A PROJECT REPORT ON
CONSUMER BEHAVIOUR REGARDING VARIOUS BRANDED SHOES
SUBMITTED TO:
PANJAB UNIVERSITY, CHANDIGARH in partial fulfillment of requirement for the degree of
MASTER OF COMMERCE (M.COM)
SUPERVISED BY:-
SUBMITTED BY:-
Mrs. Ramjit Kaur
Jasdeep Kaur M.com 2nd SEM 2298
GURU NANAK NATIONAL COLLEGE, DORAHA
LIST OF CONTENTS CHAPTER NO.
CHAPTER NAME
CHAPTER 1
EXECUTIVE SUMMARY
CHAPTER 2
RESEARCH OBJECTIVES
CHAPTER 3
RESEARCH METHODOLOGY
CHAPTER 4
LIMITATIONS
CHAPTER 5
COMPANY PROFILE
CHAPTER 6
DATA ANALYSIS & INTERPRETATION
CHAPTER 7
SUGGESTION & CONCLUSION
CHAPTER 8
ANNEXURE
CHAPTER 9
BIBLIOGRAPHY
ACKNOWLEDGEMENT
Success is an effort bounded activity that involves co-operation of all. I hereby take the opportunity to express my profound sense of gratitude and reverence to all those who have helped and encouraged me towards successful completion of the Project Report. It has been a great experience working on the concept of CONSUMER BEHAVIOUR REGARDING VARIOUS BRANDED SHOES. It gives me complete insight of this concept of marketing and its application. I would like to thank my Project Guide Mrs. Ranjit Kaur for her immense guidance, valuable help and the opportunity provided to me to complete the project under her guidance. I would like to thank all faculty members of GURU NANAK NATIONAL COLLEGE DORAHA for guiding and supporting me in the completion of project from time to time. Last but not the least, my gratitude to great almighty and my parents without whose concerned and devoted support the project would not have been the way it is today.
JASDEEP KAUR
PREFACE The project study on CONSUMER BEHAVIOUR REGARDING VARIOUS BRANDED SHOES has been conducted to observe the preferences of consumers. This system of education is highly appreciated as it provides the students with an opportunity to acquaint them with the outside world. The practical work helps the students to view the real business world closely, which in turn widely influences their conception and perception. In this project 50 respondents are selecting for knowing their perception regarding branded shoes. For this purpose information is collected from some areas of Ludhiana.
CHAPTER-1
EXECUTIVE SUMMARY
This project takes a look in various kinds of Merchandising activities, market share of different shoes and various sales promotion schemes,
which are followed in the shoe industry. The three major players i.e. Reebok, Nike and Adidas dominate the sports shoe industry in India. India is one of few battlegrounds in the world where there is neck-to-neck competition between the three. The companies claim to be in number one sport coating the data produced by two different marketing research companies. In the 1980s, Adidas sneakers became popular amongst teenagers and young men. The Adidas sneakers were popularized by the Run DMC song “My Adidas” and became a huge fashion trend. The Tapie affair the history of the company as presented by its official web site is incomplete, perhaps because it is indirectly linked to financial scandals. After a period of serious trouble. The death of Adolf Dassler’s son Horst Dassler in 1987, the company was bought in 1990 by Bernard Tapie, for 1.6 billion French francs ($320million), which Tapie borrowed. Tapie was at the time a famous specialist of rescuing bankrupt companies, a business on which he built his fortune. Nike is the world’s #1 manufacturer and marketer of athletic footwear and apparel. Almost out of the blue, the company established itself as one of the world’s most familiar brands during the 1980s and 1990s. As familiar as a coke bottle or Big Mac, the Nike “swoosh” logo came to symbolize not just sports culture, but street culture, as the appeal of the star players who endorsed the brand was carried onto city streets. The approach of the new century set Nike new problems. Trainers went out of fashion, economic slowdown and labor problems hit Asian performance. But the group has bounced back, retaining its iron grip on the sporting apparel sector and still undisputed lender in sports-oriented street wear. Reebok is the world’s third- largest maker of sneakers, athletic shoes and sport apparel. Goods are sold under the brands Reebok, Rockport and Greg Norman Collection. Reebok is also the official outfitter of the NFL and has an exclusive deal to supply NBA jerseys beginning the season Reebok announced in July it will merge with German Sporting apparel company adidas-saloman in a deal valued at @3.8 billion. The merger is expected to be completed by the first half of 2008 and will create the second-largest sporting goods company behind Nike with @11billion in revenues. Adidas will maintain its corporate headquarter in Germany and its North American headquarters in Portland, OR Paul Fireman will remain as chief
executive officer of the Reebok international ltd. And will continue to lead the Reebok team. Reebok will continue to operate under its name and will retain its headquarters in Canton, MA. In fiscal 2008, Reebok had net income of @192.4million and sales of @3.7billion.
The Action group is one of the India's leading business conglomerates. The group commenced its operations as a source of footwear and its components in domestic and export markets, gradually moving its core other diversified fields such as: (API) Chemicals and Plasticizers, (MICROTEK ) Computer Monitors and Peripherals, Power Back Up/Inverters, (OKAYA) Batteries, (SUN CITY) Housing Projects and (SRI BALAJI ACTION MEDICAL INSTITUTE) Health Care. There are different individual companies under a common umbrella, each dedicated to a specific line of product manufacturing, procuring or other particular business activities.
CHAPTER-2
RESEARCH OBJECTIVES
The research study tends to follow and achieve specific objectives. The objectives of this particular study are:-
• To know the personal views of the people regarding various branded shoes. • To study which branded shoe is mostly preferred by people as per their choices. • Comparison between various branded shoes. •
Find out factors influencing the people at the time of purchasing shoes such as Quality, Durability, Variety, Price, And Use in Sport s.
CHAPTER-3
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem, it not only takes the research methods but also consider the logic behind the methods. The study of research methodology for developing the project gives us the necessary training in gathering materials and arranging them, participation in the field work when required, and provides training in techniques for the collection of data appropriate to particular problems.
RESEARCH PROBLEMS:- Consumer’s preference about different branded and non branded shoes.
RESEARCH METHODOLOGY:- Exploratory method. SAMPLING PLAN:SAMPLE METHODS:- Random simple sampling
SAMPLE SIZE:- 50
PRIMARY DATA:- Questionnaire Interview
SAMPLE While deciding about the sample of research, it is required from the
Researcher’s point to pay attention to these under mentioned points: a)
Sample Units: A decision has to be taken concerning a sampling
unit before selecting a sample, sampling unit may be a geographical one such as state, district, village etc. so in this research sampling unit is Ludhiana area. b)
Source of Data: Data required for the study was collected through primary sources i.e. market survey.
c)
Sampling Size: This refers to the no. of items to be selected from the universe to constitute a sample. This is a major problem before
the researcher. The size of sample should neither be excessively large not too small, it should be optimum. This size of population must be kept in view for this also limits the sample size. Sample size in this research is 50.
INSTRUMENTS USED Primary data collected through sample survey from the selected elements in malls and super markets. So for this purpose I have most popular tool of primary data collection through direct communication with respondents. The tools I used are questionnaire.
METHOD OF DATA COLLECTION Actually data is of two kinds which are followinga) Primary Data: primary data are those, which are afresh and for the first time and this happen to be original in character.
b) Secondary Data: secondary data are those data which have already been collected by someone else and which have already been used as per required. There are basically two sources to collect secondary data a) Internally: provided by company/organization b) Externally: various publication of central, state and local government. • Books, magazines, newspapers • Internet After only keeping in mind one can think about what type of data has to be collected during research as our research is concerned I have to gether primary data for customer preference.
RESEARCH INSTRUMENTS: QUESTIONNAIRE DESIGN:
As the questionnaire is self administered one, the survey is kept simple and user friendly. Words used in questionnaire are readily understandable to all respondent. I have made the questionnaire in which questions are according to the research and these are convenience for the respondent.
CHAPTER-4
LIMITATIONS
LIMITATIONS OF THE STUDY While surveying I encounter with some problems like• In some of the retail showroom it is not allowed to get the questionnaire filled. • Many of the respondents were not willing to fill the questionnaire. • Some people were not willing to respond and few of them who responded were in hurry hence the active participation was lacking. Due to which I faced difficulties in collecting information’s regarding our questionnaire.
• Another problem which I face was that people were hesitating to give information about their views freely.
CHAPTER-5
COMPANY PROFILE
Adidas INTRODUCTION Adidas was formed by German sports apparel by the founder Adi Dassler during the 1920’s. “For over 80 years, Adidas has been part of the world of sports on every level, delivering state-of-the-art sports footwear, apparel and accessories. Today, Adidas is a global leader not only in the shoe industry, but also in the sporting goods industry. Shoes from the Adidas are available in virtually every country of the world. . Besides sports footwear, the company also produces other products such as bags, shirts, watches,
eyewear and other sports and clothing-related goods. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, after its American rival Nike. The company’s clothing and shoe design typically involve three parallel stripes of the same color and the same motive is incorporated into Adidas ’official logos.
HISTORY: The history of Adidas is one of consistently meeting the evolving needs of the athlete. Focusing more on function and less on fashion, Adidas strives to provide athletes with shoes that can make a noticeable difference in their performance. Meeting athlete needs is what makes Adidas the best. The company Adidas was founded in the early 1920s as Gebruder Dassler Schuhfabrik, in Herzogenaurach in Germany. Adolf Dassler designed a pair of sport shoes in 1925 and few years later he and his brother Rudolph were selling special shoes for tennis players and began design specific shoes for different sports. The family company split in 1948. After the split, Adolf (Adi) Dassler founded Adidas and his brother Rudolph founded Puma. The three-stripe logo was designed in 1941 by Adi Dassler and he registered it as a trademark for Adidas after the split.
The strength of Adidas was its product innovation. Adi Dassler registered more than seven hundred patents. Adidas began selling its shoes in the United States after 1968 and in few years the company dominated the American market. The most important marketing breakthrough was the active promotion of global sporting events, especially the Olympics. The connection of Adidas to the Olympics has a rich heritage. At the 1972 Olympic game in Munich, every official wore Adidas.
Adidas has 107 subsidiaries in 20 countries, and exports to 160 countries. Activities of the company and its subsidiaries are directed from AdidasSalomon AG's headquarters in Herzogenaurach, Germany. Products: Adidas - footwear, apparel, and hardware such as bags and balls. Salomon - Winter sports incl. skis, snowboards, snowblades, ski boots and bindings, inline skates, hiking, apparel. Mavic -Cycle components, Bonfire - Snowboard apparel. Arc'Teryx - Outdoor apparel, climbing equipment, Cliché - Skateboard equipment, footwear and apparel, Taylor Made-Adidas Golf - Golf equipment, golf apparel, golf shoes and finally, Maxfli - Golf balls, irons and accessories.
COMPETITORS : Rudolf Dassler , Adie’s brother, founded a rival company, PUMA the chief competitors of Adidas are PUMA and NIKE. In August 2005, the company announced that it had made a deal to acquire rival REEBOK for$3.8 billion. The acquition would increase its market share in North America and allow it to further compete with Nike. This will propel Adidas to the number two spot in the foot apparel market behind Nike. Adidas’ trademark saying is ‘impossible is nothing’.
ENHANCEMENT In the 1980s, Adidas sneakers became popular amongst teenagers and young men. The Adidas sneaker was popularized by the RUN DMC song “My Adidas” and became a huge fashion trend. After a period of serious trouble following the death of Adolf Dasseler’s son Horst Dasseler in 1987, the company was bought in 1990 by Bernard Tapie for 1.6 billion French Frances ($320million), which Tapie borrowed. Tapie was at the time a famous specialist rescuing bankrupt companies, a business on which he built his fortune. Tapie decided to move production offshore toAsia.he also hired Madonna for promotion.
In 1992, Tapie was unable to pay interest from his loan. He mandated the Credit Lyonnis bank to sell Adidas, and bank subsequently converted the outstanding debt owed to equity of the enterprise, which was unusual for then-current French banking practice. Apparently, the State-owed bank had tried to get Tapie out of dire financial straits as a personal favour to Tapie,reportedly because Tapie was a minister of Urban Affairs in the French government at the time. February 1993, Credit Lyonnais sold Adidas to Robert Louis Dreyfus, a friend of Bernard Tapie, for a much higher amount of money than what Tapie owed 4.485 billion francs rather than 2.85billion. Forgetting why the bank actually bought Adidas, Tapie later sued the bank, because he felt spoiled by the indirect sale. Robert Louis-Dreyfus became the new CEO of the company. He is also the president of the Olymique de Marseille football team, to which Tapie is closely linked. Tapie went bankrupt himself in1994. He was the object of several lawsuits, notably related to match fixing at the football club. He spent 6 months in La Santé prison in Paris in1997.
POST -TAPIE ERA In 1997, Adidas AG acquired the Salomon Group, and its corporate name was changed toAdidas-Salomon AG. In August 2005, Adidas declared its intention to buy Anglo-American rival Reebok for US$3.8 billion. This takeover was completed in august 2005 and meant that the company will now have closer business sales as those of Nike in Northern America. The acquisition of Reebok will also allow Adidas to compete with Nike Worldwide. World cup 1954 when West Germany miraculously won the soccer 1954 World Cup, their footwear was supplied by Adidas. These shoes introduced a technological breakthrough: studs with screws.When weather were good and pitch was hard, the shoes were equipped with short studs; when it rained; longer studs were screwed on the bottom of the shoes. As the final game against the
highly-favoured team from Hungary was played in heavy rain, this gave the German players a firmer hold on the slippery pitch.
Celebrities: Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. Adidas use David Bekham as their brand ambassador and many more celebrities in every region to promote their product. Adidas already has heavy weight sportsmen such as Sachin Tendulkar, Leander Paes & Mahesh Bhupathi endorsing the brand in India. They had the image, apart from endorsing the performance element in the brand. Adidas steps out of crease with a clear sports positioning.
ADIDAS IN INDIA Adidas entered the Indian market in 1996 by setting up a 100% subsidiary of Adidas AG called Adidas India Ltd. and announced its joint venture with Magnum International Trading Company Ltd. on October 1, 1996. The new joint venture – Adidas India Ltd. – was incorporated with an initial investment of US $ 205 million with Adidas India Ltd. holding 80% of the equity and Magnum holding the balance 20%. This investment was raised to US $ 6.4 million with the equity structure remaining the same. Currently, the total investment stands at US $ 11.4 Million with the equity structure changing to 91.4% by Adidas and 8.6% by magnum. Adidas’ Range of Products in India: A month after announcing the joint venture, Adidas India Ltd. launched its range of sports footwear, apparel and accessories in New Delhi on November 1, 1996. Subsequently, Adidas products were also launched in Mumbai, Bangalore, Chennai, Hyderabad and Calcutta. Currently, Adidas products are available in 30 cities in India.
The range of Adidas products available in India include sports footwear featuring some of the most popular innovations and technologies developed by Adidas such as Feet You Wear, Torsion system and adi wear. The sports footwear available in India includes a wide range of core categories such as adventure, basketball cricket, golf, indoor, running, tennis, training, soccer and workout. Adidas has introduced in India, a wide range of sportswear for both men and women. These include apparel for athletics, basketball, cricket, golf, running, soccer, swimming, tennis and training for Men and women.
BRAND VALUE AND STRATEGY OF ADIDAS: Brand value and strategy of Adidas Ag, a leading producer of sports apparel. In 2006, Adidas owned another big brand Reebok for more than 3.5 million dollars. The brand value of Adidas Ag, the leading leisure wear, sports footwear and equipment producer across the globe is currently almost 2748 million dollars. The company's brand name is Adidas and it is displayed with a trefoil logo. This logo, a very popular one, is a signature of Adidas' brand. It had been launched in 1972. The new Adidas logo, three stripes running across its several products, was introduced in 1991. In 2006, Adidas acquired the Reebok brand for 3.8 million dollars. In 2007, Adidas repositioned its Reebok brand to attract the consumers of
athletics apparel. Moreover, the company adopted several plans to expand its brand name .Adidas has given lot of emphasis on advertising. The strong brand management has successfully branded the company over the world. Adidas has introduced several market campaigning ideas, for example, the "Run Easy" campaign for the Reebok brand. After acquisition, the main challenge was to avoid the competition between the past two rival brands, Reebok, the producer of athletics' sneaker, and Adidas. But Reebok's brand managers have not only successfully done that but also they increased the brand value of both Reebok and Adidas.
A HAWK EYE VIEW In 1998, Adidas sued the NCAA over their rules limiting the size and number of commercial logos on team uniforms and apparel. Adidas withdrew the suit, and the two groups established guidelines as to what three-stripe designs would be considered uses Of the Adidas AG
ADIDAS Type Public Founded
1949
Location
Herzogenaurach, Germany
Key people
Adolph Dassler, founder Herbert Hainer, CEO
Robin Stalker , CFO Andreas Gellner , Managing Director , India Industry Products
Textile Footwear Accessories
REEBOK INTODUCTION Reebok is the world’s third-largest maker of sneakers, athletic shoes and sports apparels. Good are sold under the brands Reebok, Rockport, and Greg Norman Collection. Reebok is also the official Outfitter of the NFL and has an exclusive deal to supply NBA jerseys beginning this season. Reebok announced in July it will merge with German sporting apparel company adidas-saloman in a deal valued at $3.8 billion. The merger is expected to be completed by the first half of 2006 and will create the second-largest sporting goods company behind Nike with$11billion in revenue. Adidas will maintain its corporate headquarters in Germany and its North American headquarters in Portland, OR. Paul Fireman will remain as Chief
Executive officer of Reebok international Ltd. And will continue to operate under its name and will retain its headquarters in canton, MA. In fiscal 2004, Reebok had net income of $192.4 million and sales of $3.7 billion.
HISTORY: Reebok’s origins go back to 1895 when Joseph William Foster made running shoes with spikes in them. He formed a company called J.W.Foster and sons which made shoes for athletes in the 1924 summer Olympics. In 1958, two of the founder’s grandsons started a companion company that came to be known as Reebok, named for an African gazelle. In 1979, Paul Fireman, a partner in an outdoor sporting goods distributorship, spotted Reebok shoes at an international trade show. He negotiated for the North American distribution license and introduced three running shoes in the U.S that year. At $60, they were the most expensive running shoes on the market. By 1981, Reebok’s sales exceed @1.5 million, but a dramatic was planned for the next year. In 1982, Reebok introduced the first athletic shoe designed especially for the women; a shoe for a new fitness exercise called aerobic dance. The shoe was called the freestyle, and with it Reebok anticipated and encouraged three major trends that transformed the athletic footwear industry: the aerobic exercise movement, the influx of women into sports and exercise and the acceptance of well-designed athletic footwear by adults for street and casual wear. Reebok went public in 1985. The Chairman and CEO of Reebok was Paul Fireman. He was the one to introduce the Freestyle in 1980 he was the founder and innovator of Reebok. He left his position in 2006 and sold Reebok to Adidas for $3.8 billion. Paul Harrington took his place in April for two years. In March 2008 Uli Becker became CEO of Reebok. He is now responsible for Reebok brands business around the world, and he reports to the chairman and
CEO of the Adidas group. The top 3 CEO connections are Mr. John Warren who is the chief financial officer and general manager of sports licensed division, Mr. Terry R. Pillow senior vice president, and Mr. Rick Paterno senior Vice President. The top five shareholders are Bardwil Industries Inc, Dr. Martens Airwair USA, llc, Native Intimates Ltd., Welspun USA, Ins., Alpha Mills Corporation. Its headquarters are in Canton, Massachusetts, U.S.A. its regional offices are in Amsterdam, Montreal, Hong Kong, and Mexico City.
REEBOK'S VISION Reebok is dedicated to providing each and every athlete - from professional athletes to recreational runners to kids on the playground with the opportunity, the products, and the inspiration to achieve what they are capable of. We all have the potential to do great things. As a brand, Reebok has the unique opportunity to help consumers, athletes and artists, partners and employees fulfill their true potential and reach heights they may have thought un-reachable.
REEBOK’S MISSION At Reebok, we see the world a little differently and throughout our history have made our mark when we’ve had the courage to challenge convention. Reebok creates products and marketing programs that reflect the brand’s unlimited creative potential.
REEBOK'S POSITIONING Celebrate Individuality in Sport and Life Reebok understands that people are, above all, unique. Reebok’s positioning reflects this; celebrating the distinct qualities that make people who they are - their unique points of view, their individual style and their remarkable talents and accomplishments. Reebok celebrates their individuality, their authenticity and the courage it takes to forge their own
path to greatness. While some may call them crazy or eccentric, Reebok calls them visionary and original.
REEBOK'S PURPOSE To Empower Global Youth to Fulfill their Potential Commitment to Corporate Responsibility is an important legacy and hallmark of the Reebok brand. For two decades, Human Rights, through the Reebok Human Rights program, were the primary focus of this effort. Reebok has expanded on what had been built and created a Global Corporate Citizenship platform with a purpose for the brand that will help underprivileged, underserved youth around the world fulfill their potential and live healthy, active lives.
REEBOK'S BRAND TERRITORY Having Fun Staying in Shape Having Fun Staying in Shape comes to life through a fun, bold, provocative manner expressed through fresh, eye catching imagery signed off with a unique 'Reeword.' The tone and manner allows the consumer to look at sport and lifestyle through our lens of 'Ree.'
Reebok Shoes Industry - Fastest Growing Industries In India: Reebok shoes company offers a wide range of shoes, apparels and accessories and the prices of these stuffs depend upon the design, comfort and material used. Reebok shoes, apparels and other accessories in India are expensive when we compare it with other brands but still are popular and the choice of the elite class of the society. Now a day the shoe price
starts from Rs.1000 and goes up to Rs.15000 depending upon the kind of shoes one is looking for. The brand has achieved great recognition amongst youngsters, middle aged and old people because of its comfort, fitting characteristics and style. To distinguish themselves from the other brands, Reebok also offers a wide range of apparels for both men and women keeping into consideration the latest fashion, style and brand image. The company is manufacturing jackets, t-shirts, sweat shirts, pull over’s, tracksuits, wind cheater etc. in different designs and colours. Prices of these apparels depend upon the quality and style of the product being taken. During season sale the company also offers discounts on these products.
Recent Activities of Reebok a) In 2009, Reebok launched JUKARI Fit to Fly, an innovative gym workout designed for all women with one single objective – to make fitness for women fun again. JUKARI, the result of a long-term relationship between Reebok and the globally renowned entertainment company. b) In 2009, Reebok launched the EasyTone footwear collection that allows consumers to "take the gym with them." The EasyTone technology involves two balance pods under the heel and forefoot of the shoe that create a natural instability with every step, which Reebok claims forces the muscles to adapt and develop tone. c) In April 2008 Reebok launched its online store in UK and France. In January 2009 Reebok had extended the store to Germany, Austria, Netherlands, Belgium and Ireland and had also introduced Your Reebok – an application to design your own Reeboks.
d) For the 2008–09 season, Reebok created the Reebok Edge 2 uniform system, for National Hockey League's players. The league adopted the jersey and now all teams sport the new style for both their home and away jerseys. e) In July 2007, Reebok launched its Lifestyle Footwear Collection in association with Daddy Yankee's new album. In December 2007, Reebok launched the GOAL Collection of football gear on the release of the Indian football movie Dhan Dhana Dhan Goal. f) In June 2007, Reebok announced Scarlett Johansson on its array of brand ambassadors. Johansson promotes the Scarlett 'Hearts' Rbk" collection, a 'fashion-forward, athletic-inspired' footwear targeted at the Indian market.
NIKE INTODUCTION Nike is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. It is the world's leading supplier of athletic and apparel and a major manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Castparts are the only Fortune 500companies headquartered in the state of Oregon, according to The Oregonian. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bower man and Philip Knight, and officially became Nike, Inc.
on May 30, 1978. The company takes its name from Nike the Greek goddess of victory. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008.[4] In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo.
HISTORY Nike, originally known as "Blue Ribbon Sports", was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making most sales at track meets out of Knight's automobile. The company's profits grew quickly, and in 1967, BRS opened its first retail store, located on Pico Boulevard in Santa Monica, California. By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS prepared to launch its own line of footwear, which would bear the newly designed Swoosh by Carolyn Davidson. The Swoosh was first used by Nike on June 18, 1971, and was registered with the U.S. Patent and Trademark Office on January 22, 1974. The first shoe sold to the public to carry this design was a soccer shoe named Nike, which was released in the summer of 1971. In February 1972, BRS introduced its first line of Nike shoes, with the name Nike derived from the Greek goddess of victory. In 1978, BRS, Inc. officially renamed itself
to Nike, Inc.. Beginning with Ilie Năstase, the first professional athlete to sign with BRS/Nike, the sponsorship of athletes became a key marketing tool for the rapidly growing company. The company's first self-designed product was based on Bowerman's "waffle" design. After the University of Oregon resurfaced the track at Hayward Field, Bowerman began experimenting with different potential outsoles that would grip the new urethane track more effectively. His efforts were rewarded one Sunday morning when he poured liquid urethane into his wife's waffle iron. Bowerman developed and refined the so-called 'waffle' sole which would evolve into the now-iconic Waffle Trainer in 1974.
By 1980, Nike had reached a 50% market share in the U.S. athletic shoe market, and the company went public in December of that year. Its growth was due largely to 'word-of-foot' advertising (to quote a Nike print ad from the late 1970s), rather than television ads. Nike's first national television commercials ran in October 1982 during the broadcast of the New York Marathon. The ads were created by Portland-based advertising agency Wieden+Kennedy, which had formed several months earlier in April 1982. Together, Nike and Wieden+Kennedy have created many print and television advertisements and the agency continues to be Nike's primary today. It was agency co-founder Dan Wiedenwho coined the now-famous slogan "Just Do It" for a 1988 Nike ad campaign, which was chosen by Advertising Age as one of the top five ad slogans of the 20th century, and the campaign has been enshrined in the Smithsonian Institution. San Franciscan Walt Stack was featured in Nike's first "Just Do It" advertisement that debuted on July 1, 1988. Wieden credits the inspiration for the slogan to "Let’s do it", the last words spoken by Gary Gilmore before he was executed.
Throughout the 1980s, Nike expanded its product line to include many other sports and regions throughout the world.
PRODUCT Nike produces a wide range of sports equipment. Their first products were track running shoes. They currently also make shoes, jerseys, shorts, baselayers etc. for a wide range of sports including track and
field, baseball, ice hockey, tennis, association football (soccer), lacrosse,basketball and cricket. Nike Air Max is a line of shoes first released by Nike, Inc. in 1987. The most recent additions to their line are the Nike 6.0, Nike NYX, and Nike SB shoes, designed for skateboarding. Nike has recently introduced cricket shoes, called Air Zoom Yorker, designed to be 30% lighter than their competitors'. In 2008, Nike introduced the Air Jordan XX3, a high-performance basketball shoe designed with the environment in mind. Nike sells an assortment of products, including shoes and apparel for sports activities like association football, basketball, running, combat sports, tennis, American football, athletics, golf and cross training for men, women, and children. Nike also sells shoes for outdoor activities such as tennis, golf, skateboarding, association football, baseball, American football, cycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing and other athletic and recreational uses. Nike is well known and popular in youth culture, chav culture and hip hop cultureas they supply urban fashion clothing. Nike recently teamed up with Apple Inc. to
produce the Nike+ product which monitors a runner's performance via a radio device in the shoe which links to the iPod nano. While the product generates useful statistics, it has been criticized by researchers who were able to identify users' RFID devices from 60 feet (18 m) away using small, concealable intelligence motes in a wireless sensor network. In 2004, they launched the SPARQ Training Program/Division. Some of Nike's newest shoes contain Flywire and Lunarlite Foam. These are materials used to reduce the weight of many types of shoes.
MANUFACTURING Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia Nike is hesitant to disclose information about the contract companies it works with. However, due to harsh criticism from some organizations like CorpWatch, Nike has disclosed information about its contract factories in its Corporate Governance Report.
A Hawk Eye view Type: Traded as:
Public NYSE: NKE
Industry:
Clothing and Sports equipment
Founded:
1964 (as Blue Ribbon Sports)
Founder(s) :
William J. "Bill" Bowerman Philip H. Knight
Headquarters:
Washington County, Oregon, United States
Area served:
Worldwide
Key people:
Philip H. Knight (Chairman) Mark Parker (President and CEO)
Products:
Athletic shoes Apparel Sports equipment Accessories
Revenue:
US$ 19.014 billion (FY 2010)
Operating income:
US$ 2.517 billion (FY 2010)
Net income US$:
1.907 billion (FY 2010)
Total assets:
US$ 14.419 billion (FY 2010)
Total equity:
US$ 9.754 billion (FY 2010)
Employees :
34,400 (May 2010)
Website
Nike.com
:
ACTION PROFILE OF THE ORGANISATION: “A relentless race against time.The burning passion to win..A strong desire to set the trends...
No wonder , life is all Action...." What one needs is a partner that's always on the move, that tracks your Every move, just right and smartly too. And that's exactly the inspiration behind our trendy footwear collection ranging from performance sport shoes to semi-formal and formal footwear for men, women, teenagers and kids. Ultimate in design, comfort, and fit. Action shoes not only look good but also are good for your feet. Each Action product is the manifestationof our high standards of workmanship, access to latest technology. That's how Action issynonymous with maximum quality and performance.... and of course that essential look.So gets into Action. And feel free to walk on the rough roads of life. Surely you'll be thewinner.
ABOUT THE COMPANY: The Action group is one of the India's leading business conglomerates. The groupcommenced its operations as a source of footwear and its
components in domestic and export markets, gradually moving its core other diversified fields such as: (API) Chemicals and Plasticizers, (MICROTEK ) Computer Monitors and Peripherals, Power Back Up/Inverters, (OKAYA) Batteries, (SUN CITY) Housing Projects and (SRI BALAJI ACTION MEDICAL INSTITUTE) Health Care. There are different individual companies under a common umbrella, each dedicated to a specific line of product manufacturing, procuring or other particular business activities. Today the group strategy is to be competitive and to be a leader in the quality of goods and services provided
ABOUT COMPANY’S WORKINGS: With over three decades of experience in footwear industry, Action is synonymous with quality shoes for the whole family-ranging from casuals to formals; from daily wear to sportswear and from an elegant collection for ladies to a fun range for kids. True to its name Action is always on the move to scale newer heights in footwear designing and manufacturing. Intensive R& D efforts and the latest technology go into the making of Action footwear. We have in house manufacturing facilities, including modern equipments and machineries specially procured from different countries to manufacture footwear at par with international class and quality. Each Action shoe is the product of a relentless quest for quality, high level of workmanship and a true commitment to customer satisfaction. At Action we strive to listen to the customers in their local markets and identify their footwear needs and then provide products that exceed the customer's expectations in terms of quality, style and value. Hardly surprising, Action has carved a special niche in the Indian footwear market and in the hearts of millions of its consumers throughout the country.
COMPANY’S LOCATION: Action is headquartered in Delhi, supported by multiple manufacturing and development units in rest of the states like - Haryana, Himachal Pradesh and Daman etc. A number of its executives are based in customer geographies with the express purpose of creating and nurturing channel partners as well as customers relationship.
STRATEGIC INTENT VISION To nurture a financially strong, growth oriented group through leadership and innovation and to widen future options by entering newly emerging industries where the potential seems enormous. We as a group shall continue to seek opportunities where we can leverage our resources.
MISSION At Action group our mission is to work together, respecting each other, our skills and knowledge to:-
• Build higher quality of products and services • Continually strive to enhance customer satisfaction.
• Improve customer retention and loyalty. • Gain a competitive advantage and larger market share • Elimination of scrap, waste, defects and errors. • To create a great place to work. • Be welcomed in the communities in which we operate.
VALUES How we accomplish our mission is as important as the mission itself. Fundamental to the success for the company are these basic values. Teamwork Learning and Innovation Energy and Passion Employee involvement in process improvement. Integrity and accountability.
MARKET POSITIONING Action has consistently used "COMPLETE FAMILY FOOTWEAR" positioning and continues to use it. The company virtually makes shoes for the entire family- more precisely-for everyone- for all occasions.
DISTRIBUTION NETWORK To complement our philosophy of catering to every walk of life, our powerful distribution network is mushroomed far and wide. Action has established a wide marketing network for distributing its products in India. The extensive distribution network, built over the years, is a major strength for Action products. Action products are available to consumers, even in the most remote places and in the smallest of villages with a very meager population. The distribution network comprising of DISTRIBUTORS, WHOLESALERS, RETAILERS AND EBO's throughout the country, ensures that the customer wherever located is served efficiently. We have network of more than50,000 retail outlets all over India to sell our footwear, which is being sold through more than500 distributors appointed by the company.
CHAPTER-6
DATA ANALYSIS AND INTERPRETATION
AGE Age considered as an important factor which affects the buying habits of individuals like as preferences of young persons are differ as compared to old ones. AGE (IN YEARS) 15-25 26-35
FREQUENCT OF RESPONDENT 23 27
PERCENTAGE OF RESPONDENTS 46 54
INTERPRETATION: Analysis indicate that out of 50 respondents 23 persons belongs to age group between 15-25 and another 27 persons belong to age group of 26-35 years old. Teenagers like to wear sports shoes and younger people prefer to wear formal shoes. EDUCATION LEVEL OF RESPONDENTS Education greatly influenced the choice, preference and habit of a person. Many living habits learn from education. Education makes him aware about the running fashion. EDUCATION LEVEL U. GRADUATE GRADUATE POST GRADUATE ANY OTHER
FREQUENCT OF RESPONDENT 19 16 5 10
PERCENTAGE OF RESPONDENTS 38 32 10 20
INTERPRETATION: Studies revealed that 38% respondents are under graduate and they prefer to wear sport shoes. There are 32% persons are graduate and they wear shoes according to latest fashion and 10% respondents are post graduate and they prefer to wear formal shoes. There are 20% respondents who belong to another field of courses.
TYPE OF FAMILY Family is a group comprising a husband and wife and their dependent children, constituting a fundamental unit in the organization of society. TYPE OF FAMILY NUCLEAR JOINT
FREQUENCY OF RESPONDENTS 27 23
PERCENTAGE OF RESPONDENT 54 46
INTERPRETATION: Family plays an important role in decision making. Data consists of 54% nuclear families where family members take their own decisions and have enough money to spend. There are 46% respondents come from joint families and they take buying decision according to budget of the family.
MARITAL STATUS Marriage is a social union or legal contract between people that creates kinship. MARITAL STATUS MARRIED
FREQUENCY OF RESPONDENTS 19
PERCENTAGE OF RESPONDENT 38
UNMARRIED .
31
62
INTERPRETATION: Data consists of 38% married respondents who buy branded shoes after considering price and other attributes of the product. And another 62% respondent takes their own decision and they spend money according to their will.
INCOME LEVEL For household and individual income is the sum of all the wages, salaries, profits, interest’s payments, rents and other forms of earning received in a given period of time? INCOME (IN 000) 5-10 10-15 15-20 20&ABOVE
FREQUENCY OF RESPONDENTS 10 12 13 15
PERCENTAGE OF RESPONDENT 20 24 26 30
INTERPRETATION: Data indicate that 20% belong to income category of Rs 5-10and 24% fall between Rs 10-15. There is 26% fall between income categories of 15-20. And another 30% come under income group of 20&above. Low income group prefer to wear unbranded shoes
TYPE OF SHOES LIKE TO WEAR Type of shoe a customer wants to wear depends upon his choice and profession. TYPE OF SHOES
FORMAL SPORTS CASUAL ANY OTHER
FREQUENCY OF RESPONDENT
PERCENTAGE OF RESPONDETS
20 14 12 4
40 28 24 8
INTERPRETATION: It is analyzed that 40% peoples prefer to wear formal shoes and these shoes are mostly referred by businessmen and professionals. Sports shoes are first preferred by young hunks, sportsmen and college going students. Casual shoes are worn on special occasions.
PRESENT CONSUMERS OF BRANDED SHOES Branded shoes represent status symbol of a person in the society. RESPONSES
FREQUENCY OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
YES NO INDIFFERENT
34 10 6
68 20 12
INTERPRETATION: The analysis showed that 68% consumers like to wear branded shoes. There are other 20% consumers who never wear branded shoes and 12% not even conscious about branded shoes. .
BRAND AWERENESS OF RESPONDENTS A consumer can buy any product only when he or she aware about the availability of that product in the market. BRANDS
FREQUENCY OF RESPONDENTS
PERCENTAGE OF RESPONDENT
NIKE 30 60 ACTION 24 48 ADIDAS 38 76 REEBOK 31 62 ANY OTHER 12 24 (NOTE:-%vary because respondents are free to tick more than one option)
INTERPRETATION: Analysis revealed that Adidas is most popular brand among consumers so it serves 76% customers. NIKE and REEBOK have also strong place in the market and they both fetch 60% and 62% customers respectively. There is also strong competition among them. There are 48%of the consumers are aware about Action shoes.
BRAND LIKE THE MOST A customer like only that brand which provide him or her more satisfaction as compared to other brands available in the market. BRANDS
FREQUENCY OF RESPONDENT
PERCENTAGE OF RESPONDENTS
NIKE ACTION ADIDAS REEBOK ANY OTHER
11 5 19 13 2
22 10 38 26 4
INTERPRETATION: The image of the brand affects the purchasing decision; study concludes that Adidas is popular brand among other brands and 38% respondents using it. There are 26% customers wearing Reebok shoes, 22% wearing Nike shoes and 10% wearing Action shoes. There is 4% respondent wearing other shoes.
PURCHASING PLACE PLACE
FREQUENCY OF RESPONDENT
PERCENTAGE OF RESPONDENTS
DEPARTMENTAL STORE ORDINARY SHOWROOM EXCLUSIVE SHOWROOM ANY OTHER
9
18
17
34
20
40
4
8
Place play an important role in the marketing of products.
INTERPRETATION: Most of the consumers prefer to buy branded shoes from exclusive showroom and their percentage is 40% and 34% like to buy from ordinary showrooms and 18%, consumer go to departmental stores.
ADVERTISING MEDIA Advertising is the art of influencing human action to buy or possess ones product. The term ‘media’ refers to the mean through which the advertising information is communicated by the advertiser to the prospective customers. TYPE OF MEDIA
FREQUENCY OF RESPONDENT
PERCENTAGE OF RESPONDENTS
ADVERTISEMENT
13
26
FRIENDS SALES PERSONS EXCLUSIVE SHOWROOM ANY OTHER
9 19 9
18 38 18
NIL
NIL
INTERPRETATION: Analysis revealed that 38% of the total respondents become aware about particular brands through salespersons, 26%through advertisement, 18% through friends, and another 18% through exclusive showroom.
AFFECT OF ADVERTISEMENT ON BUYING DECISION Advertising provides maximum information about the availability of products to consumers, so they can select appropriate products. RESPONSES
FREQUENCY OF RESPONDENT
PERCENTAGE OF RESPONDENTS
YES NO
36 14
72 28
INTERPRETATION: To measure the effective of advertisement it is necessary to know the effect of advertisement on the consumer, as study indicates 72% are those whose purchasing decision is affected by advertisement and 28%respondent’s decision is not affected by advertisement.
EFFECT OF PRICE Price may be defined as money consideration asked for or offered or exchanged for a specified unit of a good or service. Prices are generally determined by market conditions. RESPONSES
FREQUENCY OF RESPONDENT
PERCENTAGE OF RESPONDENTS
YES NO
39 11
78 22
INTERPRETATION: Analysis shows that 78% respondents change their purchasing decision if there is any increase in price and 22%respondents do not change their decision even if there is any increase in price because of brand image. REPURCHASE PERIOD Purchasing decision of consumer depends upon the income level of the consumer. REPURCHASE PERIOD
ONCE A YR TWICE A YR THRICE A YR SEASONAL SPECIAL OCCASION
FREQUENCY OF RESPONDENT
18 14 2 12 4
PERCENTAGE OF RESPONDENTS
36 28 4 24 8
INTERPRETATION: Most of the consumer purchase once in a year and their percentage is 36% and 28% purchase twice a year, 4%thrice a year, 24% purchase seasonally and 8% purchase on special occasions.
FACTORS AFFECTING THE PURCHASING DECISION Price and quality of the product are the main factors which affect the final decision of the consumer. FACTORS
LARGE EXTENT(3)
PRICE 28 QUALITY 45 SIZE 50 DESIGN 26 COLOR 19 DURABILITY 35 AVAILABILITY 38 BRANDIMAG 29 E
SOME EXTENT(2)
LEAST EXTENT(1)
WEIGHTED AVERAGE
13 5 17 18 10 8 19
9 7 13 5 4 2
2.38 2.9 3 2.38 2.1 2.6 2.68 2.54
INTERPRETATION: Studies reveals that price, quality, size, design, durability, availability and brand image fall between large extent and some extent, other attributes like colors of the shoes lies between the some extent and least extent.
CUSTOMER SATISFACTION LEVEL FROM DIFFERENT ATTRIBUTES OF A PRODUCT Customer is king of the market so he wants maximum satisfaction from the product that he buys. FACTORS
HIGHLY SATISFI ED (5)
SATISFI ED (4)
NEUTR AL (3)
DISSATISFI ED (2)
HIGHLY DISSATISFI ED
WEIGHT -ED AVERA GE
PRICE BRAND IMAGE QUALITY SIZE COMFOR T DURABILI TY
7 23
23 15
17 7
2 5
1 _
3.64 4.12
18 17 25
21 19 17
11 13 8
1 -
-
4.14 4.04 4.34
15
27
8
-
1
4.14
INTERPRETATION: A Study show that consumers are not highly satisfied with the prices of branded shoes but they are satisfied with other attributes to large extent. BRAND LOYALTY Brand loyalty refers to that a customer being permanent consumer of brand and he never switch over to other brand.
RESPONSES
FREQUENCY OF RESPONDENT
PERCENTAGE OF RESPONDENTS
YES NO
21 29
42 58
INTERPRETATION: Study indicates that only42% is the loyal customers and 58% will change their brand if all the qualities are available with the new products.
CHAPTER-7
SUGGESTIONS AND CONCLUSION
FINDINGS, SUGGESTIONS AND CONCLUSION RESEARCH FINDING: After assessing the overall market scenarios what came in picture was as follows: • Consumer reaction suggests that Adidas is the marker leader among all its close counterparts in the sport shoes and apparel segments. • NIKE is chasing its position most aggressively so now it requires maintaining its position with new stuff. • ADIDAS has been major competitor for NIKE and REEBOK. • 60% Customers are still pro NIKE believer. • The new stuff of the ADIDAS is attracting the consumers more which might lead ADIDAS at the top spot in the pack in coming financial year. • Consumers are not showing that kind of craze in ACTION for past few years. • Probably it could be because of the aggressive attention snatched by brands like NIKE and ADIDAS especially in India. • Celebrities also affect the sale of brand .ADIDAS shoes promoted by David Beckham. • 72% respondents take their buying decision after considering the advertisement of brand.
• Most of respondents prefer to purchase shoes from exclusive showrooms. • Businessman, serviceman and professionals prefer to wear formal shoes because of status and students like to wear only sports and casual branded shoes.
SUGGESTIONS: •
Department stores are the prime sales and marketing channel for branded shoes. In addition, store decorations and product displays should be designed to create a strong first impression.
•
Seasonal promotion campaigns, like special discounts and advertisements, could be employed. New lines of collections should be introduced for festivals.
• The prices of branded shoes must be reduced to increase sales.
Conclusion “THE BOTTOM LINE” OF THE MARKET RESEARCH SPEAKS THAT BRANDED SHOES IN INDIA HAS BEEN INCREASING ON DAY BY DAY BASIS. THAT SOUNDS GOOD FOR INTERNATIONAL AS WELL AS DOMESTIC MARKET
CHAPTER-8
ANNEXURE
QUESTIONNAIRE PERSONAL PROFILE I.
NAME
:
II.
AGE
:
III.
ADDRESS
:
IV.
TELEPHONE
:
V.
OCCUPATION
:
VI.EDUCATION Under Graduation Post Graduate VII.TYPE
Graduate Any other
OF FAMILY
NUCLEAR
VIII.MARITAL STATUS
Joint Family
Married
Unmarried
Any other
IX.FAMILY INCOME (RS. Per month) 5000-10000 10000-15000 15000-20000 20000 & above
1.
Which type of shoes do you like to wear? Formal Casual
2.
Sports Any Other
Do you wear Branded Shoes? Yes
No
Indifferent
3.
Are you Aware about the following Brands of Shoes ? Nike
Adidas
Action
Reebok
Any Other 4.
Which Brand does you like the most? Nike
Adidas
Action
Reebok
Any Other
5. Up to what extent do you consider following features of Brand while purchasing? Large Extent
Some Extent
Least Extent
Price Quality Size Design Color Durability Availability Brand image Special offers
6.
How do you get aware about this particular Brand ? Advertisement Friends Any Other
Sales Persons Exclusive Showrooms
From where do you like to purchase your Branded
7.
shoes? Departmental Stores
Ordinary Showrooms
Exclusive showrooms
any Other
Do you think advertisement effect your purchasing
8.
decision? Yes
No
How often do you buy branded shoes?
9.
Once a Year
10
Twice a Year
Thrice a Year
Seasonally
Special occasion
any other
. Up to what extent have you satisfied by the following attributes? Highly
Satisfied Price Brand image Quality Size Comfort Durability Any Other
Satisfied
Neutral
Dissatisfied
Highly dis -satisfied
11. Where is any increase in price of this brand, is that Effect your purchase decision? Yes
No
Indifferent
12. Would you like to buy another brand if all the attributes
Are Available in other brand? Yes
No
Chapter-9
BIBLIOGRAPHY
BIBLIOGRAPHY The list of reference for the purpose of completing this marketing project is as given below: BOOKS: Marketing management
By: Philip Kotler
Marketing management
By: J.C Gandhi
Functional management
By: R.K.Sharma
INTERNET: www.google.com www.wlkipedia.com www.paradise.com NEWSPAPER:
Economic times
