business statistics ii

BUSINESS STATISTICS II

SEMESTER: 4SECTION: 2ROLL NO: 194-204TOPIC: NIKE V/S PUMA

ACKNOWLEDGEMENT With the deepest gratitude we wish to thank our

professors Dinesh Sir, Neha Ma’am and Bhaktida Ma’am for their constant support and guidance.

They have inspired and illuminated us through their presence and have given us such a great opportunity to analyze/study the Business Statistics.

INTRODUCTION & SUMMARY Objective- To analyse the performance of 2

Companies

To understand practically how to use statistics in business to our advantage.

To increase our analytical skills , by analysing data through different tools & method.

Our 2 Companies are NIKE & PUMA

Sector- Footwear

Product- Shoes

DESCRIPTIVE STATISTICAL CONCEPTo A set of brief descriptive coefficients that summarizes a

given data set, which can either be a representation of the entire population or a sample.

o Descriptive research includes surveys and fact finding enquiries of different kinds.

o We have used hypothesis testing as a major tool to find the results.

ANALYTICAL RESEARCH Use the facts or information already

available, and analyse these to make a critical evaluation of the material.

Research between the two variables are analysed after selecting the dependent and independent variable.

We have research about sales and profit of two companies and have regression analysis on it.

METHODS USAGE

Primary method

Secondary method

SECONDARY DATA OF NIKE

Years Gross Profit(in cr.)

Sales(in cr.)

2005 39929 857242006 42924 933042007 46356 1018582008 54342 1162142009 56089 1196392010 57399 1191902011 61579 1301582012 67880 1505472013 72060 157909

GRAPHICAL PRESENTATION OF SALES AND GROSS PROFITS OF NIKE COMPANY

2005 2006 2007 2008 2009 2010 2011 2012 20130

20000

40000

60000

80000

100000

120000

140000

160000

180000

GROSS PROFIT(IN CR.)SALES(IN CR.)

ANALYSIS

Regression StatisticsMultiple R 0.994009125R Square 0.988054141Adjusted R Square 0.98634759Standard Error 1275.865193Observations 9

Coefficients

Standard Error

T-stat P- value

Lower 95%

Upper 95%

Intercept

1941.125

2261.87

0.858 0.4191 -3407.34

7289.59

Sales 0.4477 0.018 24.06 5.45 0.40 0.49

SECONDARY DATA OF PUMA

Years Gross Profit(in cr.)

Sales(in cr.)

2005 6557 168272006 8448 194222007 8753 19102008 9215 195162009 8897 184802010 9508 191412011 10563 212812012 11168 231282013 9813 21113

GRAPHICAL PRESENTATION OF SALES AND GROSS PROFITS OF PUMA COMPANY

2005 2006 2007 2008 2009 2010 2011 2012 20130

5000

10000

15000

20000

25000

GROSS PROFIT(IN CR.)SALES(IN CR.)

ANALYSISRegression StatisticsMultiple R 0.929772425R Square 0.864476762Adjusted R Square 0.845116299Standard Error 521.4121371Observations 9

Coefficients

Standard Error

T-stat P- value

Lower 95%

Upper 95%

Intercept

-4196.05

2014.28

-2.08 0.075 -8959.08

566.96

Sales 0.68 0.10 6.68 0.00028

0.4375

0.9168

PRIMARY DATA

We have done a survey of 300 peoples.

A questionnaire was circulated through a google form and as many as 300 respondents were came.

As many as 10 questions were asked in he questionnaire.

Here is the graphical analysis of that questions which were asked.

Which brand do you prefer in shoes?

NikePumaOthers

54(18%)

162(53%)

126(42%)

From where did you buy sports shoes?

InternetShopOthers

82(28%)

12(4%)

246(82%)

Outdoor

Gym

Sports

Others

0 40 80 120

160

200

For what purpose you wear shoes?

Purpose of shoes

21(7%)

119(40%)

90(30%)

185(61%)

Colour Design Comfort Durability0

50

100

150

200

250

300

What is the most important re-quirement you look in a shoe?

Important requirement

118(39%)

246(82%)

111(37%)

84(28%)

Daily

Weekly

Monthl

y

Occasio

nnaly

020406080

100120140

Usage of shoes

Usage of shoes

137(46%)

72(24%)

45(15%)

75(25%)

500-1500 1500-3000

3000-5000

5000+0

20

40

60

80

100

120

140How much do you spend on shoes?

Spending on s...

124(41%)

106(35%)

62(21%)52(17%)

Good

Average

Very good

Excellent

0 20 40 60 80 100

120

140

160

How will you rate your product?

Product Rating

50(17%)

24(8%)

158(52%)

98(33%)

Upto 1 year

1-2 years 2-5 years 5+ years0

20

40

60

80

100

120

140

160

How much do you rate your product in terms of average life?

Average life

37(12%)

142(47%)

101(34%)

35(12%)

Do you normally switch over to this brand for shoes?

YesNo

PRIMARY DATA HYPOTHESIS TESTING Hypothesis testing on spending done by

consumers on their particular product.

F-Test Two-Sample for Variance

NIKE PUMA

Mean 2283.33 2750Variance 1859039.6 2275423.7Observations 60 60Df 59 59F 0.81700807P(F<=f)one tail 0.2199F Critical one-tail 0.6493

ANALYSIS Statistical inquiry: In this case we are

finding, if variances in the spending done by the customers for NIKE and PUMA shoes is equal or not. Thus we are finding the amount of rupees spend by customers while purchasing the shoes of NIKE and PUMA is similar or not.

Target populations:

Population 1: Customers of NIKE Population 2: Customers of PUMA

Type of population: Infinite and homogeneous

Statistical parameter: variance  Null hypothesis Ho: There is no significant

variation in the spending done by the consumers while purchasing Nike and Puma shoes.

Alternative Hypothesis H1: There is a significant variation spending done by the consumers while purchasing Nike and Puma shoes.

CONCLUSION Statistical test: Test of significance of

difference between Variances of two independent populations.

Type of the test: Two – tailed test Rule-We do a two-tail test (inequality). If f

cal< F Critical two-tail, we accept the null hypothesis.

Decision-Therefore in this case, 0.81 >0.64. Therefore, we reject the null hypothesis.

Conclusion- we conclude that, the spending done by the customers while purchasing the product are not the same, and there is significant variation’s in the spending.

OBSERVATIONS AND FINDINGS People prefer Nike shoes over Puma shoes

because of higher durability and better quality.

Huge need of shoes in coming days as majority of the consumers prefer shoes for daily use.

Nike company has a huge amount of revenue and gross profit compared to Puma company.

Nike is better than Puma in terms of selling of shoes.

SUGGESTIONS AND INNOVATIVE DEAS Puma Company should come up with new

ideas and innovations in producing shoes to satisfy consumers in buying the product and also to increase their revenue and their gross profit too.

Nike Company should go with the flow and should also come up with new quality of shoes which will make their consumers more suitable and loyal to the company.

While less number of consumers are opting for puma brand for shoes, they should analyse the needs of a consumer want in shoes.

BIBLIOGRAPHY

http://www.wikinvest.com/stock/Nike_(NKE)/Data/Key_Metrics

https://docs.google.com/forms/d/1Pequ4qiiM8f4eCxRtgJU9uahlZ2ujS7sM2110F-fuhI/viewanalytics

http://about.puma.com/en/investor-relations/financial-reports