CONSUMER BEHAVIOUR

PRESENTED BY :- TOWARDS :-
1. RINAL (70)
2. MISBA (127)
3. GUNJAN (02)
4. NEEL (30)
5. PRASAD (57)
6. KUMAR (61)
7. VAIBHAV (104)
8. Shubham (136)
9. Gaurav (44)
 ABSTRACT / EXECUTIVE SUMMARY
From past many decades people are getting more into sports as a recreation as well as an
entertainment. Hence, sports materials and equipment’s especially the shoes that are used in various
sports are demanded much higher. Nike is the leader in the athletic shoe industry after which comes
Adidas. So this clearly states that they are Giants in athletic footwear industry and are highly
competing each other. In this study most of the factors are covered that affects the competition of Nike
and Adidas. It contains all the details of Nike as well as Adidas. And there also a survey conducted,
considering various factors of Nike and Adidas. The strategies of Nike and Adidas have been
compared from the footwear industry. Nike and Adidas both specialize in footwear, apparel and
accessories and their competition is intense as Nike is the market leader and Adidas is the market
challenger. The topics in this report cover critical incidents of both Nike and Adidas that occurred in
the past and the comparison between both their strategies as well their future plans.
 AIMS & OBJECTIVES
• To learn about strategy and strategic management of 2 companies of same industry.
• The strategies have been compared on the basis of athletic footwear industry.
• To study the demand of which company products are more and methods used by them to
attract the market.
• To measure the effectiveness of advertisement / promotional activities for a
competing product class and corporate advertising.
• To understand the competition between Nike and Adidas.
• To know how they face their competitor’s strategies.
• To know how they survive in the cutthroat competition.
• To learn, how these companies have dealt with critical situations they faced in past.
 LIMITATIONS
The geographical area was very much limited to residential area & so the results are
not particularly reflection of the current behaviour.
• Sample size is 100 or above 100 so the accurate survey is not enough to get
generalize finding of the study.
• Sample are only collected in our district, so it is not applicable to other places.
• People were hesitant to disclose the content and facts.
• Due to the limited time few people were survey for the study.
• Many respondents were not in favour for both of the brands, there was a problem to find
specific Adidas and Nike brand lovers
 About :-
ADIDAS nike
Adidas AG, German manufacturer of athletic shoes
and apparel and sporting goods. Nike, Inc., formerly (1964–78) Blue Ribbon
Sports, American sportswear company .
The name Adidas (written “adidas” by the company)
is an abbreviation of the name of founder Adolf It’s company is headquartered in Oregon.
(“Adi”) Dassler.

 Part of Nike’s success is owed to endorsements

The Dassler family began manufacturing shoes by such athletes as Michael Jordan, Mia
after World War 1. Hamm, Roger Federer, and Tiger Woods.

Headquarters is in Herzogenaurac, Germany.

 TOP COMPETITORS OF NIKE & ADIDAS

 Puma  Fila
 Converse  Jordan
 Reebok  Brooks
 Vans  New balance
 Skechers  Under armour
 MARKETING MIX
“ PRODUCT ”
NIKE ADIDAS
This element of the marketing mix enumerates the Adidas focuses on design and technology for their
organizational outputs offered to target consumers. These products and produces products which are futuristic and
outputs are known as the product mix. The following satisfies customers wants and desires.
broad categories represent Nike’s product mix:

Shoes

Compression and Nike Pro

Apparels

Tops and Tshirts Deodorants,

Adidas watches
Perfumes,
& Adidas
Aftershave and
sunglasses.
Hoodies and Pullovers Lotions.
Handbags for
men and
women.
Jackets and vests
Men’s,
Women’s,
kids’s shoes and
Pants and tights clothing.

Shorts
 MARKETING MIX
“ PLACE ”
nike adidas
• Retailers are the most significant places where its • The major way in which Adidas is sold
products are sold. is through retail.
• Nike is present in more than 150 countries in the • Adidas uses e-commerce websites like
world. Myntra.com, Flipkart.com, Amazon.com
•  Nike has its manufacturing units in almost every etc to sell their new launches.
country to minimize the logistics costs and get better
efficiency in the distribution.
The Manufacturing > Adidas
• Nike uses three channels to sells its wide variety outlets > End customer
distribution 
of the products to its consumers :-
channel of Manufacturing > Distributor
Adidas is as > Multi brand showrooms

Retailers
Nike
exclusive
Online sale
through E-
follows :-
offline stores commerce Manufacturing > Online
fashion websites / Adidas
website > End customer
 MARKETING MIX
“PRICE”
NIKE ADIDAS
 This element of the marketing mix identifies the The pricing strategy that Adidas uses is an
prices that the company applies to maximize example of the high low pricing strategy.
profits while attracting the desired share of the
multinational market.
The pricing strategy in the marketing mix of
Adidas has focused upon high quality and
 Nike uses :-  competitor offering.
• Value-based pricing strategy
• Premium pricing strategy products are either customized as per need.
Even if not, highly priced due to the high
quality of the material used.
 Nike is known for its superior quality and world-
class shoe designs and successfully manages to
provide value for money to its customers. Adidas never compromised with its quality and
standards, and its price is always justified.
 MARKETING MIX
“PROMOTION”
Nike Adidas
•  Nike applies a strategic combination of advertising, •  Adidas marketing is concentrated
personal selling, direct marketing, sales promotions, on television and product placements.
and public relations. 
• Adidas Ads are well made, Which attract the
• Five different statements but they all mean the same customers by sending the right marketing
thing and have the same essence – That’s what Nike message
as a brand promotes through all the promotion that it
does.
•  product placement is the second line of
promotion for Adidas. it ties up with the top
players across the world
Go Make
Achieve
Just Do It Beyond your Don’t Quit Impossible
limits
Greatness
Possible • Adidas also sponsors teams 
 SWOT – ANALYSIS

STRENGTHS WEAKNESSES OPPOURTUNITIES THREA

NIKE
 STRENGTHS
• Strong management team and good corporate strategy in both North
American and overseas markets.

• Offers their product worldwide

• Providing lightweight shoes by incorporating lunarlite foam materials .

• Brand recognition and reputation.

• Strong control over its own distribution channel.

 WEAKNESSES
• The organization does have a diversified range of sports products, still profit
dependent upon its share of the footwear market.

• It is highly dependent on us market

• Poor labour conditions in foreign countries

• The retail sector is very price sensitive. However, most of its income is derived
from selling into retailers.

• So margins tend to get squeezed as retailers try to pass some of the low price
competition pressure onto Nike.
 OPPORTUNITIES
•Creating sportswear items by incorporating the waste from regular
manufacturing.

•Stepping into the line of economy boosting projects that will encourage
recycling.

•Product development that changes as the trends change.

•Expansion into sport sunglasses and jewelry lines.

•Expansion in the global markets to create larger brand recognition.

•Reducing controversy surrounding their trade and production practices.

 THREATS
• Nike is exposed to the international nature of trade. It buys and sells in different
currencies and so costs and margins are not stable over long periods of time.

•Maintaining the reputation of being eco-friendly.

•Managing the financial conditions in the economy today.

• Fake products could be one of the most critical reasons for Nike. Thus, Nike
could lose more than million dollars business.

• Nike always represent high quality and highly reliable. So the cost will be higher
than other brands. Thus public feels that Nike overcharges its consumers.
ADIDAS
 STRENGTHS
• Company has multiple product portfolio’s with varied range of footwear &
accessories under brand name Adidas.

• By selling it from online stores to company owned stores to supermarket

stores, Adidas has an effective distribution system.

• Celebrity endorsements & sponsoring major sports organizations such as FIFA,

UEFA, NBA & Olympics has increased the awareness of Adidas in the market.

• Strong relationship within the sustainability area with organizations such as

International Labour organization, International Finance Corporation has
given the company an edge over competitors.
 WEAKNESSES
• High price range due to innovative technology & Production methods have made
the brand affordable to limited customers only, especially in developing countries.

• Outsourced manufacturing: Adidas has 93% of production outsourced to 3rd party

manufacturers (largely to Asia) to avail of low labour cost & easy availability of
resources.

• Wasting resources, trying to overtake nike in the us market

• Lag behind nike in the market

• Small product line, Less product range compared to competitors

• Tough competition and availability of similar products of other brands makes

customer switch to those brands
 OPPORTUNITIES
• Entering into new markets  will be the only way to succeed in the future because
developed economies are already having high competition

•  Expanding its product line will open a new set of opportunities while at the same
time it can differentiate itself from the competitors by following this strategy

• Tie up with local market player to boost the sale volume

• Has a great opportunity to expand international market

---- Retail outlet
---- E- commerce
 THREATS
•  Although Adidas is a global brand but it is facing fierce competition from
other brands like Nike which is No.1 brand and Adidas being in 2nd Position in
this premium segment. 

• Due to majority of its production being outsourced; Suppliers have more

bargaining power then the company.

• With its 35% products manufactured in China & 93% of production happening

in Asia, Import regulations, duty & tariffs plays a critical role in the pricing
and success of the company.

• New competitors entering into market

 SIMILARITIES / DIFFERENCE
Nike
• More focused on the local market.
• More effective advertising and
marketing.
• Recently updated the look of its line.
• Offers custom product lines.
• Excellent website support for custom
options.
• All production is outsourced
Adidas
• More focused on the European market.
• Specializes in soccer, tennis, and athletics.
• Recently expanded its product line to
include sports equipment and clothing.
• Recently updated its production for
increased efficiency and cost effectiveness.
• Production is outsourced to Asian
countries.
 RESPONSES OF THE CONSUMER

From the above diagram we can see that more

than half of the people we surveyed were of age
Out of the people we surveyed 64.8% were
18-25 while 16.2% of people were of age 25-
30 and rest all are above age 30. males while 35.2% were females.
From the above diagram we can see that 38.1% of
the people prefer NIKE while
35.2% of the people prefer ADIDAS and 17.1% of
the people like PUMA and rest 8.6% of the people
prefer REEBOK
From the above diagram we can see that
38.1% of the people wear shoes casually,
27.6% wears regularly, 26.7% wears
occasionally and rest 7.6% people wear shoes
very often.
 From the above diagram we can see that
From the above diagram we can see that approx 2% & 5% of the people know about Adidas & Nike from
Price influenced 21.9% of the consumer to switch over last 1 year respectively. Approx 43% & 40%of the people know
brand , change in trend influenced 49.5% of the people, about ADIDAS & NIKE from 5 years respectively, approx
promotional discount influenced 23.8% of the people and 32% & 29% of the people know about Adidas & Nike from
bad experience influenced 14.3% of the people last 10 years respec, approx 28% & 31% of the people know
about Adidas & Nike from last more than 10 years
From the above diagram we can see that 40% & 32% of
people prefer buying clothes from adidas & nike
respectively, 59% & 62% of people prefer buying shoes
from adidas & nike repec., 29% & 22% of people prefer
buying sports equipments from adidas & nike repec.,
rest 3% of people buy other products from these
brands.
From the above diagram we can see that
68.6% of the people bought product by getting
influenced by marketing or branding programs
and 31.4% of the people didn’t get influenced by
marketing programs.
From the above diagram we can see that 48.6% people
prefer discount promotional tool to buy products while
20% of people prefer BUY ONE GET ONE FREE, 18.1%
of people prefer free gift and rest 12.4% of the people
prefer lucky coupon for purchasing product.
From the above diagram we can see that 25% of the
people gets attracted to durability of the product while
43% of the surveyed people gets attracted to style, 21%
of people gets attracted to finishing, quality attracts 57
% of the people, and rest 60% gets attracted by
comfort.
From the above diagram we can see that 43% & 38% of
the people prefer wearing adidas canvas & nike canvas
repectively, sneakers of adidas and nike is equally
preferred by the customers, 20% & 18% of the people
prefer adidas & nike toe shaped shoes respectively, people
prefers spikes of nike rather than of adidas, 1% & 3% of
the people prefer wearing studs of adidas & nike resp.
From the above diagram we can see that products have
met the needs of 19% of consumers to the fullest extent,
more than 80% of the need is met by 41.9% of the
consumers, 50-80 % of the need is met by 34.3% of the
consumers, and less than 50% of the need is met by 5%
of the customers.
 From the above diagram we can see that 11.4% of the people
From the above diagram we can see that 43% & 60% of
would prefer spending Rs 500-1000 on a pair of shoes, 19% of
people prefer buying tops & T-shirts from adidas & nike
the people would prefer spending Rs 1000- 2000, 23.8% of the
respectively, 52% & 40% of the people prefer buying
people would prefer spending Rs 2000- 3000, 26.7% of the
hoodies & sweatshirts from adidas & nike respectively,
people would prefer spending Rs 3000- 4000 on a pair of
30% & 32% of the people prefer buying jerseys from
shoes, 14.3% of the people would prefer spending Rs 4000-
adidas & nike, and 15% & 19% of the people prefer
5000, and the remaining people would prefer spending rs
buying tracks & tights from adidas & nike respectively.
5000 or more on a pair of shoes.
 The diagram shows the following rating percentage
provided by the customers to respective brands.
Nike Adidas
From the above diagram we can see that 41% of the • 3% rated 1/5 • 5% rated 1/5
people prefer buying products from its exclusive stores, • 5% rated 2/5 • 4% rated 2/5
39% of the people prefer buying from online apps and • 18% rated 3/5 • 24% rated 3/5
20% of the people prefer buying from factory outlets. • 50% rated 4/5 • 48% rated 4/5
• 27% rated 5/5 • 24% rated 5/5
 FINDINGS
• 63% of the people surveyed are of age group 18-25, and the rest are above 25.

• Out of the people we surveyed 64.8% were males while 35.2% were females.

• 38.1%prefer NIKE while 35.2% prefer ADIDAS and 25.7% prefer the rest of the brands.

• 38.1% of the people wear shoes casually, 27.6% wears regularly, 26.7% wears
occasionally and rest 7.6% people wear shoes very often.

• Reasons which influenced people to switch over brands are 21.9% price influence,
49.5% change in trend , 23.8% promotional discount , 14.3% bad experience

• 2% & 5% of the people know about Adidas & Nike from last 1 year respectively.43% &
40% of people from 5 years respectively,32% & 29% of people from last 10 years
respectively,28% & 31%of people from last more than 10 years.
• Products which people prefer buying from NIKE and ADIDAS are, 40% & 32% clothes,
59% & 62% shoes, 29% & 22%b sports equipment and 3% other products.

• 68.6% of people were influenced by marketing or branding programmes, whereas 31.4

were not influenced

• 48.6% people prefer discount promotional tool to buy products, 20% of people prefer BUY
ONE GET ONE FREE, 18.1% of people prefer free gift and rest 12.4% of the people
prefer lucky coupon for purchasing product.

• Reasons which attract people to buy products are 25% durability, 43% style, 21%
finishing, 57% quality, 60% comfort.

• Types of footwear of NIKE and ADIDAS preferred by people are 43% & 38% canvas
respectively, 20% & 18% toe shaped shoes, 1% & 3% studs and equal percentage of
people prefer sneakers.
• 19% of the people are fully satisfied by the products, 80% of satisfaction is met by 41.9% of
consumer, 50-80% of satisfaction is met by 34.3% and 50% of the satisfaction is met by 5% of
customers.
• Clothing products preferred by people from NIKE and ADIDAS are 43% & 60% tops and T-
shirts , 52% & 40% hoodies and sweatshirt, 30% & 32% jerseys, 15% & 19% track and tights
• Percentage of people willing to spend on NIKE or ADIDAS product are 11.4% RS500-1000,
19% RS1000-2000, 23.8% RS2000-3000, 26.7% RS3000-4000 and the rest above 4000
• 41% of the people prefer buying products from its exclusive stores, 39% of the people prefer
buying from online apps and 20% of the people prefer buying from factory outlets

• Rating given by the surveyed people are as follow:-

Nike
• 3% rated 1/5
• 5% rated 2/5
• 18% rated 3/5
• 50% rated 4/5
• 27% rated 5/5
Adidas
• 5% rated 1/5
• 4% rated 2/5
• 24% rated 3/5
• 48% rated 4/5
• 24% rated 5/5
 RECOMMENDATION
• The results of the present study may be helpful to upcoming sports marketing professionals in order to enhance
their sales.
• The results of the present study shall guide the sports manufacturers and franchise in making their
product better.
• A similar study can be conducted on National and International levels sportspersons. The study in future days
may include vast area not just limited a particular region.
• The tool used in the study may be made systematic by using Likert Scale for assessing the perception of the
consumers.
• Adidas should undertake more celebrity endorsements and should increase their quality.
•  Nike should lower their prices to reasonable to meet larger markets of customers.
• On the basis of this research, it is found that both the companies have cut throat competition; both the companies
should promote their products which are in great demand.
• Adidas should change its strategies in order to reach up the level of Nike, and to promote well in most parts of the
country.
•  Nike should not only target high level customers, but also mid income group for specific periods to increase sales
 CONCLUSION
On the basis of the results of this study it was concluded that customers of Mumbai prefer wearing
sports shoes on regular basis for various purposes other than gym. Not only is it used by athletes, but
also teens and mid age group. Adidas and Nike brands were highly preferred at the cost of Indian
made shoes like ASE, Action and others. Particular brands were preferred because of its perceived
quality and durability by the consumers. Least importance was assigned to price, variety or safety
provided by the sports shoes to the consumers in this study. The brand name and image attracted
consumers and they felt that the preferred brand reflected their personality. The consumers were
contended with the materials used and colour options provided by their preferred brands. It was also
believed that the increase of price hindered their ability to purchase.
they also agreed on satisfaction with the price range and disagreed on purchase of another brand of
same quality with lesser price. This exhibited their strong association with the brand and their
loyalty. It is noteworthy that many of the
respondents provide importance on the price of sports shoes of their preferred brand. Respondents w
ere determined not to switch over their preferred brand sport shoes under normal circumstances and
they expect some sort of discount to be offered.