To understand the reasons for

low market share of NIKE in

India

Presented by:
Abhishek Ranjan
Sagnik Raha
Sobhan Khuntia
Sourav Dutta
Debashis Sarangi
Prasanna kr Nayak
Background
• Nike started its operation in India in 1996 with an exclusive
distribution agreement with Sierra.
• Nike accounts for just 20% of the 400 crore branded sports
apparel market
• Nike lags much behind Reebok and Adidas, its major
competitors.
• Recently Nike has revamped its operations in Asia through
localization and customization.
• Even though Nike is a world leader in Sports apparel industry,
its hasn’t been able to replicate its success in India.
Marketing Objective

• To understand the reasons for low market

share of NIKE in India and Suggest Strategies
to strengthen it’s position in Indian market.
Research Objective
•To assess the Factors that affect the buying
behavior of the customer.
•To understand the importance of certain
attributes given a preference by consumers.
•To evaluate brand recall and association.
•To do an competitors analysis to understand
the threat of direct competition.
Key Information Areas:
• Product Performance
• Brand Image
• Demographics
– Income, age, sex, , profession
• Awareness
– spontaneous/top of mind, share of mind/share of heart
• Product specs
– Quality , style, durability, comfort.
Data Collection:

Primary Research : via questionnaires from

Students and Professionals of different Age
groups , having different purchasing powers.
Secondary Research
•Newspaper Articles
•Literature Review
•Business Standard
•Internet
Sample Statistics:

•Sample of 60 respondents
•Both in person and online
•The Demographic details of the respondents
are as follows:-
Classification of the Respondents
Classification of the Respondents:

Gender Age
<18 years( 5%)
>18- 25
Males(81 years(59%)
%)
>25-30
years(25%)
Females(
19%) >30-35
years(6%)
>35 years(5%)
Classification of the Respondents:

Occupation
Yearly Income
<2
Lacs(12%)
Student(42%) Salaried > 2 and <4
Professional(2 Lacs( 21%)
5%)
> 4 and < 6
Government Businessman( Lacs(23%)
Employee(10 15%)
%) > 6 and < 8
Lacs(9%)
Others(8%)
>8
Lacs( 35%)
Preference of Sport Apparel Buyers : Factor Analysis

Factors

Value for Money Affordability, Sales promotion Discounts, Warranty & After
sales service

Aesthetic Appeal Styling, Brand Image, Store Decor

Performance Quality, Durability, Comfort

Brand Nike: Factor Analysis

Factors

Aesthetic Appeal Styling, Brand Image, Store Decor

Performance Quality, Durability, Comfort

Comparative Analysis – Nike V/S Other Brands
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30

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20

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Other Brands
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Based on respondents’ perception of the Sports Apparel segment vis-à-vis NIKE and
other brands on the given parameters.
 Brand Awareness: Top of Mind (Overall)

TOMA

83% 98%

nike
adidas
reebok
puma

93% 83%

All data in PERCENTAGE of respondents

Brand Awareness: Spontaneous (Overall)

Overall TOMA

26% 26%
Nike
reebok
Adidas
Puma

25% 23%

All data in Percentage of respondents

Perception of NIKE: Overall
Store Attractiveness
Discounts
Promotion
Brand image
Value for money
Innovation
Performance
Availability
Comfort
Variety
Durability
Affordable Price
Styling
Quality of Products

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

1: Percentage of respondents associating a particular parameter +vely with NIKE

Association of Nike with sports

Association with sports

16% 18%
Cricket
Football
19% Tennis
Basketball
26% Athletics
21%
Brand Personification

Brand Ambassadors

11% 2% Indian Sportstars

14% Foreign Sportstars
Bollywood
Celebrities
Others
73%
Jaccard Analysis

Parameters
Quality of Products Styling
Affordability Durability
Product Variety Comfort
Availability Performance
Innovation Value For Money
Brand Image Quality of Promotions
Sales Promotion Store Attractiveness
Jaccard Analysis
Jaccard analysis results into Jaccard Similarity Coefficients which are also
referred as Jaccard scores. Jaccard analysis is done to find out the variables
in order of their importance for their ability to govern groupability or
similarity with the dependent variable.
Jacard Score Sheet:
 Jaccard Analysis

Category Drivers Rank

Quality of Products 1
Durability 2
Comfort 3
Promotion 4

Brand Drivers (NIKE)

Comfort 1
Promotion 2
Quality 3
Variety 4

Category Driver, Jaccard Score >0.5

 SWOT Analysis: NIKE
• To understand the relative strengths and weaknesses of elements/attributes, SWOT
(strengths, weaknesses, opportunities and threat) analysis is done
SWOT scores are calculated as following:
SWOT Score for a Brand on Attribute A = ( Score of attribute A – Attribute’s average ) - (Average of
Brand’s scores on all attributes being considered-Grand Average of scores ).
SWOT Scores:
SWOT Analysis: NIKE
●
● Quality ●
● Styling
●
● Durability ●
● Variety
●
● Comfort ●
● Store
●
● Performance attractiveness

Strengths Weakness

Opportunity Threats

●
● Availability ●
● Affordability
●
● Innovation ●
● Value for money
●
● Promotion ●
● Sales promotions
Stochastic Share Analysis

Stochastic Share

13% 32%

Adidas
21%
Nike
Reebok
Puma
34%
Inference:

• Reebok as a brand is underperforming but on the other

hand it enjoys the maximum market share.
• NIKE’s stochastic share and market share are quite
dissimilar but the company can leverage on its higher
stochastic share as compared to its competitors.
Qualitative Analysis
Approach to Qualitative Research

Qualitative Research

Focus Group Discussion

Division of Qualitative Analysis
Focus Group Discussions
 Objective: To understand how do prospective buyers relate to
the sports apparel segment and to analyze consumer
preferences
 Sampling method: Non-probabilistic sampling – Judgment
sampling
 Sample size: Focus groups of 6 members .
 Respondent profile: Representation was from people of similar
age group and educational qualification with different family
income levels.
 Moderator: Sagnik Raha & Abhishek Ranjan
FGD

Topic
Thought Process behind Brand and comfort comes Depends on the occasion.
choosing an apparel first

Brand being a deciding Brand assures quality and Brand doesn’t mean
factor. durability. much. It just ensures a
good fit.

Associating sports apparel Cricket and football. Filmstars were also not
with sports and sports Linked brand with behind the race and some
stars sachin,yuvraj,roger common names came up.
federer, saina nehwal
FGD

Topic
Advertisement and Ads over TV and Internet
promotions are common medium of
communication

Most important attributes Affordability and Pricing

Brand Preference Nike and Puma was the Reebok by some.

majority
Consumer Dynamics

Window shopper 44%

Seeking information 57%

Always seeking for discounts 61%

Willing to pay premium 65%

Price Sensitive 35%

Influenced by Ads 33%

Brand switchers 61%

Conclusions
• General Perception of NIKE on given parameters was better than that of
other Sport Apparel Brands other than attributes like:-
Affordability
Factors of sales promotion like discounts
Value for money
• TOMA for NIKE is higher than the TOMA of other brands probably due to
it’s international appeal and styling.
NIKE is already associated with
– Aesthetic appeal.
– Brand Image.
– Durability .
– Comfort .
So the million dollar question is where is NIKE losing the plot……………..
NIKE in spite of having all the necessary attributes with respect to the
Products on offer, it might be losing out on the following parameters:
• Lack of Promotional schemes like Discounts or packages
• Lack of Brand Association/ Loyalty.
• Customers inability to connect with the Brand in terms of national appeal.
• Pricing it’s product a bit higher than expectation, thereby leading to
erosion of Doctrine of Value for money .
• In ability to provide Indian customers with a varied collection of products
to choose from thereby leading to customers moving to other brands.
• Lack of penetration as retail is still pursued via Exclusive showrooms
approx 90%, this leads to lesser visibility and thus leading to lack of
customer connect.
Proposed Strategies

• The perceived association of Nike has been majorly with Football, Tennis
and Basketball which clearly brings a loophole in the promotion strategy in
India which is majorly through cricket. We suggest that there is a need for
a proper brand ambassador with whom the product can be associated.

• The majority of the customer believes in paying a premium for quality

products(65%) and who always looks out for promotional offers(61%).This
is a contradiction which cannot be solved by resorting to either of the two
types of customers. So, the selling should be more localized maintaining
the same global quality standards but providing timely discount offers to
attract customers.
THANK YOU!!!!