38732392 a summer training report

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A SUMMER TRAINING REPORT

ON

MARKETING STRATEGY OF NIKEATｳ NIKESHOES INDUSTRIES LIMITED ｴ

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OFBUSINESS ADMINISTRATION

(BBA)

TRAINING SUPERVISOR SUBMITTED BY

SESSION 2005-2008

ACKNOWLEDGEMENT

The present work is an effort to throw some light on Marketing Strategy of Nike atｳ Nike Industries Limited ｴ. Thework would not have been p ossible to come to the present shape without the ableguidance, supervision and helpto me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidancereceived by my organizational guideｫｫｫｫ..and other staff members.

I convey my heartful affection to all those people who helped and supported meduring the course, for completionof my Project Report.

ｫｫｫｫｫ . .

EXECUTIVE SUMMARY This marketing strategic plan has been written keeping in mind the Indianoperations of Nike Inc. ｱ the globalsports shoe giant. It aims first, at analyzing the sports shoe industry India andfinding a place in it for Nike. It thensets out to describe the target audience for the product range and finally suggests ahost of marketing strategies

and activities that will help Nike to achieve its target of becoming the #1 sportsshoe brand in India.

The plan begins with a brief overview of the product category being dealt with,namely premium quality sportsshoes. It also dwells b riefly on the history of the company and its current positionand activities.

The project moves on to the crux of the matter ｱ the marketing plan to be followedby Nike in Ind ia. Firstly, theobjectives behind this p lan and the core strategy are stated. Customers to beeventually targeted are describedand compared with comp etitors ｶ customer targets. After starting the objectives and

reasoning behind them, theactual marketing programs are d escribed in detail. This includes aspects such aspricing, advertising, promotion,sales, channels, and the company website. Suggestions are made on each and everyone of these aspects;improvements and innovations are recommended.

The plan then goes on to the customer analysis section. The customer base is



innovation to every athlete in the world.Along the way Nike joined up with some great partner companies that help extend ourreach within and beyondsports.

Cole Haan offers casual luxury footwear and accessories out of New York City and Yarmouth, Maine.

Bauer Nike Hockey, based in Montreal, Quebec, is the world's leading manufacturer of

hockey equipment and awholly owned sub sidiary of Nike, Inc.

Nike partnered with Hurley International, a premium teen lifestyle brand founded by20-year ind ustry veteran BobHurley based in Costa Mesa, California.

In 2003, Nike completed the acquisition of Converse, the globally recognized footwearbrand with nearly a centuryof sports heritage, and home of the perennially popular Chuck Taylor All-Star and Jack Purcell footwear.

Exeter Brands Group: In August 2004, Nike created the Exeter Brands Group, a whollyowned sub sidiary, ded icatedto building athletic footwear and apparel brands for the value retail channel. Thisportfolio of brands includes theOfficial Starter Properties LLC and Official Starter LLC which are the sole owners andlicensors of the Starter, TeamStarter and Asphalt brand names as well as master licensee of the Shaq and Dunkmanbrands, a line of athleticapparel, footwear and accessory products for the value retail channel.

Separate business units within the Nike brand include The Jo rdan/Jumpman 23 brandand Nike Golf.

As small as we feel, the Nike family is a fairly vast enterprise. We operate on sixcontinents. Our suppliers,shippers, retailers and service providers employ close to 1 million people. Thediversity inherent in such size ishelping Nike evolve its role as a global company. We see a bigger picture today thanwhen we started, one thatinclud es building sustainable business with sound labor practices. We retain the zealof youth yet act on ourresponsibilities as a global corporate citizen.

If you have a body, you are an athlete. And as long as there are athletes, there will beNike.

PRODUCT TRENDBovine skin was by far the most preferred leather material, followed bygoat/kid/lamb/sheep skin and crocodileskin.

Respondents overwhelmingly preferred the color black and, to a lesser extent, dark brown. Forhandbags/b riefcases, popular colors included light brown, white and red. ConsumerSegments with the BiggestSpending Power Male professionals, managers and executives are the segment withthe biggest spending power fornow and in the coming three years. Other major consumer segments include maleoffice workers; soleproprietors/business owners; female office workers; and female professionals,



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

High Performance Sports Shoes: Nike has patented the ｳ Air ｴ system and has mad e itinto a regular feature in mostof its models. Many models feature an air pocket in the shoe that reduces the weight of the shoe and reduces

pressure on the heels. Besides the overall design and compactness of the shoes havemade it a favorite of manyprofessional athletes around the world.

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

Lig htweight: This attribute is in line with the two described above. A lightweight shoeprovides greater mobility andeases the pressure on the feet of the wearer.

Durability: People purchasing a pair of shoes at such a high price often feel that theyhave made an investment.They would obviously want to see their shoes last a long time. To prove this point wedraw the example of theauthors of this marketing plan. All of us own a pair of Nike ｶ s and have been wearingthem for well over two years ｱ

a symbol of the durability of Nike shoes.

Style: Nikeｶs designs are considered to be the most stylish in the industry and beat allothers as far as looks areconcerned. Attractively packaged, it is a delight to bring a pair home. Add to this theｳSwoosh ｴｱ the most

recognizable symbol in sports and you have a p roduct that would give the user adefinite sense of p ride.

Nike shoes also come with a guarantee card that enables the owner to return it in caseof manufacturing defects.However, owing to the fact that the company implements strict quality controlmeasures, coming across a defectivepair in a store are a rarity. The most recent additions to their line are the Nike 6.0 andNike SB shoes, designed forskateboarding. Nike has recently introduced cricket shoes, called Air Zoom Yorker,designed to b e 30% lighter thantheir competitors'.[ Nike positions its products in such a way as to try to appeal to a"youthful....materialistic

crowd".[5] It is positioned as a premium performance brand.

NIKE 6.O

NIKE SB



RESEARCH METHODOLOGY

Research comprise d efining and red efining problems, formulating hypothesis orsuggested solutions; collecting,organizing and evaluating data; making deductions and reaching conclusions; and atlast carefully testing theconclusions to determine whether they fit the formulating Hypothesis.In short, the search for Knowledge through Objective and Systematic method of finding solutions to a problem isResearch.

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

footwear of Bata.To analyze buying behavior of ladies segment of consumers.

To recommend strategies to Nike to increase sales in ladies segment.

The main objectives of this study are:Working of Insurance PlansSWOT analysis of the p roduct soldComparative study with the competitors

RESEARCH DESIGN

TYPE OF RESEARCH: -Descrip tive researchDescrip tive research includes Surveys and fact-finding enquiries of different kinds.The main characteristic of thismethod is that the researcher has no control over the variables; he can only reportwhat has happ ened or what ishappening.

DATA SOURCESThere are two types of data.Source of primary data for the present study is collected through questionnaire andanswered by consumers of Nike shoes. The secondary data is collected from journals, books and throughInternet search.

PRIMARY DATAThe data that is collected first hand b y someone specifically for the purpose of facilitating the study is known asprimary data. So in this research the data is collected from respondents throughquestionnaire.

SECONDARY DATAFor the company information I had used secondary data like brochures, web site of the company etc.The Method used by me is Survey Method as the research done is DescriptiveResearch.

RESEARCH INSTRUMEN TSSelected instrument for Data Collection for Survey is Questionnaire.

QUESTIONNAIRE DESIGN FORMULATIONUnder this method, list of questions pertaining to the survey are prepared formarketing staff of consumers of Nike



(iii) Sample survey was conducted .(iv) Data was thoroughly checked for error.

DATA PROCESSING METHODOLOGY (i) Once the primary data have been collected, they are (I) edited ｱ inspected,corrected and mod ified.(ii) Tabulation ｱ bring similar data together and totaling them in meaningfulcategories.Questionnaires are edited both in the field and later in home. Field editing took place

just often the interview.Generally editing is required for open type of questions. Brief notes or symbols arefrequently used during the

interview to initially record the interviewerｶ s resp onse since it was not desirable tointerrup t the flow with lengthynote taking. Then immediately after the interview, brief notes are respondent. Theresponses are thoroughlychecked in home for incorrect, inconsequential or contradictions categories aredeveloped only often the replies hasbeen reviewed. This review provided a feel for the pattern of answers and thusdetermine what categories bestrepresent the answers.

The collected data are placed into an order. Percentages of respondents answeredsimilarly are calculated andplaced in a tab le. Then this is interpreted. This involved drawing conclusion from the

gathered data. Interpretationchanges the new information immerg ing from the analysis into information that ispertinent or relevant to thestudy.

CONCLUSION WAS DRAWN BASED ON THE SURVEY FINDINGSFinally recommendation was made to improve the sales strategy of Nike shoes toincrease the sales volume inladies segment.

SAMPLE DESIGNTHE BASIS OF SAMPLING: -Consumers of Nike shoes are chosen randomly, so that unbiased, representativesample may be ob tained.

LIMITATIONS OF RESEARCH

The geographical area was very much limited to residential area & so the results arenot particularly reflection of the current behavior.

BIASES AND NON-COOPERATION OF THE RESPON DENTS.The collected data are placed into an order. Percentages of respondents answered

similarly are calculated andplaced in a tab le. Then this is interpreted. This involved drawing conclusion from thegathered data. Interpretationchanges the new information immerg ing from the analysis into information that ispertinent or relevant to thestudy.

Due to limited time period and constrained working hours for most of therespondents, the answers at timeswere vague enough to be ignored.Most of the people in India take their Nike Shoes in the period preceding March & so

the response to initialcontacts were not all encouraging and that has been the primary reason in theinability to quantify the results large

enough so as to deduce any relevant outcomes.

COMPANY PROFILE

NIKE INDUSTRIES LTD. ｱ A COMPANY PROFILENike India Ltd (BIL) is Indiaｵ s largest footwear company. Nike first established itself inIndia in 1931 andcommenced manufacturing shoes in Batanagar in 1936. The company has its



RECENT DEVELOPMENTSNike India has said that itｶs Faridabad and Mokamehghat units are being taken overby Fashion Shoe Private Ltdand BDCL Enterprises Pvt Ltd, respectively. The company is also enabling the buyback provision in its Articles of association to enab le buy back of shares.

The assets and liabilities of both the units will be transferred to these companiesand shares will be offered in theagreed ratio to the existing shareholders of Nike India Ltd on a record date, whichwill be fixed by the Calcutta HighCourt.

While retail sales have increased both in value and volume, wholesale sales havedeclined due to restriction of supplies as a means to recover customers ｵ outstanding. General recession andsluggish market conditions in theindustry also have had a direct impact on lower sales and profitability. Resistance of consumers to price rises inpopular volume prod ucts as well as discounts to clear slow-moving stocks andunder utilization of productioncapacity adversely affected the operational results. The lockout declared at thePeenya factory on October 1, 2007due to serious industrial relation problems and non-compliance with the tripartitesettlement has been withdrawn.

The footwear manufactured in this factory, which was shifted to the company ｵ sother factories and associatedmanufacturers, will now be gradually produced within the factory. Thecommencement of production from thisfactory will help in re-cooping the minimal loss being suffered by the company fromthis lockout.

In Simonson ｶ s words, ｳ The benefits and costs of fitting individual customerpreference are more complex and lessdeterministic than has been assumed . ｴ Thatｶ s because ｳ customer preferences areoften ill-defined and susceptibleto various influences, and in many cases, customers have poor insight into theirpreferences. ｴ In one of his recentpapers, Simonson tackles the issue of one-to-one marketing and masscustomization. Supporters of thesemarketing approaches have suggested that learning what customers want and giving them exactly what they wantwill create customer loyalty and an insurmountable barrier to competition.

But Simonson has this to say: ｳ The fact that consumer preferences are often fuzzy,unstable, and manipulatable isunlikely to change. So, the effectiveness of methods to give customers exactly whatthey (say they) want has beengrossly exaggerated. ｴ His take on the long-held assumption that ind ividualmarketing will supplant targeted

marketing is ｳ not so fast. ｴ In studies, he has learned that ｳ even when customershave well-defined p referencesand receive offers that fit those preferences, it is far from certain that the responseto such offers will consistentlybe more favorable than those directed at larger market segments. ｴ

Itｶs all psychology. Consumers with well-defined preferences may be skeptical that amarketer could matchexpectations. Those who don ｶ t know what they want may not ever see the fit withwhat the seller wants them tobuy. So, individualized offers depend on customers ｶ preferences &; how the offerwas extended &; and on trust.ｳ Effective individual marketing requires not only an understanding of individual

preferences and matching offers tothose preferences, but also a thorough familiarity with the various factors thatimpact customers ｶ responses, ｴ

Simonson writes. This is a tall order, one that some companies have been able to fill,at least to some extent. Forexample, Amazon keeps track of customers ｶ purchases and suggests other booksthey might like. Dell buildscomputers from mass-made parts to customers ｶ specifications. But Simonson arguessome com anies can take the



1,300-outlet strong retail business division along specific customer segments intoBazaar, Family, and City andFlagship stores.

Nike India has d ecided to appoint brand managers for each product group in anewfound aggression to tackledwindling sales. Each of these managers assisted by a dedicated team would be like abrand champion responsiblefor procurement, production, advertisement, promotion and re-supp ly.

Nike India has roped in Ogilvy & Mother for devising its festive season advertising,side-stepping JWT, its

incumbent agency. The job involves developing special communication directedtowards the festival seasonshoppers.

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

The footwear industry in Ind ia is highly fragmented and dominated by theunorganized sector. The industry size isaround Rs 75 Bn and is growing at around 10% annually. It competes with Indianplayers such as Liberty Shoes,

Phoenix International, Mirza Tanners, Tatas, Action Shoes and Lakhani Shoes andglobal players like Adidas,Reebok and Nike. Accessories and garments contribute footwear sales account formore than 96% of sales whilethe balance. The turnover break up is as follows ｱ

Products Volume (%) Value (%)Rubb er and Canvas 50: 30Leather 29 :57Plastic 21: 9

GROWTH DRIVERSThe company has a very comprehensive distribution network which comprises its ownand franchise stores. It has1500 showrooms, 25 wholesale dep ots and 8 distribution centers.

POPULAR BRANDSNike owns brands like Hush Puppies, Signor, Marie Claire Power, Sandak, Hawai,Naughty boy and Ambassador. Italso distributes other brands such as Nike and Lotto.Focus on middle-class and upper class Nike will continue to focus on middle and upperclass customers. It isintrod ucing ｵ budget stores ｶ which will help customers to identify with the brand. It isalso increasing focus on ruralthrust for volume growth in the low-priced footwear segment.

RISK AND CONCERNLifting of quantitative restriction on import of footwear will lead to the market beingflooded by imports. Laborissues have always b othered BIL and this resulted in disrup tion of manufacturingactivities on numerous occasions.Competition is hotting up in the domestic market due to popular brands such asGaitonde, Red Tape, Lotus Bawaand Tatas. These brands are gaining market share especially in the premium segmentand in this segment BIL hasno significant presence.

Latest Results Sales for Q3 FY2000 increa sed by 5.5% yoy to Rs1.7bn. profits dropped

by 90% yoy to Rs3.8 Mndue to lower operating margins and higher depreciation and interest. Depreciationincreased by 6.3% yoy to Rs 37Mn while interest cost increased by 9.3% yoy to Rs 23.4 Mn.

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



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

Competition is hotting up in the domestic market due to popular brands such asGaitonde, Red Tape, Lotus Bawaand Tatas. These brands are gaining market share especially in the premiumsegment and in this segment BIL hasno significant presence.

Sales for Q1 CY2001 decreased marg inally by 0.6% yoy to Rs 1590.7 mn. There wasa net loss of Rs 30.2 mn as

against a profit of Rs 39.6 mn in the corresponding period of the previous year. Theloss is due to lower op eratingmargins and higher interest.BILｶ s long-term success is dependent on the labor issue and the flexibility, which itcan adopt to meet threat of imports and competition from local footwear companies. Long term investors with atwo-year investment horizoncan accumulate the stock at current levels.

FINANCIAL HIGHLIGHTS(In Rs Million) 200012 (12) 199912 (12) 199812 (12) Q1200103Q1200003Sales 7,315.70 7,103.90 6,353.20 1590.7 1600.9

% Growth 2.98 11.82 (0.6)

Net Profit 304.60 242.60 166.30 (30.2) 39. 6% Growth 25.56 45.88 (176)EPS(Rs) 5.90 4.70 3.20 3.08% Growth 25.53 46.88

Ratios 200012 (12) 199912 (12) 199812 (12) Q300009 Q399909OPM(%) 9.77 9.08 7.16 1.09 6.9NPM(%) 4.16 3.42 2.62 2.5ROE(%) 8.95 7.44 5.31Nike und erstated 9 month losses -Brief Financials (in Rs. Mn.)Detailed QuarterlyPeriod ending (months)30-Sep-2007 (9)31-Dec-2006(12)31-Dec-2006 (12)Net sales 4980.206461.177172.91Other Income42.1063.6165.21Total Income5022.306524.777238.12Cost of goods sold4974.706471.797051.76OPBDIT47.6052.98186.36PAT-117.20-74.1039.80Gross Block-2191.072062.26Equity capital-514.22514.22EPS (Rs.)--1.440.77DPS (Rs.)-0.000.75

BV (Rs.)-37.2738.71P/E range (x)-0.0 - 0.00.0 - 0.0Debt / Equity (x)-0.320.26Operating margin (% of OI) 0.90.82.6Net margin (% of OI)-2.3-1.10.5As on 30 June 2007, the public, institutions and foreign bodies held31.23%, 13.91% and 0.16% stake in the company, respectively

LITERATURE REVIEWThe study of consumer behavior has evolved since the Information Processing Model(Bettman, 1979) assumedthat the individual is logical in his/her buying process. This model was criticized

because it failed to treat differentconsumption phenomena motivated by symbolic meanings (Holbrook andHirschman, 1982). Ind ividuals are notalways looking for efficiency and economy, but also for distraction, aesthetic,expression, etc. (Boyd and Levy,1963). Calling for a broadening of theoretical frameworks of consumer behavior,many authors pleaded in favor of

the study of all consumption forms (Holbrook, 1986), being inspired by European



teaches MBA and Ph.D. marketing and consumer decision-making courses. The loyaltyprogram article is slated forpublication in the Journal of Marketing Research this year.Online customization gives consumers the opportunity to choose characteristics theywant in a product when theyshop for it online. Many companies are looking at online customization as the future of online business Janis Crow,Kansas State University marketing instructor, researched how people make choices onthe Internet. She recentlystudied consumers in an online environment and their ability to customize severalproducts - pizza, shoes, andelectronic devices.

Crow said that her study posed two questions for respondents: first, how difficult is itto customize a product, andsecondly, how likely is the p erson to purchase the product he or she has customized?

All participants in the study chose to customize products. In terms of customers ｶ likelihood to p urchase, a greaternumber of customers made purchase decisions when there a re more options tochoose, she said. However, it wasslightly more difficult when more features were offered.

She created a website where people could customize products to their individualpreferences and needs. Crow

selected three generic products: pizza, shoes, and a Personal Digital Assistant (PDA).Thirty-one college studentstook part in the study.

"Students could customize the three products, and I provided a drop-down box on thesite with attributes tochoose from," she explained. Consumers could click on a dro p-down box to customizea product they would wantto purchase, she said. She found that more people relied on the default choices ratherthan selecting other choicesthat were offered. She said, some research suggests that many people do not want toput a lot of effort intopurchase decisions. "A lot of times, people may not have preferences already in mind,"she said. When consumershave the chance to create preferences, the question is whether they rely on previouspreferences or if they developnew ones, she said. In the future, Crow says she will be studying strategies thatconsumers go through duringpurchase decisions. "I will be studying decision processes to develop computer aidsthat could help the consumerreach their purchase d ecision," she said.

Although her current project involves analyzing the consume r behavior of collegestudents in an onlineenvironment, in future projects she p lans to analyze other demographic groups. ｴ Customization will be a keybusiness opportunity in the future for businesses online or in more typical shoppingenvironments," Crow said.

She hopes her research will help consumers in making p urchase decisions and helpbusinesses determine productsto offer and how to offer them.

Hong Kong companies, including leather consumer goods suppliers, have shown agrowing interest in tapping themainland consumer market after China's accession to the World Trade Organizationand gradual opening of itsdomestic market. For Hong Kong companies targeting this vast market, a good

understanding of the behavior of mainland consumers is necessary in order to formulate an effective and suitablemarket strategy.

In view of this, the HKTDC conducted a survey study in four major mainland cities inFebruary 2007. The study wascomposed of two interlocking surveys. The first survey (survey on shop pers)successfully interviewed a total of 1,000 shoppers of leather consumer goods in four major cities, namely Beijing (BJ),



SHOPPING TIMEThirty-eight percent of respondents visited leather consumer goods shops at leastonce a month.

Shopping during weekends is common. Other popular shopp ing occasions includeNational Day (1st October),

Chinese New Year (January/February), New Year's Day (January) and Labour Day (1stMay).

MARKETING CHANNELSPromotional activities in shopping malls and department stores are the most popularpromotional and salesactivities, followed by discount/price reduction, TV commercials, discount coupons,promotional stands, exhibitions,buy-one- (or more) gets-one-free.

PURCHASING POWEROn average, respond ents owned 4.2 pairs of shoes, 1.2 pieces of wallets, 1.3 piecesof belts and 1.3 pieces of

handbags/b riefcases. Over the past 12 months, an average respondent's spendingon leather consumer goods wasas follows:- Shoes: RMB 597 (total) RMB 328 (per pair)- Wallet: RMB 226 (total) and RMB 193 (per piece)- Belt: RMB 220 (total) and RMB 194 (per piece)- Handbag/briefcase: RMB 476 (total) and RMB 359 (per piece)

SELECTION CRITERIAWhen choosing leather consumer goods, product quality stood out as the principalconsideration for respondents,followed by product material, craftsmanship, style/design, p rice and brand.

POPULAR BRANDSMost respondents considered brands important.

4PS OF NIKE

Nike ｶ s 4Ps comprised of the following approaches to pricing, distribution, advertising and promotion, and customerservice:

Pricing: Nike ｶ s pricing is designed to be competitive to the other fashion shoeretailers. The pricing is based on thebasis of premium segment as target customers. Nike as a brand commands highpremium.

Place: Nike shoes are distributed to Multi Brand store front and the exclusive Nikestores across countries. Whilethis necessitates a second trip for the customer to come and pick up the shoes, itallows Nike to offer a much widerselection than any of the competition.

Promotion: Location, targeted advertising in the newspaper and strategic alliancesserves as the foundation of Nike

advertising and promotion effort. The athletes and other famous sports personalitiesare always taken as b randamb assadors. They form the prime building blocks of their portion strategy.

Product: The product range of Nike comprise of shoes, sports wear, watches etc. Itsproduct history began withlong distance running shoes in 1963. (Past 17 years: Air Jordan basketball shoes).Wide range of shoes, appareland equipment. For example:

Nike Oregon Digital Super WatchNike Presto Cee Digital Medium WatchNike Presto Cee Digital Small Watch

Nike Ron Analog WatchNike Triax 10 Regular WatchNike Triax Armored II Analog Super WatchNike Women's Imara Fit Digital Watch

SWOT ANALYSIS



SWOT ANALYSIS NIKE, INC.

STRENGTHSNike is a very competitive organization. Phil Knight (Founder and CEO) is often

quoted as saying that 'Businessis war without bullets.' Nike has a healthy dislike of is competitors. At the AtlantaOlympics, Reebok went to theexpense of sponsoring the games. Nike did not. However Nike sponsored the topathletes and gained valuablecoverage.

Nike has no factories. It does not tie up cash in buildings and manufacturing workers.This makes a very leanorganization. Nike is strong at research and development, as is evidenced by itsevolving and innovative productrange. They then manufacture wherever they can produce high q uality p roduct at thelowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or betterspecification), Nike will moveproduction.

Nike is a global brand. It is the number one sports brand in the World. Its famous'Swoosh' is instantlyrecognizable, and Phil Knight even has it tattooed on his ankle.

WEAKNESSESThe organization d oes have a diversified rang e of sports products. However, the

income of the business is stillheavily dependent upon its share of the footwear market. This may leave it vulnerableif for any reason its marketshare erodes.

The retail sector is very price sensitive. Nike does have its own retailer in Nike Town.However, most of itsincome is derived from selling into retailers. Retailers tend to offer a very similarexperience to the consumer. Canyou tell one sports retailer from another? So margins tend to get squeezed as retailerstry to pass some of the lowprice competition pressure onto Nike.OPPORTUNITIESProduct development offers Nike many opportunities. The brand is fiercely defended

by its owners whom trulybelieve that Nike is not a fashion brand. However, like it or not, consumers that wearNike p roduct do not alwaysbuy it to participate in sport. Some would argue that in youth culture especially, Nikeis a fashion brand. Thiscreates its own opportunities, since product could become unfashionable before itwears out i.e. consumers need toreplace shoes.

There is also the opportunity to develop p roducts such as sport wear, sunglassesand jewellery. Such high valueitems do tend to have associated with them, high profits.

The business could also be developed internationally, building upon its strong globalbrand recognition. Thereare many markets that have the d isposab le income to spend on high value sportsgoods. For example, emergingmarkets such as China and India have a new richer generation of consumers. There arealso global marketingevents that can be utilized to support the b rand such as the World Cup (soccer) andThe Olympics.

THREATSNike is exposed to the international nature of trade. It buys and sells in different

currencies and so costs andmargins are not stable over long periods of time. Such an exposure could mean thatNike may be manufacturingand/or selling at a loss. This is an issue that faces all global brands.

The market for sports shoes and g arments is very competitive. The model d



DATA ANALYSIS

1. Demography of respondents

ANALYSIS:It was observed that the majority of the respondents consist of professional fromvarious fields like engineers,

software professionals, working executive etc. who effective form 38% of our database.While 36% were stud entsfrom various fields. Others constitute designers and athletes etc. the further study iscarried on the buyingbehavior of the above mentioned categories of consumer, which shows that ourconsumer is well educated and isvery well informed about the product.

2. Consumerｶs income level and spending capacity on shoes

ANALYSIS:In the survey conducted a direct relation between the income level and the spend ingcapacity was observed. Also itwas found that students were spending in the range of Rs 1000 ｱ Rs 3000 as comparedto the working classprofessionals who were ready to spend between Rs 3000 ｱ Rs 6000, since they havehigher spend ing powerbecause of higher income levels.

SHOPPING SEASONANALYSIS:Amongst the student and the professional it was found the consumer buying BEHAVIORdoes not change withrespect to the seasons and occasion as most of the consumer would like to buy theirshoes as and when needarises, whereas the businessman generally do their shoes shopping during traveling oron special occasionｶs.

BRAND RECOLLECTION:

ANALYSIS:

When asked about reconciling a sports shoes brand about 70% of the respondent wereable to recall REEBOK orADDIDAS were as rest were able to remember NIKE and FILA brands. This was due tothe fact that REEBOK hasbrand ambassador like RAHUL DRAVID and YUVRAJ SINGH.

FACTOR INFLUENCING THE BUYING PROCESS:ANALYSIS:Among the various factors like social, psychological, personal and cultural factors itwas observed that theconsumer give more preference to his personal choice and psychological factors like50% of the people consider

comfort and they generally do not consider durability as an important aspect becausethey believe that it comesalong with the brand. Also the social factor like style was second most important factorbehind the consumerbuying motives.



4. Which brand do you generally use?

People in India prefer Nike the most as we can see that 24% % people prefer Nikesports wear. Then comes Adidasand Reebok.

5. Has any sports shoes ad (seen on TV/in a magazine) made an impact on you?

YES NO IF YES, THEN WHY NIKE 43 57ADIDAS 63 37REEBOK 45 55ACTION 30 70

Most of the people are influenced with Adidasｶs ad, then with Reebok and then Nike.The most un-influential is that

of action.

6. What according to you is the relative importance of the following?V. Imp Imp. Not so Imp. Doesnｶt matterPRICE 50 28 12 10DURABILITY 55 45 0 0BRAND IMAGE 40 20 15 15COMFORTABLE 54 36 10 0LOOKS 40 40 15 5

By this we infer that the consumer wants the shoe to be durable that is of primaryimportance for them. Then theprice is also very important for them. The shoe should be comfortable. Along withthat looks and the brand imageis also important.

7. What features of Nike do you like the most?

The most liked feature of Nike is the light weight shoe. Then it is the enhanced toesupport. From here we can infer



that most important aspect for the consumers is the comfort they get from the shoes.

8. What range you prefer?

Larg er number of people goes in for shoes that come under the range of Rs. 1500-3500. A s we know that Nike is apremium brand 27% of the buy shoes that falls under the range of Rs. 3500-7500 andlesser no. of people buyshoes ranging in between 3500 and 5500.

9. How often you buy Nike?

62% of the consumers buy Nike only once a year. Here we notice one thing that somedonｶt buy Nike.

10. Are you satisfied buying Nike?

The people who buy Nike are fully satisfied buying it, their percentage is 64%. Only 15% are not satisfied buyingit.

11. Do you think Nike serves the purpose of being a good brand, for Sports wear?

56% of the people agree that Nike serves its purpose for being a sport brand. Only 27%people donｶt agree with it.



12. I Like to buy shoes which are not very stylish but comfortable (%.of Respondents)Strongly agree 10.00Agree 30.00Indifferent 18.00

Disagree 32.00Strongly disagree 10.00

13. I Like to buy shoes which are not stylish but comfortable and long lastingStrongly agreeAgreeIndifferentDisagreeStrongly disagree

14 I Like to buy shoes which are expensive & stylish but comfortable strongly agreeAgreeIndifferent

DisagreeStrongly disagree

15 I like to buy Nike shoes which are expensive & stylish but comfortableStrongly agree 8.00Agree 24.00Indifferent 4.00Disagree 2.00Strongly disagree 2.00

16 I like to buy Nike shoes which are not very stylish but comfortableStrongly agree 12.00Agree 16.00Indifferent 2.00Disagree 8.00

Strongly disagree 2.00

17 I like to buy Nikeshoes which are not stylish b ut comforta ble and long lastingStrongly agree 8.00Agree 16.00Indifferent 2.00Disagree 12.00Strongly disagree 2.00

18 I like to buy Nikeshoes which are not very stylish but comfortableStrongly agree 14.00Agree 16.00Indifferent

DisagreeStrongly disagree

19 I like to buy Nikeshoes which are less expensive b ut very stylish & of latest design.Strongly agree 4.00Agree 10.00

Indifferent 4.00Disagree 14.00Strongly disagree 4.00



20 I like to buy Nikeshoes which are very stylish & of latest desig n.Strongly agree 2.00

Agree 6.00Indifferent 8.00Disagree 22.00Strongly disagree 2.00

21 I like to buy Tailor made shoes which are very stylish & of latest design.Strongly agree 10.00Agree 38.00Indifferent 24.00Disagree 16.00Strongly disagree 12.00

22 I will certainly buy shoes if high quality matching imitation jewelry given free.Strongly agree 36.00Agree 56.00


23 I will certainly buy shoes if high quality imported scent given free.Strongly agree 38.00Agree 60.00Indifferent 2.00Disagree 2.00


24 My expectation is fulfilled by my shoe supplier.Strongly agree 6.00Agree 24.00

Indifferent 42.00Disagree 8.00Strongly disagree 0.0025 Shoe companies should survey customer preferences.Strongly agree 24.00Agree 56.00


26 Shoe companies should suggest shoe design using celebrity.Strongly agree 32.00Agree 52.00Indifferent 14.00

Disagree 2.00Strongly disagree 0.00

27 I know exactly what I want in my shoes.Strongly agree 8.00Agree 26.00Indifferent 24.00Disagree 22.00


28 I donｶt want to sp end too much time on deciding my shoes.Strongly agree 28.00

Agree 58.00Indifferent 8.00Disagree 6.00Strongly disagree 0.00

29 Stores display is the b est form of advertisementStrongly agree 24.00Agree 48.00Indifferent 10.00Disagree 4.00Strongly disagree 0.00

30 T.V advertisement is the best form of advertisementStrongly agree 16.00

Agree 52.00Indifferent 4.00Disagree 16.00


31 Buying customized shoe by internet is very attractive.Strongly agree 24.00Agree 52.00Indifferent 4.00Disagree 16.00Strongly disagree 4.00

32 Buying customized shoe by internet is very attractive. But no spam mail.Strongly agree 16.00Agree 28.00


BIBLIOGRAPHY

BOOKS

Marketing Management - Philip KotlerConsumer Behavior, 6th Edition, by Hawkins, Best ad Coney.

WEBSITES

Nikebiz : NIKE, Inc. Official Site, the world?s largest, leading athletic brand[/url]Nike town:Business.com: - The Business Search Eng ine and Business Directory for BusinessInformation[/url]Apna Bangalore: ]Apnabangalore.com [Home][/url]Indiainfoline: Indiainfoline.com-Comprehensive inform

38732392 a summer training report

Documents