigns, leveraging
factors that influence consumer choices, such as brand perception, cultural
trends, and digital engagement. Moreover, a comprehensive consumer behavior
analysis is instrumental in building and maintaining brand loyalty. By
identifying what resonates with consumers and addressing potential concerns,
Nike can foster a strong and enduring connection with its customer base, crucial
in an industry where brand loyalty significantly influences purchasing
decisions.In the digital age, where e-commerce plays a pivotal role, insights into
online consumer behavior are essential. Analyzing how consumers interact with
Nike's online platforms helps optimize the online shopping experience,
contributing to increased customer satisfaction and loyalty.

4.1 Marketing Mix of Nike (Extended 7Ps)

Nike offers a broad product range. Its brand image and popularity have grown
stronger with time. Its main competitors are Adidas, Reebok, Under Armour,
FILA, Sketchers, New Balance, and Puma. The company targets young
customers mainly. Nike customers are primarily in the 15-45 age group. Its
target market also includes female customers as well as teenagers. However, to
grow its appeal among younger customers, the company has introduced an
excellent range of products for kids. You will see young celebs and athletes in
Nike ads as well as teenagers.

Here is its marketing mix that analyses the seven P’s – Product, Price, Place,
Promotions, People, Processes, and Physical evidence.

Product:
Nike offers a vast range of products, including sports shoes, apparel, gear, and
accessories. It makes and sells products for men, women, boys, and girls. It
also offers a broad range of shoes of varieties and styles suited for use in various
sports. For example, there are sports shoes for basketball, football, running,
gym, and even lifestyle shoes available from Nike. It also offers sportswear like
tech fleece and Windrunner for athletes, shorts, t-shirts, and pants.

Some of the main categories of products for men by Nike are as follows:

1. Shoes
2. Compression and Nike Pro
3. Tops and Shirts
4. Hoodies and Pullovers
5. Jackets and vests
6. Pants and tights
7. Shorts
8. Surf and swimwear
9. Socks
10.Accessories and equipment

Place:
Nike sells its products to customers globally through both online and offline
channels. These products are available at the brand’s retail outlets and its
distribution canters operating globally. It sells its products to wholesalers both
in the US and international markets. Its direct to customer channels include both
inline and factory retail outlets as well as online sales through its website.
Nike’s global distribution system is also divided into global brand divisions.

The company has its headquarters in Beaverton, Oregon, United States.


However, the company has extended its business network globally and sells to
customers in nearly all regions of the globe through physical and online
channels including e-commerce websites such as Amazon. The company also
has a large and strong supplier network. It has outsourced nearly all its
production to external suppliers. As of 2021, Nike operated a total of 1,048
stores throughout the world. 325 of these stores were located in the US alone.

Price:
One of the critical differentiators for Nike is its ability to charge higher prices
than its competitors. However, this ability is based on the premium quality of its
products. Its products are good looking, elegantly crafted, suited for sports use,
and durable. The premium quality of its products enables it to charge premium
prices for them. However, its popularity and brand image plus the customer
loyalty it enjoys are also important factors that support its premium pricing.

Nike does not set prices according to the market condition or the costs of
manufacturing. Instead, it sets prices according to the estimated value of a
product. Some more shoe brands and the leading competitors of Nike have also
introduced an excellent range of shoes in the premium price segment.

While there is price competition in the industry and prices matter for a large part
of middle-class customers, Nike’s pricing strategy has never impeded growth,
and it continues to rule as the largest shoe brand. Its marketing strategy is one of
the key factors that the company continues to find growth despite the premium
prices. It enjoys a large and loyal customer base as well as the strongest position
in the shoe industry. Marketing continues to drive the demand for Nike
products.

Promotion
Nike’s logo and slogan differentiate it from others and give the brand a distinct
identity in the crowd of the brands. It provides the brand with a uniqueness.
Apart from that, the brand utilizes a mix of other strategies for the promotion of
its products and brand. Nike is a well-known company, and it gains a lot of
publicity from the news resources. The brand promotes itself through a mix of
traditional and modern promotional strategies. It advertises its products through
online and offline channels. Apart from that, Nike uses sponsorships of sports
events and sports personalities for the promotion of its products.

Nike has grown its use of digital marketing channels for the promotion of its
products. The company uses digital video marketing in plenty to promote Nike
products. It frequently posts videos to YouTube, including educational and
promotional videos. The promotional videos of Nike mostly include athletes and
sports personalities.

However, many of these are motivational videos that are targeted at the sports
community mainly. Its marketing strategy and methods have been appreciated
widely for their effectiveness. Nike has also maintained a strong brand image.
Apart from marketing and product quality, its investment in CSR has also
helped it strengthen its social image. These things are absolutely critical for
large businesses because of the public’s concern for the social image of the
businesses they are buying from.

People:
Human resource management has emerged as a critical area in the 21st century.
Companies need to focus on managing their human capital strategically to
maintain their competitive advantage. It is because their people are their
primary source of competitive advantage on which a firm’s other critical
competitive advantages are based. The growth of a company depends on the
skills and knowledge of its people as well as their performance.
As of 2020, the company employed 75,400 people. Nike invests in its people to
help them find faster career growth and development. Apart from offering them
training and better career management tools, Nike also involves them in its CSR
programs. The company has formed human resource policies that maximize job
satisfaction for the employees. Apart from competitive salaries and benefits
packages, it also uses modern training tools and techniques to offer its
employees opportunities for improving their performance.

Processes:
Nike has outsourced nearly all of its production to external suppliers. It leaves
the company free to focus on all the other essential business processes. The
faster growth and business expansion of the company is because of its focus on
marketing, product design and innovation. The company is primarily involved
in marketing, distribution, and store operations. Nike has optimized its value
chain for maximizing output and faster growth. It invests a significant sum each
year in marketing as well as research and development to achieve more growth.
The company’s focus on higher efficiency of business processes has also helped
it maintain its growth momentum.

Physical Evidence:
Nike is a global business that sells its products in nearly all corners of the globe.
Apart from its products and the physical infrastructure of the organization, the
company’s packaging is also the physical evidence of its business operations.
Nike is a physical business, and therefore, you will come across a lot of physical
evidence when navigating its business system.
4.2 CONSUMER DECISION PROCESS

The consumer decision process (CDP) model is important for making marketing
decision; CDP is the stage of consumer goes through before, during, and after
buying the product or service in decision making processes. In first stage of
CDP starts with need recognition, the buyers understand what their problem or
need in between current motivation state and desired motivation state. For
example, I saw a commercial for brand new series pair of Nike shoe, to
stimulate me that I need a new Nike shoe. Customer may need to pass through
the stage step by step in every purchase. However, in daily purchase customer
can skip the stage of information search and evaluation straight to purchase
decision. For example, I feeling hungry need to buy food and I straight forward
to make purchase decision to buy my favourite food McDonald.
The next stage of CDP is information search; under information search
consumers can search information according to internal or external sources of
information. Internal sources of information are the information retrieved
knowledge from memory and the information may be based on a person past
experience, past conversation, or articles read previously. External sources of
information can get from environment can be the new sources of information
and include friends, family, salesperson, advertisements, brochures, websites,
and media article. The marketers will identify which target markets of
information sources are most influential, the impact of these sources of
information will depend on the products and customers. For example, I want to
buy new pair of shoe and before I buy I will take advice from my friends of
their experience on different brands of shoe and search information about the
company brand product quality.
The third stage of CDP model is evaluation of alternatives, which the consumer
evaluation alternative bounds in the choice set by using information. Evaluation
is an important determinant of the degree is whether the customers feel
“involved” in the product. By involvement, that means the extent of perceived
relevance and importance that accompanies with the own choice. The
involvement had categories into low-involvement purchases and high
involvement purchases. Low-involvement purchases mean have simple and low
expenses in evaluation process. For example, buying soft drink and food in the
supermarket is under low-involvement purchases. High involvement purchases
are usually branded goods and involve in high expenses or personal risk. For
example, doing business, making investment, buying house and car are under
high-involvement purchases. Nike shoe is categorising in high-involvement
purchases because is branded goods and comparing with other brands Nike
much more expensive than usually brands.
The fourth stage of CDP model is purchase, the stage that consumer actually
buy the product. For example, after I read the advertisement Nike shoe, I
consider buy the Nike shoe to satisfying my need or want. The buying decision
may take place immediately or in few weeks later. The seller may need to
attributes the product by compared with the competition with own advantages
and giving trial or sampling of the product hope the sale increasing.
The final stage of CDP model is post-purchase evaluation, after customers buy
the product and used, the customers will compares it with expectation on their
past experience either the product is satisfied or not. The “cognitive dissonance”
concept will commonly occur when the customers experience concerns after
making purchase decision. Cognitive dissonance mean the customers buy new
product is preferable than the product is using and customers may not
repurchase the product is using or switching other brands. For example, before I
bought Nike shoe I was wearing Bata shoe, I feel like Nike shoe is more
comfortable and good quality so I may not repurchase Bata shoe and changing
the mind to purchase Nike shoe. To manage the experience success is the job of
the marketers to persuade the potential customers to purchase the product will
satisfy their needs, for the customers that purchased the product should be
encouraged that their decision making is right to repurchase the product and
avoid them changing their mind to choose other product. For example, I had
bought Nike shoe and wearing it, I feel that Nike shoe giving more comfortable
and good quality than other shoe. In future purchase decision I will repurchase
the Nike shoe because it satisfies my needs.
5 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is the systematic and organized framework that guides


the entire research process, from the formulation of research questions to the
interpretation and presentation of findings. It encompasses the strategies,
techniques, and procedures used by researchers to collect, analyze, and interpret
data, ensuring the validity and reliability of the research outcomes. A
comprehensive research methodology is fundamental for producing credible and
meaningful results in various fields of study.

5.1 OBJECTIVES OF STUDY

1 Understand Purchasing Patterns

2 Evaluate Brand Loyalty

3 Explore Perceptions and Emotions

4 Assess the Impact of Marketing Activities

5 Investigate Sustainability Preferences

6 Analyse Online and Offline Shopping Experiences


5.2 HYPOTHESIS

Hypothesis 1 (Quantitative):

Null Hypothesis (H0): There is no significant relationship between promotional


activities (advertising, discounts) and consumer purchasing behavior for Nike
products.

Alternative Hypothesis (H1): Promotional activities significantly influence


consumer purchasing behavior for Nike product.

Hypothesis 2 (Quantitative):

Null Hypothesis (H0): There is no significant difference in brand loyalty


between different age groups among Nike consumers.

Alternative Hypothesis (H1): Brand loyalty varies significantly across different


age groups among Nike consumers

Hypothesis 3 (Qualitative):

Null Hypothesis (H0): Perceived quality has no impact on consumer perceptions


and emotions towards Nike products.
Alternative Hypothesis (H1): Perceived quality significantly influences
consumer perceptions and emotions towards Nike products.

Hypothesis 4 (Qualitative):

Null Hypothesis (H0): Consumer attitudes towards sustainability do not


significantly affect their purchasing decisions for Nike products.

Alternative Hypothesis (H1): Consumer attitudes towards sustainability


significantly influence their purchasing decisions for Nike products.

Hypothesis 5 (Mixed Methods):

Null Hypothesis (H0): There is no significant interaction between online and


offline shopping experiences in shaping overall consumer satisfaction with
Nike.

Alternative Hypothesis (H1): The interaction between online and offline


shopping experiences significantly impacts overall consumer satisfaction with
Nike.
5.3 METHOD OF DATA COLLECTION

Data includes facts and figures, which are required to be collected to

achieve the objectives of the project. In order to determine the present position
and satisfaction of customers of nike

SAMPLE SIZE AND SAMPLING TECHNIQUE:

The number of items selected from the universe to present the universe is called
size of the sample. So for the purpose of this study, a total of 100 respondents
will be approached. The sampling technique used for the study will be
convenience sampling.

DATA COLLECTION:

1. Primary data

Primary data refers to original data collected firsthand by researchers for a

specific purpose or project. It is data that has not been previously collected,
processed, or analysed by anyone else. This can include surveys, interviews,
experiments, observations, or any other method of data collection directly from
the source.
2. Secondary data

Secondary data refers to data that has been collected by someone else for a
purpose other than the one at hand. This data has already been processed,
analysed, and often published in reports, articles, or other sources. Researchers
can use secondary data for their own analysis and research purposes without
having to collect primary data themselves. Examples of secondary data include
government statistics, academic research papers, company reports, and
previously conducted surveys. For the study, both primary and secondary data
will be collected. For primary data, a questionnaire can be developed and
conducted a survey of 100 samples and personally takenone to one conversation
with nike users For secondary data, existing literature in form of magazines,
papers, company literature, book, web sources will be consulted.

QUESTIONNAIRE:

For conducting a survey on consumer behavior analysis for Nike a structured


questionnaire with multiple choice related to overall experience with Nike
service towards overall, their problem or experience related to service will be
asked. The questionnaire will be administered using interview technique.
6 DATA ANALYSIS

1 what factors influence your decision to buy Nike products

Interpretation

The data suggests that brand reputation and product quality are significant
factors influencing purchasing decisions for Nike products, with 30% and 66%
emphasis, respectively. Price, at 4%, seems to have a comparatively lower
impact on the decision-making process. This implies that consumers prioritize
the brand’s image and the quality of the products when choosing Nike over
other factors like price.

2 How important is design and style of nikes products in your


purchasing decisions

Interpretation

The data indicates that design and style play a substantial role in purchasing
decisions for Nike products, with 48% considering it important, 32% finding it
extremely important, 16% describing it as somewhat important, and only 4%
stating it is not important. This emphasizes a significant emphasis on the
aesthetic aspects of Nike products in influencing consumer choices.

3 which Nike product category you most frequently purchase


Interpretation

The majority of respondents, at 70%, most frequently purchase footwear from


Nike. Apparel follows at 8℅ , accessories at 14℅ and only 8% choose other
product categories. This suggests a strong inclination towards Nike's footwear
products among the surveyed consumers.

4 How do you perceive nike pricing compared to it’s competitors

Interpretation

The perceptions of Nike's pricing compared to its competitors vary among


respondents, with 38% considering it affordable, 34% describing it as
moderately priced, 20% finding it expensive, viewing it positively in terms of
affordability.

5 Which social media platform is most effective for Nike


advertising
Interpretation

The data strongly indicates that respondents believe Instagram is the most
effective platform for Nike advertising, with 98% selecting it. Only 2%
mentioned Facebook or Twitter, and there were no responses indicating other
preferences. This highlights a dominant perception of Instagram's effectiveness
for Nike advertising among the surveyed individuals.

6 what role does online reviews and rating plays in influencing


your decision to purchase Nike products.
Interpretation

The data reveals that a substantial portion of respondents find online reviews
and ratings influential in their decision to purchase Nike products, with 26%
considering them very influential and 36% stating they are influential.
Additionally, 36% express a neutral stance, while only 2% find online reviews
and ratings not influential. This emphasizes the significance of online feedback
in influencing consumer decisions for Nike products.

7 How would you rate the overall shopping experience on nikes


website or app
Interpretation

The majority of respondents, at 54%, rate the overall shopping experience on


Nike's official website or app as good. Additionally, 34% describe it as
excellent, while 12% consider it average. This suggests a predominantly
positive perception of the shopping experience, with a notable percentage rating
it as excellent.

8 How satisfied are you with the variety of sizes and style offered
by Nike for their products
Interpretation

The data indicates a high level of satisfaction with the variety of sizes and styles
offered by Nike, with 60% expressing satisfaction, 26% stating they are very
satisfied, and 14% maintaining a neutral stance. This suggests that a significant
majority of respondents are content with the diversity of options available in
terms of sizes and styles for Nike products.

9 How important is availability of the limited addition or


exclusive Nike products in influencing your purchase decision
Interpretation

The data reveals that a notable portion of respondents consider the availability
of limited edition or exclusive Nike products important in their purchasing
decisions, with 52% stating it is important, 28% finding it very important, and
20% describing it as average. This suggests that the exclusivity factor plays a
significant role for a substantial portion of consumers when deciding to make a
purchase.

10 which of the following factors is most influential in your decision


to purchase Nike products.
Interpretation

The most influential factor in the decision to purchase Nike products, according
to the data, is brand reputation at 40.8%. Following closely is product
performance at 38.8%. Price holds an 8.2% influence, and style/design
contributes to the decision for 12.2% of respondents. This suggests a significant
emphasis on brand reputation and product performance in shaping purchasing
decisions for Nike products.

11 how would you rate the nikes effort in promoting sustainability


And eco friendly practices as good
Interpretation

The majority of respondents, at 55.1%, rate Nike's efforts in promoting


sustainability and eco-friendly practices as good. Additionally, 28.6% describe
these efforts as excellent, while 14.3% consider them average. This indicates a
positive perception overall, with a notable percentage acknowledging Nike's
initiatives in promoting sustainability.

12 what influence your choice between offline and online


purchasing of Nike products
Interpretation

The factors influencing the choice between online and offline purchasing of
Nike products are varied among respondents. Convenience holds the highest
influence at 30%, followed closely by availability at 26%. Both price and in-
store experience contribute equally, each at 22%. This suggests that a balance of
factors, including convenience and availability, plays a significant role in
determining whether consumers opt for online or offline channels for Nike
purchases.

13 On a scale 1 to 5 how satisfied are you with Nike service

Interpretation
The majority of respondents, at 70%, express satisfaction with Nike's customer
service, while 28% indicate a higher level of satisfaction, describing their
experience as "very satisfied." This suggests an overall positive sentiment
toward Nike's customer service, with a notable portion having an especially
positive experience.

14 Are you influence by Nike collaboration with other brand or


designer when making purchase
Interpretation

The data reveals diverse responses regarding the influence of Nike's


collaborations with other brands or designers on purchasing decisions. A notable
44% of respondents acknowledge being influenced, while 14% explicitly state
no influence. A substantial 42% note that they are sometimes influenced,
highlighting a varied impact of collaborations on consumer choices for Nike
products.

15 How well do you think nike cater to different age groups in


terms of product design and marketing
Interpretation

The majority of respondents, at 57.1%, believe that Nike caters well to different
age groups in terms of product design and marketing. Additionally, 24.5% feel
that Nike caters very well, while 18.4% express a neutral stance. This suggests a
positive perception overall, with a significant portion acknowledging Nike's
effectiveness in appealing to diverse age demographics.

7 LIMITATIONS
1 Limited Access to Internal Data: Access to Nike's internal consumer
data may be restricted, limiting the depth of your analysis to publicly available
information.

2 Limited Demographic Information: Comprehensive demographic


data about Nike consumers may not be readily available, impacting the
precision of your analysis.

3 Influence of Influencers: Consumer behavior may be strongly


influenced by social media influencers and celebrities, making it
challenging to isolate Nike's impact

4 Difficulty in Assessing Emotional Factors: Understanding emotional


factors influencing consumer behavior might be challenging, as emotions can be
subjective and complex.

5 Limited Cross-channel Integration:Integrating data from various


consumer touchpoints (online, offline, social media) might be
challenging, impacting a holistic understanding of consumer behavior.

SUGGESTIONS
Nike can elevate its consumer engagement by implementing personalized
marketing campaigns that resonate with individual preferences and behaviors.
Leverage data-driven insights to optimize product recommendations, enhancing
the online shopping experience for consumers. Capitalize on the allure of
limited edition releases by strategically planning and innovating in this space to
create anticipation and demand.

Highlighting Nike's commitment to sustainability in marketing materials and


product information addresses the increasing consumer interest in eco-friendly
practices. The mobile app experience should be a focal point for ongoing
improvement, ensuring seamless navigation and personalization features.

To connect with diverse audiences, Nike should adapt marketing messages to


cultural nuances, strengthening its global appeal. Strategic collaborations with
influencers aligned with Nike's values can amplify brand messaging, reaching
specific consumer segments authentically. Actively collecting and acting on
customer feedback contributes to product improvement and showcases Nike's
responsiveness.

Promoting loyalty programs with exclusive benefits and personalized rewards


fosters brand loyalty. Cross-channel integration ensures a cohesive consumer
journey, both online and offline. Lastly, educating consumers on product
innovations reinforces Nike's image as a leader in performance and style. By
embracing these suggestions, Nike can enhance consumer satisfaction, loyalty,
and brand perception.

8 CONCLUSION
the consumer behavior analysis of Nike has unveiled valuable insights that can
guide strategic decisions to enhance brand engagement and consumer
satisfaction. The multifaceted approach, combining surveys, interviews, social
media analysis, and behavioral analytics, provided a comprehensive
understanding of how individuals interact with Nike products.

Personalized marketing campaigns, informed by consumer preferences,


emerged as a key recommendation to deepen brand connections. Leveraging
data-driven insights for optimized product recommendations and embracing
limited edition releases strategically can further captivate consumer interest.
Nike's commitment to sustainability stands as a significant opportunity to
communicate ethical values, aligning with the growing interest in eco-friendly
practices.

The focus on enhancing the mobile app experience and adapting marketing
messages to cultural nuances emphasizes Nike's dedication to providing a
seamless and globally relevant brand experience. Collaborations with
influencers and a robust loyalty program can amplify brand messaging and
foster lasting connections with consumers.

Continuous data collection, customer feedback mechanisms, and cross-channel


integration underscore Nike's commitment to responsiveness and a cohesive
consumer journey. Education on product innovations reinforces Nike's position
as an industry leader in both performance and style

In essence, the recommendations derived from this consumer behavior analysis


are poised to empower Nike in navigating the ever-evolving landscape of
consumer preferences. By implementing these strategic insights, Nike can
fortify its brand presence, foster lasting consumer relationships, and maintain a
competitive edge in the dynamic retail environment.

9 BIBLIOGRAPH

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