< “MARKETING STRATEGY FOR NIKE SHOES” >
A PROJECT REPORT Under the guidane !E"IYANI ROTHAGI Guide Regi#trati$n N$% & M'A!()))* Su+,itted by Ra-inder Pa. Singh Regi#trati$n N$% & /0)1))0231
In partial fulfillment of the requirement For the award of the degree O4 M'A IN 5Finane6 Mar7eting6 Hu,an Re#$ure Manage,ent6In4$r,ati$n S8#te,6 'an7ing6Retai. O9erati$n#6O9erati$n# Manage,ent6Pr$:et Manage,ent6T$ Manage,ent6T$ta. ;ua.it8 Manage,ent
SMU Sikkim Manipal University Directorate of Distance ducation
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'ONAFI!E CERTIFICATE CERTIFICATE
!erti !ertifi fied ed that that this this pro"ec pro"ectt repor reportt entit entitle led d “MARKETING STRATEGY STRATEGY FOR NIKE SHOES# is the $onafide work of RA"IN!ER PA( SINGH% REGISTRATION REGISTRATION NO%&
who carri carried ed out the pro"e pro"ect ct work work und under er my sup superv ervisi ision on in the partia partiall /0)1))0231 who fulfilment of the requirement for the award of the Masters of &usiness 'dministration (M&') * (SMU University)
SIGNATURE SIGNATURE Head of the Department FACULTY IN CHARGE
Mr. Mr. Gara! Ne"# M$. De!#yan# Rohta"#
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!EC(ARATION
I +avin +avinder der ,al Sing Singh h $earin $earing g +eg-no +eg-no.* .* /0)1))0231 here$y declare that this pro"ect report entitled has $een prepared $y me towards the partial fulfilment fulfilment which is $eing su$mitted in partial fulfillment of the requirement for the award of the Master of &usiness 'dministration(M&') Degree under the guidance MS? !E"IYANI ROTHAGI
I also declared that this pro"ect report is my original work and has not $een previously previously su$mitted for for the award of any Degree% Diploma% Diploma% fellowship or other other similar titles-
RA"IN!ER PA( SINGH
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ACKNO@(E!GEMENT
' lot of effort has gone into this training report- My thanks are due to many people with whom I have $een closely associated- I would like all those who have contri$uted in completing completing this pro"ect- First of all% I would like to send my !E"IYANII ROTHAGI for his helpful hand in the sinc sincer eree than thanks ks to MS? !E"IYAN
completion of my pro"ectI would like to thank my entire $eloved family / friends for providing me monetary as well as non 0 monetary support% as and when required% without which this pro"ect would not have completed on time- 1heir trust and patience is now coming out in form of this pro"ect-
RA"IN!ER PA( SINGH
REGISTRTION NO%&/0)1))0231
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EECUTI"E SUMMARY
1his marketing strategic plan has $een written keeping in mind the Indian operations of 2ike Inc- 0 the glo$al sports shoe giant- It aims first% at analy3ing the sports shoe industry India and finding a place in it for 2ike- It then sets out to descri$e the target audience for the product range and finally suggests a host of marketing strategies and activities that will help 2ike to achieve its target of $ecoming the 45 sports shoe $rand in India-
1he plan $egins with a $rief overview of the product category $eing dealt with% namely premium quality sports shoes- It also dwells $riefly on the history of the company and its current position and activities-
1he pro"ect moves on to the cru6 of the matter 0 the marketing plan to $e followed $y 2ike in IndiaIndia- Firstly% Firstly% the o$"ectives o$"ectives $ehind this plan and the core core strategy are are stated!ustomers to $e eventually targeted are descri$ed and compared with competitors7 customer targets- 'fter starting the o$"ectives and reasoning $ehind them% the actual marketing programs are descri$ed in detail- 1his includes aspects such as pricing% advertising% promotion% sales% channels% and the company we$site- Suggestions are made on each and every one of these aspects8 improvements and innovations are recommended1he plan then goes on to the customer analysis section- 1he customer $ase is identified and various segments are pointed out- 9arious criteria and factors have $een taken into consideration while segmenting the market- :e have also tried to ascertain why customers $uy these products% how they choose% and what factors matter most when making their decisions1he last few pages of this marketing plan deal with the various ways in which the plan% once once implemented% implemented% can $e monitored monitored and controlled controlled-5
CONTENT S?NO
PARTICU(ARS
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CHAPTER B / INTRO!UCTION TO STU!Y
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CHAPTER&1 PRO'(EM STATEMENT
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CHAPTER B RESEARCH METHO!O(OGY
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CHAPTER BD COMPANY PROFI(E
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CHAPTER&3 RE RESU(T > !I !ISCUSSION
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CHAPTER&2 SUGGESTION AN! RECOMMEN!ATIONS
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CHAPTER B (IMITATION > SCOPE OF FUTURE RESEARCH
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(IMITATION
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SCOPE OF FUTURE RESEARCH
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CHAPTER B * CONC(USION
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Indian !ouncil of 'pplied conomic +esearch
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Indian Institute of 1echnology
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!ouncil of Scientific 'nd Industrial +esearch
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Doctor of ,hilosophy
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6ploratory Factor 'nalysis
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!@',1+*5 I21+DU!1I2 1 S1UDA 1he pro"ect has $een a learning e6perience for me and would not have $een possi$le without the support and guidance of the a$ove mentioned people- 2eedless to say% I alone remain responsi$le for any error that might have crept into the pages% despite of my $est possi$le efforts to avoid themth em10
1his 1his marketi marketing ng researc research h pro"ect pro"ect report has $een writte written n keeping keeping in mind mind the Indian operations of 2ike 0 the glo$al sports shoe giant- It aims first% at analy3ing the sports shoe industry of India and finding a place in it for 2ike- It then sets out to descri$e the target audience for the product range and finally suggests a host of marketing strategies and activities that will help ,uma to achieve its target of $ecoming the 2o*5 shoe $rand in India-
/?/ Intr$duti$n Since the late 5Gs% &usiness School marketing professor Itamar Simonson has looked for ways to understand how consumers make choices- Much of his work de$unks the accepted theory that giving consumers what they want and making a profit are the most $asic principles of marketing- !ustomers may not know what they want% and second* guessing them can $e e6pensive% says the professor professor who teaches marketing marketing and consumer consumer decision decision*ma *making king coursescourses- In Simonso Simonson7 n7ss words% words% “The “The +en +ene4i e4it# t# and $#t $#t## $4 4ittin 4itting g indi-idua. u#t$,er 9re4erene are ,$re $,9.e and .e## deter,ini#ti than ha#
1hat at77s $ecau $ecause se Kcust Kcustom omer er prefer preferenc ences es are are often often ill*d ill*defi efine ned d and +een a##u,ed? a##u,ed?” ” 1h suscepti$le to various influences% and in many cases% customers have poor insight into their preferences-# In one of his recent papers% Simonson tackles the issue of one*to*one marketi marketing ng and mass mass customi customi3ati 3ationon- Supporte Supporters rs of these these marketi marketing ng approach approaches es have suggested that learning what customers want and giving them e6actly what they want will create customer loyalty and an insurmounta$le $arrier to competition
/?1 O+:eti-e# $4 the Stud8 1o the main o$"ective of this study is learn the strategic plan that has $een written keeping in mind the Indian operations of 2ike 0 the glo$al sports shoe giantIt aims at analy3ing the sports shoe industry India and finding a place in it for 2ike1o study target audience for the product range and finally suggests a host of marketing strategies and activities that will help 2ike to achieve its target of $ecoming 45 sport shoe $rand in india1o understand the nature of pro$lem faced $y customers towards the various products of 2IL1o study the nature of customer satisfaction efforts implemented $y 2IL for its customers-
/? S$9e $4 the Stud8 1he pro"ect report $egins with a $rief overview of the product category $eing dealt with% namely premium quality shoes- It also dwells $riefly on the history of the company and its 11
current position and activities1he pro"ect moves on to the cru6 of the matter 0 the marketing plan to $e followed $y 2ike in India- Firstly% the o$"ectives $ehind this plan and the core strategy are stated- 'fter stating the o$"ectives and reasoning $ehind them% the actual marketing programs are descri$ed in details1his includes aspects such as pricing% advertising% promotion% sales% channels% and the company we$site- Suggestions are made on each and every one of these aspects8 improvements and innovations are recommended1he pro"ect report then goes on to the customer analysis section- 1he customer $ase is identified identified and various segments are pointed out- 9arious criteria and factors have $een taken into into consid considera erati tion on whil whilee segme segmenti nting ng the marke markett- :e have have also also trie tried d to ascer ascertai tain n why why customers $uy these products% how they choose% and what factors matter most when making their decisions1he last few pages of this marketing research pro"ect deal with the various ways in which the recommendations% once implemented% can $e monitored and controlled-
/?D (i,itati$n $4 the Stud8 1he collected data are placed into an order- ,ercentages of respondents answered similarly are are calcu calculat lated ed and and place placed d in a ta$le ta$le-- 1h 1hen en this this is inte interpr rpret eted ed-- 1h 1his is involv involved ed draw drawin ing g conclusion from the gathered data- Interpretation changes the new information immerging from the analysis into information that is pertinent or relevant to the study-
Due to limited time period and constrained working hours for most of the respondents% the answers at times were vague enough to $e ignored-
Ceographical scope of the study was limited to a small area% which may not represent the whole sector of India8 Si3e of the sample is % which is% of course small in comparison to entire populationDue to limitation of time only few people were selected for the study- So the sample of consumer was not enough to generali3e finding of the study1here can $e many interpretations / e6planations to the data collected- 1his is empirical study and the research provides the e6planation as understood $y the researcher only-
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1he source of data for the study was primary data with the help of self*administered questionnaire- @ence% the chance of $iased response cannot $e eliminated through all necessary steps were taken to avoid the same1he data taken from the secondary source like internet% newspaper% $ooks may lack some proper e6planation or may $e not properly interpretedin terpreted1he responses of customers are presented in a way convenient to the researcher and can $e interpreted in different ways-
!@',1+*; ,+&BM ,+&BM S1'1 S1'1M21 M21 1 PRO'(EM STATEMENT INC(U!ING (ITERATURE RE"IE@ Simonson tackles the issue of one*to*one marketing and mass customi3ation- Supporters of these marketing approaches have suggested that learning what customers want and giving them e6actly what they want will create customer loyalty and an insurmounta$le $arrier to competition- 1his marketing research pro"ect report has $een written keeping in mind the 13
Indian operations of 2ike Inc- 0 the glo$al sports shoe giant- Since the late 5Gs% &usiness Schoo Schooll marke marketi ting ng profes professor sor Itam Itamar ar Simo Simonso nson n has looke looked d for ways ways to und under ersta stand nd how consum consumer erss make make choic choiceses- Mu Much ch of his work work de$un de$unks ks the accep accepte ted d theor theory y that that givin giving g consumers what they want and making a profit are the most $asic principles of marketing!ustomers !ustomers may not know what they want% and second*guessing second*guessing them can $e e6pensive% e6pensive% says the professor who teaches marketing and consumer consumer decision*making decision*making courses- In Simonson7s Simonson7s words% K1he $enefits and costs of fitting individual customer preference are more comple6 and less deterministic than has $een assumed-# 1hat7s $ecause Kcustomer preferences are often ill*defined and suscepti$le to various influences% and in many cases% customers have poor insight into their preferences-# pre ferences-# In one on e of his recent papers% Simonson tackles tack les the issue issu e of one*to*one marketing and mass customi3ation- Supporters of these marketing approaches have suggested that learning what customers want and giving them e6actly what they want will create customer loyalty and an insurmounta$le $arrier to competition-
CHAPTER B RESEARCH METHO!O(OGY ?/ CONCEPT OF RESEARCH METHO!O(OGY +esearch will comprise defining and redefining pro$lems% formulating hypothesis or suggested solutions% collecting% organi3ing and evaluating data8 making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating- In short% the search for Lnowledge through $"ective and Systematic method of finding solutions to a pro$lem is +esearch- S'M,B SI '2D S'M,BI2C 1!@2IJUS. 1he num$er of items selected from the universe to represent the universe is 14
called si3e of the sample- It is not feasi$le to cover all the customers of 2IL- So for the purpose of this study% stu dy% a total of respondents responde nts will $e approached- 1he sampling technique used for the study will $e convenience con venience samplingsamplin g- D'1' D'1' !BB!1I2. For the study% $oth primary and secondary secondar y data will $e collected- For primary pri mary data% a questionnaire can $e developed and administered to the respondents who are the customers of 2IL in Delhi $y the way of interview method- For secondary data% e6isting literature in form of maga3ines% papers% company literature% literatu re% $ook% we$ sources will $e consultedco nsulted- Juestion relating to customer $ehaviour towards 2ike shoes can also $e included- JUS1I22'I+. For conducting the primary customer satisfaction survey for 2IL S@S% a structured questionnaire with multiple choices related to overall satisfaction level of customers% their grievances related to products offered $y 2IL% etc- will $e asked- 1he questionnaire will $e administered using interview technique- JUS1I22'I+ DSIC2 F+MUB'1 F+MUB'1I2 Under this method% list of questions pertaining to the survey will $e prepared consumers of shoes- Juestionnaire will have structured type questions as well as unstructured type questions- Structured o$"ective type questions will $e prepared for the respondents with fi6ed response categories- Some of the questions will $e of multiple*choice type- 1he questions will have more than one alternative- +S'+!@ I2S1+UM21S Selected instrument for Data !ollection for nline survey is Juestionnaire- S1,S FBB:D I2 !M,B1I2C 1@ S1UDA Internet sites containing information on 2ike shoes / marketing will $e $rowsed- Sample survey will $e conductedco nducted- Data will $e thoroughly thoroug hly checked for errorerro r- D'1' D'1' ,+!SSI2C M1@DBCA nce the primary data will $e collected% they will $e edited 0 inspected% corrected and modified- 1a$ulation 0 $ring similar data together and totalling them in meaningful categories- Juestionnaires will $e edited- 1he responses will $e thoroughly checked in home for incorrect% inconsequential or contradictions categories will $e developed only often the replies has $een $ een reviewed 1he collected data will $e placed p laced into an order- ,ercentages of respondents answered similarly will $e calculated and placed in a ta$le- 1hen it will $e interpreted- 1his will involve drawing conclusion from the gathered data- Interpretation changes the new information emerging from the analysis into information that is pertinent or relevant to the study+esearch comprise defining and redefining pro$lems% formulating hypothesis or suggested solutions8 collecting% organi3ing and evaluating data8 making deductions and reaching conclusions8 and at last carefully testing the conclusions to determine whether they fit the formulating @ypothesis15
In short% the search for Lnowledge through $"ective and Systematic method of finding solutions to a pro$lem is +esearch-
?1 RESRARCH HYPOTHESES A hypothesis is a specifc, testable prediction. It describes in concrete terms what you expect will happen in a certain circumstance. ' research hypothesis is hypothesis is the statement created $y researchers when they speculate upon the outcome of a research or e6periment- very true e6perimental design must have this statement at the core of its structure% as the ultimate aim of any e6periment1he hypothesis is generated via a num$er of means% $ut is usually the result of a process of inductive reasoning where o$servations lead to the formation of a theory- Scientists then use a large $attery of deductive methods to methods to arrive at a hypothesis that is testa$le testa$le%% falsifia$le falsifia$le and and realistic-
FICU+ 5-5 ,urpose of a @ypotheses
The Purpose Purpose of a Hypothesis
A hypothesis is used in an experiment to defne the relationship between two variables. The purpose o a hypothesis is to fnd the answer to a question. A
ormalized hypothesis will orce us to think about what results we should look or in an experiment.
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The frst variable is called the independent variable . This is the part o the experiment that can be chaned and tested. The independent variable happens frst and can be considered the cause o any chanes in the outcome. The outcome is called the dependent variable . The independent variable in our previous example is not studyin or a test. The dependent variable that you are usin to measure outcome is your test score. !et"s use the previous example aain to illustrate these ideas. The hypothesis is testable because you will receive a score on your test perormance. It is measurable because you can compare test scores received rom when you did study and test scores received rom when you did not study. A hypothesis should always# •
$xplain what you expect to happen
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%e clear and understandable
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%e testable
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%e measurable
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And contain an independent and dependent variable
How to Develop a Hypothesis
Another important aspect o a hypothesis is that it should be based on research. &emember that the purpose o a hypothesis is to fnd the answer to a question. The frst thin you should do i you want to answer a question is to fnd as much inormation on the topic as you can. %eore you come up with a specifc hypothesis, spend some time doin research. Then, start thinkin o questions you still have. Ater thorouhly researchin your question, you should have an educated uess about how thins work. This uess about the answer to your question is where your hypothesis comes rom. 17
!et"s imaine that you want to know why the leaves on the tree in your ront yard chane color in the all. 'irst, you would research this phenomenon. (ou observe what you see happen and read about the sub)ect. (ou discover that the color chane happens when the temperature cools. *hat question does this inormation make you ask+ (ou come up with the ollowin question# "oes temperature cause the leaves to chane color on the tree in my ront yard+" -ext, you ask yoursel i this can be tested. I it can be tested, you"ll write a hypothesis that states what you expect to fnd. (our hypothesis could be "I lower temperatures cause leaves to chane color and the temperature surroundin a tree is decreased, then the leaves will chane color."
How to Write a Hypothesis
!et"s learn how to properly write a hypothesis usin the previous example o tomorrow"s test. $xamine the dierences in the ollowin hypotheses# Not studying may cause a lower grade on my test. This statement is not clear enouh to be useul. (our hypothesis should be as specifc as possible. (ou"re tryin to fnd the answer to a question. I the hypothesis is vaue, it"s unclear how to fnd the answer to your question. If I do not study, then I will make a low grade on the test. This statement makes a common mistake. (ou have written a simple cause and eect prediction that is based on an unstated assumption. (ou are assumin that not studyin lowers test perormance. (ou want to minimize these assumptions when you state your hypothesis. A hypothesis is clearer i you state a proposed relationship beore makin the prediction. very true e6perimental design must have this statement at the core of its structure% as the ultimate aim of any e6periment18
1he hypothesis is generated via a num$er of means% $ut is usually the result of a process of inductive reasoning where o$servations lead to the formation of a theory- Scientists then use a large $attery of deductive methods to methods to arrive at a hypothesis that is testa$le testa$le%% falsifia$le falsifia$le and and realistic-
? RESEARCH MO!E( :hen selecting the research method it is usually advisa$le to consider whether you can $ase your work on an earlier theoretical model model-- Sometimes a model% even a preliminary one% can help your work decisively% and in such a case it will also affect the logical process of analysis1here are three alternatives which are discussed in more detail later on. •
e6ploratory research (you have no model to start with)%
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e6panding or refining an earlier model% model% and
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research for testing hypotheseshypotheses-
E9.$rat$r8 Re#earh
+esearch is e6ploratory when you use no earlier model as a $asis of your study- 1he most usual reason for using this approach is that you have no other choice- 2ormally you would like to take an earlier theory as a support% $ut there perhaps is none% or all availa$le models come from wrong conte6tsn the other hand% even when there is relevant theory and models% sometimes you may prefer not to use them- +easons for this can $e. •
Aour Aour goal is to d$u,ent the o$"ect as completely as possi$le% not restricting the description to those topics that have $een documented in earlier studies-
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1he o$"ect of study differs from all earlier studied o$"ects- 1he goal of the study is to descri$e its ee9ti$na. harater which e6isting theories are una$le to portray- In the light of e6isting theories the o$"ect of study appears as an ine6plica$le anomaly-
•
Phen$,en$.$gia. pursuit into deep understanding and distrust on earlier
descriptions and e6planations-
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6ploratory research means that hardly anything is known a$out the matter at the outset of the pro"ect- Aou then have to $egin with a rather vague impression of what you should study% and it is also impossi$le to make a detailed work plan in advance1he gradual process of accumulating intelligence a$out the o$"ect of study means also that it will $e impossi$le to start $y defining the concepts of concepts of studystud y- Aou have to start with a preliminary notion of o f your o$"ect of study% and of its conte6t- During the e6ploratory e 6ploratory research pro"ect% these provisional provis ional concepts then gradually gain precisionprecis ionIn the a$sence of tried models and definite concepts you must start the e6ploratory study from what you have. one or more o$"ects of study- It is common that in the $eginning of e6ploratory study you will take a holistic look at the o$"ects- It means that you start $y gathering as much information a$out the o$"ects as possi$le% and postpone the task of cutting away unnecessary data until you get a $etter'ny o$"ect can $e looked at from several different viewpoints% either from the angles of various esta$lished sciences or "ust from miscellaneous practical points of view- 's soon as possi$le% you should specify the viewpoint of o f your study and e6plain how you understand or or NtakeN the o$"ect- 1his does not mean that you have to to start your work $y clarifying the essence of your o$"ect of study% i-e- what the o$"ect really is- Instead% you should try to
contemplate and clarify how you #ee the o$"ect. should it $e defined on micro level as a result of the individualsO instincts% drives and e6periences% or may$e on macro macro level as an e6pression of development in society1he method of alternating point of view (like in the diagram a$ove) can even $e used as a research method- It is especially suited to an e6plorative researcher working alone- It will deepen his understanding and can sometimes reveal valua$le new aspects to the topic% cf@ermeneutic +esearch+esearch1he progress of a pro"ect of study $ecomes easier as soon as you have defined your point of view and your problem. 'fter this% you will need to gather only such empirical knowledge that is related to the pro$lem8 that will ena$le you to restrict the material you will have to analyse- 1his does not mean that you should disregard all the cases that do not fit into your con"ectures * sometimes anomalies or surprising cases can point the way to important amendments or corrections to e6isting theory-
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Sometimes it is difficult to define what is relevant in advance8 it only $ecomes apparent through analysis- In such a case you can simply start $y studying one single specimen or case which illustrates the interesting pro$lem% and then you continue studying a gradually growing num$er of o$"ects until it $ecomes apparent that you cannot get deeper into the pro$lem- 'n indication of such a "saturated" state of study is that the study of new items or cases no longer reveals new interesting information- Aou will often need to gather quite a lot of material $efore you can define the final goal of your pro"ect% and a large part of this material will not $e used in the final analysis1he e6ploratory ana.8#i# of empirical field o$servations starts $y checking that the field reports are written down intelligi$ly and without am$iguity- ften the original reports have $een made in hurry8 in that th at case they should $e clarified c larified $y the initial o$server o $server or interviewer1he same person is often $est adapted to e6tricate the significant findings from o$servations $ecause hePshe is a$le to "udge which details are important and which can $e left out- In the same time hePshe can start $uilding a preliminary model from those patterns which seem to recur often% or estimate how well an earlier known model fits the o$servations's soon as the invariance in the data $ecomes apparent you can omit all the material that is no longer relevant and compress the remaining% relevant information- 1his compacting is usually done with the help of coding the the typical and frequent elements% that is $y assigning short names% letters or other sym$ols to them- &y cross*ta$ulating the sym$ols you can get an overall view of all the material% and it will $e easier to uncover its structure or rearrange it so that a latent structure $ecomes visi$le'nalysis in e6ploratory research is essentially abstraction and generalization. '$straction means that you translate the empirical o$servations% measurements etc- into concepts8 generali3ation means arranging the material so that it disengages from single persons% occurrences etc- and focuses on those structures (invariances (invariances)) that are common to all or most of the casesIt will seldom $e possi$le to divide e6ploratory study into such clear phases clear phases as as is common in the case that the o$"ect has $een studied earlier- 'ccording to 'lasuutari 'lasuutari (5 (5 p-;;)% in qualitative analysis of empirical findings% you can distinguish two phases $ut these two overlap. •
simplification of o$servations 21
•
interpretation of results (or Nsolving the enigmaN)
In the simplification phase% the material is inspected from the theoretical point of view of the study pro"ect% and only the points relevant from this angle are noted- Details differing from one individual to another at random are omitted or pushed aside so that the general lines of the data can $e discerned more easilySimplification continues $y finding the relationships $etween separate o$servations or casesSome tools for this work are comparison and classification classification-- 1he goal is to find the general rule or model model that that is valid in all or most of the o$servations- 1his model can $e% for e6ample% development or development or evolution% causality causality%% or a conscious action to attain an outcome which is typical in normative normative research research- ** In any case the analysis starts from separate cases and aspires to create one or a few general modelsNSolving the enigmaN does not always mean answering e6actly those questions that were asked at the outset of the pro"ect- Sometimes the most interesting questions are found at the end of the research% when the researcher has $ecome an e6pert on the su$"ect- It is often said that Ndata teach the researcherN1he purpose of de#ri9ti-e e6ploratory research is to e6tract a structure from the source material which in the $est case can $e formed as a rule that governs all the o$servations and is not known earlier (per the definition of e6ploratory study)- Finding the unknown structure may need some creative innovation% $ecause even the most sophisticated computeri3ed analysis methods cannot automatically uncover which type of structure is concealed in dataUsually you first have to formulate a tentative pattern for the assumed structure in the o$servations and then you can ask the computer to estimate how well the data corresponds to the model% cf- 1o 1ools ols for 'nalysisIn n$r,ati-e studies the e6ploratory approach is unusual% $ecause the normative target * improving something in the o$"ect * in general engages with a known theoretical $ackground which you can take as a $asis of your study% thus shifting to the usually more effective method of +esearch on the &asis of arlier 1heory which 1heory which is e6plained in the ne6t paragraph 2evertheless% sometimes it happens ha ppens even in normative study s tudy that the direction of desira$le improvement is initially unclear% and your only choice is to start with the e6ploratory approach- Such is the situation when you know that the present state of the o$"ect of study is unsatisfactory $ut you do not know e6actly what is wrong in it% neither do you know of any 22
superior usa$le su$stitutes for it- For e6ample% in the initial stage of action research every$ody perhaps agrees that the present mode of working is un$eara$le $ut all known remedies seem inapplica$le% and the participants therefore start making from empty ta$le a descriptive model of the work to $e used as a $asis of developmentRe#earh $n the 'a#i# $4 Ear.ier The$r8
Many of the pro$lems of e6ploratory research can $e avoided if the researcher can start with a model% model% developed developed in earlier studies% which he uses as a Nworking hypothesisN- 1he model can either consist of cases (holistic model) or of concepts (analytic model)- During the analysis% the researcher tries to see whether the collected material conforms to the model or must he correct the model or look for a more suita$le one-
Figure5-;
1he :orld :orld of 1heories
ften the study simply proceeds $y enlarging an earlier model- ' good rule to $e followed in such a situation is. Start from what is known. Proceed by enlarging the mapped area, and connect the new intelligence to the known facts. Sometimes all that you need is only an
ad"ustment of a few details in the e6isting model- 1his is often the case when the study shall give grounds for a forecast forecast or or new product new product development and the environment of intended application is slightly different from the one of the earlier study1he e6istence of a tentative model helps in selecting the logical structure of the entire research pro"ect and planning and planning it it- 1he model helps you to decide which material has to $e collected% from which cases or specimens and a$out which attri$utes or varia$les of these cases- ven the recording of o$servations is facilitated $ecause often you will $e a$le to
23
utili3e earlier definitions definitions of of varia$les- 1he same applies to analysis methods. often you can $orrow them from earlier worksworks In de#ri9ti-e study the pro"ect is often arranged as distinct phases% like in the diagram a$ove- First you demarcate the population a$out population a$out which you need knowledge% then select a sample% gather the empirical data% data% analy3e them% perhaps with the same method as in the earlier study from which the model was taken% and finally assess the findingsfindings'dopting models from earlier treatises involves a risk. it can affect your o$servations so that you wrongly discard the anomalies or those cases which too much differ from what would $e e6pected on the $asis of the old theory- If this happens% you will never discover the weaknesses of the old model-
Figure5- Material ,rocess and Monetary ,rocess In n$r,ati-e study models are used for descri$ing the e6isting pro$lems and defining the improvements to the o$"ect of study- If you can find an e6isting descriptive model of the o$"ect% made in an earlier study% you can often transform it into a normative model $y adding an evaluative dimension to it- For e6ample% the model of industrial production on the right can $e made normative $y adding the dimension dimension of profita$ility% and a target for it- Methods for analy3ing information and evaluations with normative models are discussed in 2ormative !ase Study % Study % 2ormative 2ormative !omparison % !omparison % 2ormative 2ormative !lassification % !lassification % 2ormative 2ormative Study of 9aria$les and 9aria$les and 2ormative 2ormative @istory-
24
nce the target for development has $een defined with the help of a normative model% the pro"ect often continues contin ues as planning the practical p ractical operations% perhaps p erhaps also reali3ing them and measuring the results- Sometimes the same model can $e used as a $asis of all these operations% like in the figure on the left% $ut usually you will have to refine a model successively several times in the process of transforming a definition of goals into a plan of action or into a design of a product- 1he latter process% for e6ample% can include such phases as product as product concept% concept% various drafts of design of design%% a series of prototypes prototypes and finally a detailed proposal for the productpro ductptimally a normative research pro"ect proceeds through successive stages. 5- e-a.uati$n of the initial state and defining the need for improvements ;- ana.8#i# of relationships and possi$ilities to change things - #8nthe#i#% proposal for improvement =- e-a.uati$n of the final stateIt is quite usual that you will have to repeat the a$ove sequence several times $efore you get an accepta$le result- 2ormative pro"ects often deal with comple6 practical pro$lems% and when making a theoretical model of the pro$lem% the researcher may wish to make the model more easily managea$le $y simplifying it% i-e- $y leaving out factors that seem nonessential@owever% in the final practical test or appraisal it may turn out that an e6cluded factor is important after all% which makes it necessary to ad"ust the model and repeat the sequence once moreH89$the#i# +a#ed Stud8
Sometimes the o$"ect of study is already well known and you "ust want to investigate its $ehaviour in a specific situation- In such a situation situatio n you can choose to construct c onstruct a hypothesis% hypothesis % i-e- an e6pectation of the $ehaviour of the o$"ect% or a preliminary answer to the question that you are studying- Aou are usually free to decide if you want to use one or not- -g-% if you want to learn if 6 really equals two times y% you can set as your hypothesis 6 Q ;y During your pro"ect you then collect empirical data which allow you to test your hypothesis and see if it is true or not25
@ypotheses are always $ased on analytic models% models% and and they are often causal causal-- 1hey are always accurately stated and quite often stated as an arithmetic model% model% like for e6ample y Q f(6) where 6 Q the independent varia$le% y Q the dependent varia$le1he a$ove hypothesis includes only one varia$le of each type8 there are% however% usually more of them in real research pro"ectsIf you choose to use a hypothesis% you should plan the logic around it in the way that &unge (5EH% ) e6plains. 5- 'sk well well formulat formulated ed and and fruitfu fruitfull questi questionsons;- Devise $oth grounded grounded and testa$le testa$le hypotheses hypotheses to answer the questionsquestions- Derive Derive logic logical al consequ consequence encess of the the assump assumption tionss=- Design techniques techniques to test test the assumpti assumptions8 ons8 test the techniques techniques for relevance relevance and relia$ility- 6 6ec ecut utee the the test testssE- Inte Interp rpre rett the the resu result ltssH- val valuate ate the the truth claims of the assumptions and the fidelity of the techniques8 determine the domains in which the assumptions and the techniques holdIt is seldom * perhaps never * possi$le to reach an a$solute certitude when verifying a hypothesis- 1his is the case especially when the hypothesis is intended to hold true anywhere% i-e- also for the cases that are similar to those that have $een e6amined- 1herefore most modern researchers accept in practice the idea that when speaking of OtruthO of a hypothesis they actually mean verisimilitude or credibility- 1his distinction% nevertheless% has no decisive consequences in practice. you can use Ocredi$leO findings e6actly in the same way as OtrueO findings-
26
!i#tur+ane#? Usually the o$"ect of study is influenced $y various factors $esides the
independent varia$le mentioned in the hypothesis- 1hese distur$ances% sometimes called NnoiseN% prevent the researcher from clearly seeing the influence of the independent varia$leSuch factors whose systematic influence is known $eforehand can simply $e eliminated $y making a suita$le correction in the measurements- Unknown factors which cause detrimental random variation in the dependent varia$le are more difficult to handle- 1he researcher can $e prepared for distur$ances distur $ances and for the random ra ndom variation of the e6plained e6p lained o$"ect in alternative alterna tive ways. •
&y #tud8ing ,$re a#e# and calculating the average average of of the data
•
&y #hie.ding the research o$"ect in such a way that the distur$ing influences will $e eliminated- 1his usually requires an e6periment e6periment set set up in a la$oratory-
•
&y h$$#ing the -aria+.e# in the hypothesis in such a way that the influential varia$les are dealt with as e6plaining factors and not as random variation-
1he method of hypothesis was originally developed for de#ri9ti-e studies- 1his type of research aspires to get factual knowledge knowledge a$out the o$"ect of study% and the criterion which is used in accepting or re"ecting a descriptive hypothesis is factuality or truthfulness- 1he same criterion is applied to other phases of descriptive pro"ect as well% as is e6plained in 'ssessing Input Data % Data % 'ssessing !orrectness of 'nalysis 'nalysis and 'ssessing 1heoretical utputIn n$r,ati-e research a hypothesis is seldom used as such% $ut it is interesting to note that a normative pro"ect often includes a decisive focal point which determines the pro"ectOs success or failure in much the same way than the test of a hypothesis does in a descriptive pro"ect1his focal point is the final 9ratia. te#ting of the normative proposal- &ecause the target in normative study is not "ust to get information $ut primarily to improve the o$"ect of study or other similar o$"ects% the principal criterion when testing normative development proposals is not truth $ut instead practical value and functional operativeness- 1his criterion is discussed in valuating 2ormative ,roposals,roposals'nother difference to testing a descriptive hypothesis is that the process of development need not end in the test- If the first proposal must $e re"ected the normal practice is to prepare and test another proposal- 1his means that the process of development returns to that of normative research on the $asis of earlier model% model% discussed a$ove27
1ests of normative proposals are ha$itually carried out when developing a new product- 1heir product- 1heir procedures are discussed dis cussed in ,resenting the Draft and ,rototype and valuating a Design ,roposal- Similarly% ,roposal Similarly% in the development of an activity the pro"ect usually includes practical testing of the proposals% as descri$ed in 'ssessing 'ctivity Development-
?D RESEARCH P(AN Research Design +esearch design can $e thought of as the structure of research 0 it is the NglueN that holds all of the elements in a research pro"ect together' marketing research process cannot $e completed without an effective research design- ' research design precisely specifies particular means and methods through which required information can $e collected for structuring the research as well as seeking specific practical solutions to the pro$lem'ccording to the famous author &ernard S- ,hillips. K+esearch design is the $lueprint for the collection% measurement and analysis of data- It aids the scientist in allocation of his limited resources $y posing crucial choices. Is the $lueprint to include the e6periments% interviews% o$servations% analysis of records% stimulation or some com$ination of theseR 're the methods of data collection and research situation to $e highly structuredR Is an intensive study of a small sample more effective than a less intensive study of a large sampleR Should the analysis $e primarily qualitative or quantitativeR# 'ccording to Creen / 1ull in their $ook +esearch for Marketing Decisions78 K' research design is the specification of methods and procedures for acquiring the information needed to structure or to solve pro$lem- It is the overall operational pattern or framework of the pro"ect that stipulates what information is to $e collected from which sources and $y what procedures-# Fred 2- Lerlinger in KFoundations of &ehavioural +esearch” defines research design as. K1he plan% structure and strategy of investigation conceived so as to o$tain answers to research questions and to control variance-# 1herefore% it can $e summarised that research design is one step prior to data collectionIt is clear from the a$ove definitions that the $asic purpose of research design is the right investigation-
28
E9.$rat$r8 re#earh de#ign
6ploratory research design is conducted frequently in cases where the pro$lem is not clearly defined and also in situations where focus on real scope of work is not clear- @ere researcher takes initiative to study the pro$lem in detail and then generate hypothesis to $e tested- 1his is the initial research which is done $efore conclusive research is undertaken6ploratory research aids in determining the $est research design% selection of su$"ects and data collection method and sometimes it even summarises that the pro$lem or issue doesn7t e6ist6ploratory research is quite informal in nature- It relies on secondary research data like.
Re-ie# from literature already availa$le
;ua.itati-e a99r$ahe# like friendly discussion with consumers% employees% competitors%
or with management
F$r,a. di#u##i$n# like in depth interviews% pilot studies% case studies% face to face
interviews% focus groups and pro"ective methods 1hough the results of e6ploratory research are not usually conclusive $ut they help in taking decisions properly in a given situation- @owever% lot of indications are given in the result of qualitative research as to when% why% how% something happens $ut doesn7t make it clear how many or how oftenIn other words% this method is not a good representation of the sample data taken for research-
C$n.u#i-e re#earh de#ign
1his type of research means providing information which can $e useful in taking right kind of decisions andPor reaching at right conclusion!onclusive research requires more formal design than the e6ploratory research- 1his research is mostly quantitative in nature- It means the information can $e easily counted and summarised1he main o$"ective of this kind of research is to give relia$le information and a clear picture related to the population with the help of a valid research source or element- 1esting hypothesis is also conducted in this method 2ormally% this method relies on $oth primary data as well as secondary s econdary data- ,rimary data denotes the data collected for the current study and the secondary data denotes the data used from e6isting sources- &oth the sources help in analysing a different kind of pro$lem every time than the original one29
1here are mainly two types of conclusive research which you are going to study in the ne6t sections- 1hese are.
Descriptive or statistical research
!ausal research
!e#ri9ti-e Re#earh !e#ign
!onclusive research design is su$divided into descriptive research and causal research- Aou will study descriptive research design in this sectionDescriptive research is a commonly used type of conclusive researchDescriptive studies are formal% rigid% well*structured and focused in nature1his type of research involves the description of relationships $etween the num$er of varia$le factors and working out conclusionsDescriptive study starts with specific research questions where su$stantial information a$out the research pro$lem is known $y conducting the pilot study- 1hus% descriptive research means a preconceived% formal and structured design to seek solution to a particular pro$lemDescriptive +esearch is concerned with the e6*post facto analysis of related and inter*related varia$les in real life situations- 1his analysis can $e done on the $asis of field study and surveys1he cross*sectional study is the most popular and widely used Descriptive +esearch technique- It involves the collection of information from any given sample of population elements only once- It is useful $ecause $eca use it provides a quick quic k snapshot of whatOs going on with the varia$les of interest for our research pro$lemDescriptive research studies require proper data analysis and inferences and the checklist of effective data analysis is as follows.
Mention the question num$er correctly-
Mention headings% su$headings and other names correctly and sequentially-
!heck information% the content of questions- 1he content should $e a$le to generate
information needed to draw meaningful conclusions
!onsider the reasons for including questions-
!onduct primary analysis and identify information value-
!onduct further analysis if required-
For e6ample% most significant e6ample of this type of research is !ensus which is used to count the num$er of population in the countryFirms normally use opinion poll method- 1his is also a part of this research design30
Descriptive +esearch can $e further divided into !ross*sectional Design7 and Bongitudinal Design7 which you are going to study in ne6t su$sections-
D'1' D'1' SU+!S SU+ !S 1here are two types of dataSource of primary data for the present study is collected through questionnaire and answered $y consumers of 2ike shoesshoes - 1he secondary data is collected from "ournals% $ooks and an d through Internet search-
,+IM'+A D'1' 1he data that is collected first hand $y someone specifically for the purpose of facilitating the study is known as primary data- So in this research the data is collected from respondents through questionnaire-
S!2D'+A S! 2D'+A D'1' D'1' For the company information I had used secondary data like $rochures% we$ site of the company etc1he Method used $y me is Survey Method as the research done is Descriptive +esearch-
+S'+!@ I2S1+UM21S Selected instrument for Data !ollection for Survey is JuestionnaireJUS1I22'I+ DSIC2 F+MUB'1I2 Under this method% list of questions pertaining to the survey are prepared for marketing staff of consumers of 2ike shoesJuestionnaire has structured type questions as well as unstructured type questions- Structured o$"ective type questions are prepared for the respondents with fi6ed response categories- Some of the questions are of multiple*choice type- 1he questions have more than one alternativeJuestionnaire. * ' questionnaire consists of a set of questions presented to respondent for their answers- It can $e !losed nded or pen nded
pen nded. * 'llows respondents to answer in their own words / are difficult to Interpret and 1a$ulate1a$ulate31
!lose nded. * ,re*specify all the possi$le answers / are easy to Interpret and 1a$ulate-
1A,S F JUS1I2 I2!BUDD. DI!@1MUS JUS1I2S :hich has only two answers KAes# or K2o#R
MUB1I,B !@I! JUS1I2S :here respondent is offered more than two choices-
IM,+1'2! IM,+1'2! S!'B S!' B ' scale that rates the importance of some attri$ute-
+'1I2C +'1I2C S!'B ' scale that rates some attri$ute from Khighly satisfied # to Khighly unsatisfied K and Kvery inefficient# to Kvery efficient#
Cr$##&#eti$na. de#ign
1here are two types of !ross*sectional design
Single cross*sectional design. In this% only one sample of respondents and their information
is utilised and that is used only once in a study
Multiple cross*sectional designs. In this% information is captured with the help of two or
more samples of respondents- ach sample7s information is used only for once- 1hough information is collected at different times from different samples of the study-
Aou can analyse the cross*sectional design in a negative and positive way1hus% following are their merits and demerits. Ad-antage# $4 r$##&#eti$na. de#ign
!ross*sectional method is user friendly% easy to understand and simple to use-
Minimum resources are required to work out on this study
1his design is the $est design in determining prevalence system (prevalence system
involves the num$er of cases or occurrences that e6ist at a specific period of time in a defined population)32
!i#ad-antage# $4 r$##&#eti$na. de#ign
1his study is una$le to find out the cause and effect relationship among various factors-
1his study does not provide clear set of e6planations for their findings-
Aou can understand this research method with the help of following e6ample. ' study $etween height and age of people which shows negative relationship- It gives following conclusive answers.
Aoung people are comparatively taller-
's people $ecome old% they lose their height
1all people have more risk to their life in comparison to short people1his e6ample shows that cross*sectional study does not give a full e6planation of the case1his method is una$le to support their findings as well?D?1 ($ngitudina. de#ign
1his study is concerned with panel research where information is generated $y the continuous analysis of varia$les at regular intervals- 1hus% in panel research a sample of respondents are interviewed on a regular $asis to gain informationIn this type of research design% sample of population elements would $e fi6ed and measured repeatedly- 1he varia$les would remain the same for this research study-
1his study is useful in conducting lot of activities like trend analysis% tracking changes in $ehaviours over time ti me like $rand switching% levels of awareness% turnover etc) etc ) and checking the long*term effects of marketing activities like market share% pricing effects etcAd-antage# $4 .$ngitudina. de#ign
1he primary advantage of longitudinal designs is that they are very economical-
Since the sample respondents are fi6ed% there is no error of su$"ect variations-
1his research design gives more efficient estimators with same num$er and pattern of
o$servations in comparison to cross sectional designs
It helps you in making differentiation $etween change over time in aggregate data and
changes within individuals
Bongitudinal research design ena$les factors of interest for their continuity and sta$ility
over time and also identifies the sequential developments!i#ad-antage# !i#ad-antage# $4 .$ngitudina. de#ign
1o select appropriate longitudinal design is a very crucial task-
'nother challenge of longitudinal design is related to their development effects% duration or
measurement time33
1he o$servations in this study are not independent-
Methods of analysis are also not as well developed% specifically for more sophisticated
models
1here are pro$lems in using various software in this study-
ne of the ma"or challenges of longitudinal study is that this method involves comple6
calculationsCau#a. Re#earh !e#ign
Descriptive research is one type of conclusive research% other type of conclusive research is causal research design!ausal +esearch design is the study of cause and effect relationships $etween two or more varia$les- !ausal research depends on interviews and in the conduct of e6periments- !ausal research is $est suited when the aim of research is to recognise varia$les that cause the phenomenon $eing predicted and understand unders tand why they cause what is $eing $ eing predicted:illiam ?- Coode / ,aul L- @att in Methods in Social +esearch7 defines cause and effect relationship as. " when when two or more cases of given phenomenon have one and only one condition in common% that condition may $e regarded as the cause and effect of that phenomenon-N 1he set of causes generated to predict their effects% can $e deterministic or pro$a$ilistic in nature- 1he deterministic cause is the one which is essential and adequate for stimulating the occurrence of another event- :hile the pro$a$ilistic cause is the one that is essential% $ut is not the only one responsi$le for the stimulation of the occurrence of another event1he o$"ective is to determine which varia$le might $e causing certain $ehaviour i-e-% whether there is a cause and effect relationship $etween varia$les% causal research must $e undertaken1his type of research is very comple6 and the researcher can never $e completely certain that there are not other factors influencing the causal relationship% especially when dealing with peopleOs attitudes and motivations- 1here are often much deeper d eeper psychological psychologica l considerations that even the respondent may not $e aware of1o identify causal mechanisms% the most universal plan of action taken $y researchers is what we call the e6periment design7 where causal analysis is applied to a standard randomised e6periment- 6perimental research provides the most powerful design for testing causal hypothesesE9eri,enta. !e#ign#% 1his kind of study is a process which plans natural order events to
meet the specific o$"ectives- In this method% certain factors are controlled to see the effect on 34
certain other factors- @ere researcher o$serve the study carefully and do the e6periment in a correct order&ecause this study emphasis on the importance of the concept and ensure the right type of information% result will totally depend upon the manipulation done $y the researcher- @e makes new changes and interventions in the concept1he following process will help you in determining the concept of e6perimental design.
trace out the pro$lem and define them
define the population
focus on the sampling need
define the e6perimental design
1he e6perimental design method includes various types.
Eui-a.ent ti,e #erie# de#ign
@ere treatment cannot $e given to all the respondents simultaneously1raining is given to all the employees rotationally so that different types of training can $e provided to different groups gro ups of people
C.a##i e9eri,enta. de#ign
Su$"ects are assigned randomly in this method- 1reatment groups are conforma$le to '29' designs in two ways. •
'eteen #u+:et de#ign% 1here are different su$"ects for each varia$le of independent
varia$les- -g- to study the impact of political advertising% different types of media e6posure are used• @ithin #u+:et#L re9eated ,ea#ure# de#ign#% 1here are same su$"ects used for each level of the independent varia$le% as in $eforeafter studies or panel studies
@aiting .i#t de#ign
1his method is used when demand e6ceeds supply- 'nd due to limited supply% legitimate treatment is given to only some of the citi3ens and not to all the citi3ens as it is impossi$le due to shortage
Tie&+rea7ing de#ign @ere the main focus of the study is depending upon merit $asis- 1his situation occurs usually
in academic field where normally tied scores are received on merit $ased e6ams- 1hen these scores are randomly assigned to a specific treatment and a control groupS9atia. #e9arati$n de#ign
35
1reatment groups are separated and have no e6periment*relevant intercommunication- For e6ample% participative management concept is tried with a treatment group of *new% randomly assigned employees in one location $ut not in another locationIndi44erene ur-e de#ign# Some people will $e indifferent towards receiving or not receiving the treatment% when the
attractiveness of the treatment can $e ad"usted at a point- 1hus treatment is assigned to a num$er of people randomlyNe $rgani#ati$n de#ign :hen a new organisation is esta$lished% like one providing "o$ training to the new entrants%
opportunities may well arise which permit the random assignment of clients to a controlMandate hange de#ign :hen the solution is unknown $ut change is required% treatment of random assignment is done
as in random assignment of students to classes with alternative $ooks;ua#i&e9eri,enta. ;ua#i&e9eri,enta. de#ign ' quasi*e6perimental study is a type of evaluation which aims to determine whether program
or intervention has the intended effect on a study7s participants- 1his is an e6periment in which in which one has little or no control over the allocation of the treatments or other factors $eing studied1his study estimates the causal impact of an intervention on the targeted population- 1he following e6ample would help you in getting this point more ela$orativeFor e6ample% let us suppose you have completed your class 5;th- 2ow you are going to take admission in graduation- For this you already filled the admission forms of different colleges 2ow various colleges assign ass ign the cut off list on merit $asis$asis - 1hen you can see the list for your enrolment in the college- 1his cut off list is a very good e6ample of this quasi e6perimental research design study-
?0 SAMP(E P(AN P$9u.ati$n
- P$9u.ati$n% ,opulation refers to any group of people or o$"ects that form the su$"ect of study in a particular survey and are similar in one or more ways- For e6ample% the num$er of full*time M&' students in a $usiness school could form one population- If there are ; such students% the population si3e would $e ;- :e may $e interested in understanding their perceptions a$out a$ou t $usiness educationeducation - If% in an organi3ation there are 5% 5 % engineers% out of which are mechanical engineers and we are interested in e6amining the proportion of mechanical engineers who intend to leave the organi3ation within si6 months% all the mechanical engineers would form the population of interest- If the interest is in studying how 36
the patients in a hospital are looked after% then all the patients of the hospital would fall under the category of populationE.e,ent% 'n element comprises a single mem$er of the population- ut of the
mechanical engineers mentioned a$ove% each mechanical engineer would form an element of the populationUni-er#e $r 9$9u.ati$n
Statistical survey or enquiries deal with studying various characteristics of unit $elonging to a group- 1he group consisting of all the units is called universe or population- 1he figure 5-= depicts the population-
Fig? /?D% I..u#trati$n $4 P$9u.ati$n Ea,9.e /
In the statistical survey aimed at determining average per capita income of the people in the city% all earning individuals in the city form the population T89e# $4 9$9u.ati$n
1he figure 5- depicts the types of population along with the e6planation
37
Fig? /?0% T89e# T89e# $4 P$9u.ati$n P$9u.ati$ n N$te% 'lthough many populations appear to $e e6ceedingly large% no truly infinite population
of physical o$"ects actually e6ists- Civen limited resources and time it is practically not possi$le to count the num$er of grains of sand san d on the $each- Such populations popula tions are termed as infinite population for our study-
Sa,9.ing 4ra,e 1he white pages% pages% a collection of telephone directories in directories in the United States% was commonly used as a sampling frame for opinion pollsIn statistics statistics%% a sampling frame is the source material or device from which a sample is drawnIt is a list of all those within a population a population who who can $e sampled% and may include individuals% households or institutionsImportance of the sampling frame is stressed $y ?essen and Salant and DillmanIn many practical situations the frame is a matter of choice to the survey planner% and sometimes a critical one- T--- Some very worthwhile investigations are not undertaken at all $ecause of the lack of an a n apparent frame8 others% other s% $ecause of faulty frames% fra mes% have ended in a disaster or in cloud of dou$t — aymond !ames !essen
O+taining and $rganiing a #a,9.ing 4ra,e 38
In the most straightforward cases% such as when dealing with a $atch of material from a production run% or using us ing a census census%% it is possi$le to identify and measure every single item in the population and to include any one of them in our sample8 this is known as direct element sampling - @owever% in many other cases this is not possi$le8 either $ecause it is cost*
prohi$itive (reaching (reach ing every citi3en of a country) co untry) or impossi$le (reaching ( reaching all humans alive)alive) @aving esta$lished the frame% there are a num$er of ways for organi3ing it to improve efficiency and effectiveness- ItOs at this stage that the researcher should decide whether the sample is in fact to $e the whole population and would therefore $e a census census-1his list should also facilitate access to the selected sampling units units-- ' frame may also als o provide additional Oau6iliary informationO a$out its elements8 when this information is related to varia$les or groups of interest% it may $e used to improve survey design- :hile not necessary for simple sampling% a sampling frame used for more advanced sample techniques% such as stratified sampling% sampling% may contain additional information (such as demographic information)information)For instance% an electoral register might include name and se68 this information can $e used to ensure that a sample taken from that frame covers all demographic categories of interest(Sometimes the au6iliary information is less e6plicit8 for instance% a telephone num$er may provide some information a$out location-)
Sa,9.ing 4ra,e ua.itie# 'n ideal sampling frame will have the following qualities. •
all units have a logical% numerical identifier
•
all units can $e found 0 their contact information% map location or other relevant information is present
•
the frame is organi3ed in a logical% systematic fashion
•
the frame has additional information a$out the units that allow the use of more advanced sampling frames
•
every element of the population of interest is present in the frame
•
every element of the population is present only once in the frame
•
no elements from outside the population of interest are present in the frame 39
•
the data is Oup*to*date-
T89e# $4 #a,9.ing 4ra,e# 1he most straightforward type of frame is a list of elements of the population (prefera$ly the entire population) with appropriate contact information- For e6ample% in anopinion an opinion poll% poll% possi$le sampling frames fra mes include an electoral register or or a telephone directorydirectory- ther sampling frames can include employment records% school class lists% patient files in a hospital% organi3ations listed in a thematic data$ase% and so on- n a more practical levels% sampling frames have the form of computer filesfiles 2ot all frames e6plicitly list lis t population elements8 some list only OclustersOOclustersO - For e6ample% a street map can map can $e used as a frame for a door*to*door survey8 although it doesnOt show individual houses% we can select streets from the map and then select houses on those streets1his offers some advantages. such a frame would include people who have recently moved and are not yet on the list frames discussed a$ove% and it may $e easier to use $ecause it doesnOt require storing data for every unit in the population% only for a smaller num$er of clusters-
Sa,9.ing 4ra,e# 9r$+.e,# 1he sampling frame must $e representative of the population and this is a question outside the scope of statistical theory demanding the "udgment of e6perts in the particular su$"ect matter $eing studied- 'll the a$ove frames omit some people who will vote at the ne6t election and contain some people who will not8 some frames will contain multiple records for the same person- ,eople not in the frame have no prospect of $eing sampled&ecause a cluster*$ased frame contains less information a$out the population% it may place constraints on the sample design% possi$ly requiring the use of less efficient sampling methods andPor making it harder to interpret the resulting dataStatistical theory tells us a$out the uncertainties in e6trapolating from a sample to the frameIt should $e e6pected that sample frames% will always contain some mistakes- In some cases% this may lead to sampling $ias$ias- Such $ias should $e minimi3ed% and identified% although
40
avoiding it completely in a real world is nearly impossi$le- ne should also not assume that sources which claim to $e un$iased and representative are suchIn defining the frame% practical% economic% ethical% and technical issues need to $e addressed1he need to o$tain timely results may prevent e6tending the frame far into the future- 1he difficulties can $e e6treme when the population and frame are dis"oint dis"oint-- 1his is a particular pro$lem in forecasting forecasting where where inferences a$out the future are made from historical data data-- In fact% in 5H% when ?aco$ &ernoulli proposed &ernoulli proposed to Cottfried Bei$ni3 the Bei$ni3 the possi$ility of using historical mortality data to predict the pro$a$ility the pro$a$ility of of early death of a living man% Cottfried Bei$ni3 recogni3ed Bei$ni3 recogni3ed the pro$lem in replying. 2ature has esta$lished patterns originating in the return of events $ut only for the most part 2ew illnesses flood the human hu man race% so that no matter how many e6periments e6 periments you have done do ne on corpses% you have not there$y imposed a limit on the nature of events so that in the future they could not vary — ottfried #eibniz
Beslie Lish posited Lish posited four $asic pro$lems of sampling frames. 5- Missing elements. elements. Some Some mem$ers mem$ers of the the population population are not included included in the the frameframe;- Foreign elements. elements. 1he 1he non*mem$ers non*mem$ers of the population population are are included included in the the frameframe- Duplicate Duplicate entries. entries. ' mem$er mem$er of the population population is surveyed surveyed more more than onceonce=- Croups or clusters. clusters. 1he frame lists clusters instead of individualsindividuals,ro$lems like those listed can $e identified $y the use of pre*survey tests and pilot and pilot studiesstudies-
SAMPLING UNIT A basic concept in sampling sampling theory is the sampling unit , which is the minimum unit of observation for information on the operative variables. The sampling unit must be clearly defined for constructing the sampling frame. By convention in statistics, a capital “N” is used to refer to the number of sampling units making up the universe, and a lowercase “n” for the number of sampling units in the sample itself. The sampling unit best suited for the respective sectors is shown in Table Table .!. "ther sampling units can be defined as suggested by the ob#ective of the survey. Table Table 3.1: Sampling uni !"r hemaic gr"up an# sec"r "r branch un#er e$aminai"n
41
Gr"up
Sec"r%branch
Sampling uni
$emand
%esidential
'ome
& urban & rural (ndustrial
)stablishment
*ommercial (nstitutional +upply
rovision
$irect
lot
(ndirect
)stablishment
roducers
(ndividual producers,
Transport operators
companies
*ommercial suppliers
"nce the universe and sampling unit have been defined, and once the sampling frame is ready, the sample design comprises two ma#or stages- definition of type of sampling and determination of sample sie.
SAMPL& SI'& +ample sie must be determined independently for each universe, according to three factorsthe variability of the most important numerical variable, the level of confidence re/uired and the acceptable level of error. This is summaried by the following formula-0 n" ( )s* . * , +,% e* 1!2 in in terms terms of variance and absolute error or n" ( )c+* . * , +,% e* in terms of variation coefficient and relative error wheren" ( sie of sample s* 3 variance of the sample +tudent4s 5t4 test with significance level * , + 3 critical value of +tudent4s
42
and + degrees of freedom
e ( acceptable error c+ ( variation coefficient 3 standard deviation of the sample 6 sample mean + 3 degrees of freedom3 n 7 ! 8ariance 1s 1s*2 and variation coefficient 18*2 indicate the degree of homogeneity of the variable under consideration in the sample. s ample. These are calculated & manually by calculator or with )9cel 7 with the data from a preliminary sample or earlier survey. survey. Acceptable error 1e 1e2 refers to the allowable difference between sample mean and mean of the universe. (t is set in accordance with previous knowledge of the phenomenon under study, and it is advisable to keep it within !:&;:< & which can also be e9pressed in absolute values with the units of measurement of the variable in /uestion. The critical value of t is is obtained from tables in statistics books or from )9cel, selecting first the level level of signi signific ficance ance 1 2 or its its comple complemen ment, t, the leve levell of confid confidenc ence e 1!&
2. A level level of confi confiden dence ce
of :.=>, which is e/uivalent to a 3 :.:> is enough for surveys of this kind. (n addition, in order to define the degrees of freedom 1+ 1+ 3 n&!2, a first assessment of the number 1n2 of cases in the sample is needed. These two values are the entry data for the tables. +ubse/uently, the sample sie is specified by means of an iterative process, where the value of 5n4 is obtained using ?ormula 1!2 to determine the value of 5t4. This formula shows that the number of elements making up the sample is directly proportional to the variance and value of t;, and inversely proportional to the s/uare of the error. The sample sie will be large when- 1a2 the element under study is highly variable 1high variance or variation coefficient2@ 1b2 the level of confidence sought is high@ and6or 1c2 the acceptable error is low. *onversely, the sample sie will be small if the phenomenon shows little variance, a low level of confidence is set, and a high level of error is accepted. ?rom this it is clear that the sie of a sample does not depend on the sie of the universe. Thus, starting with an e/ual level of confidence and error acceptance in a tropical rainforest covering the same surface area as a temperate pine forest, the sample sie will be larger for the rainforest because of its greater heterogeneity in the wood stock variable in relation to the pine forest. +o far no consideration has been given to the sie of the universe in determining sample sie. Nevertheless, for a small universe 1fewer than !;: sampling units2, it is necessary to correct the value of n" obtained from ?ormula 1!2, by using ?ormula 1;2 n ( n" %)1 - n" %N, 1;2
43
wheren" 3 sample sie obtained from ?ormula 1!2 N 3 sie of universe n 3 definitive sie of sample Anne9 ((( gives the calculated sample sie for the estimation of fuelwood consumption in a residential sector for varying universe sie and error margin and corrected for finite population. (t applies for the variable “specific fuelwood consumption”, where, due to the abundance of case studies, the variation coefficient is known. Variables to be used in calculating sample size
To define sample sie of any sector or branch of woodfuel demand, it is best to use the unit consumption variable. (n the industrial, commercial and institutional sectors it is not always possible to find data on unit consumption, but one can use the volume of production per unit time, which is closely correlated with unit consumption. (n the case of direct supply 1from forest, plantation, etc.2 the important variables may be stock or productivity, but the first is recommended as there is more secondary information and it is easier to measure in a preliminary sample. (f there are no data on stock, basal area data 1C2 may be used. (n sector sectors s or branch branches es of indire indirect ct supply supply 1sawmi 1sawmills lls,, carpen carpentry try worksh workshops ops,, etc.2, etc.2, volum volume e of production per unit time must be used. ?or provision sectors- in the case of producers, it is best to use volume of woodfuel production@ traders, volume of sales@ and transport operators, transport capacity, all e9pressed per unit time. The final decision on the sie of the sample will depend on the agreed trade&off between desired accuracy and availability of monetary, human and time resources for conducting the field survey. (t is recommended that sectors or branches having greater importance in woodfuel demand, supply and provision be given priority in the allocation of resources for field surveys so that estimations can be more accurate. (n situations where it is not possible to realie the sample sie determined by statistical calculation, it is essential to survey at least ten sample units per sector, branch or stratum, and to indicate the error in estimation, finding the e value of ?ormula 1!2. D
(n statistics “universe” is also referred to as “population”.
0
?ormula used to determine the sample sie needed to estimate the population mean@ for 44
hypothesis testing for differences between means and variances other formulas are available. Eseful statistics reference books include Far !===, *ochran !=00, and +teel and Torrie Torrie !=. Also termed “correction for finite population”.
SAMP(E !ESIGN
1@ &'SIS F S'M,BI2C. * !onsumers of 2ike shoes are chosen randomly% so that un$iased% representative sample may $e o$tained1he process of selecting samples from the population is referred to as sampling design- 1here are two types of sampling designsVpro$a$ility sampling design and non*pro$a$ility sampling design- ,ro$a$ility sampling designs are used in a conclusive research whereas non* pro$a$ility sampling designs are appropriate appropr iate for an e6ploratory e6plorator y researchPr$e## Pr$e## $4 Sa,9.ing !e#ign
&efore you study the process of sampling design you must $e aware of the stages of the sampling1here are $asically two stages of sampling.
Figure /?3% Sa,9.ing Stage#
Sing.e&#tage #a,9.ing
In this sampling% targeted population elements are collected into a sampling frame- 1o select a sample of element% one of the techniques is used among various techniques- 1hese techniques are random sampling% stratified sampling and systematic sampling
Mu.ti&#tage #a,9.ing
@ere sampling is done sequentially like country level is taken as first stage8 census track level comes at second stage8 $lock level at third stage8 household level at fourth stage and within household level at final stage- In multi stage sampling% hierarchical structure of the population is taken into consideration45
Further sampling design can $e e6plained with the help of five steps process which is given $elow in figure 5-H-
Figure /?2% Pr$e## $4 Sa,9.ing !e#ign
Bet7s discuss each one in detail
!e4ine the targeted 9$9u.ati$n% ,opulation is defined as (i) elements% (ii) sampling units%
(iii) e6tent and (iv) time Ea,9.e% If a company wants to monitor the sales of its recently launched product% the
population will $e. (i) lement 0 companyOs product (ii) Sampling unit 0 retail outlet% supermarket (iii) 6tent 0 ?aipur (iv) 1ime 0 Septem$er 5th to ct lth ;E
Identi48 the 4ra,e $4 #a,9.ing% Sampling frame could $e yellow pages% telephone
directory% various colonies in a municipal area list mentioning the details of all coloniesEa,9.e% If you want to know a$out a car owner in ?aipur city% then the transport office
(+1) can provide the name% address and type of vehicle possessed
S9ei48 #a,9.ing unit and tehniue#% tehniue#% It is defined as the element a$out which
information is required and then selecting pro$a$ility or non*pro$a$ility methods Ea,9.e% retailers in a locality% hus$and or wife or children in a family
!eter,ine the #a,9.e #ie% 1his means deciding how many elements of the target
population are to $e chosen- 1he sample si3e depends on the type of the study- 1he sample si3e is small in e6ploratory study and this is large in si3e in descriptive study
Se.et the #a,9.e and eeute the 9r$e##% 1his is the final step in the sampling process-
Ea,9.e% 1he Nati$na. Hea.th and Nutriti$n Ea,inati$n Sur-e8
(2@'2S) sampling procedure consists of = stages% shown in figure 5-G and descri$ed $elow-
46
Figure/?% Sa,9.e $4 Pe$9.e Se.eted in F$ur Stage#
In the first stage% a sample of countries is selected- 1hese are called ,rimary Sampling Units (,SU)- In the second stage% these units are divided into segments- In the third stage% a sample of households from each segment is selected- In the final stage% individuals from each selected household are chosen as the final sampleD'1' D'1' ,+!SSI2C M1@DBCA M1@DBC A (i) nce the primary data have $een collected% they are (I) edited 0 inspected% corrected and modified(ii) 1a$ulation 0 $ring similar data together and totaling them in meaningful categoriesJuestionnaires are edited $oth in the field and later in home- Field editing took place "ust often the interview- Cenerally editing is required for open type of questions- &rief notes or sym$ols are frequently used during the interview to initially record the interviewer7s response since it was not desira$le to interrupt the flow with lengthy note taking- 1hen immediately after the interview% $rief notes are respondent- 1he responses are thoroughly checked in home for incorrect% inconsequential or contradictions categories are developed only often the replies has $een reviewed- 1his review provided a feel for the pattern of o f answers and thus determine what wh at categories $est represent the answers-
?3 RESEARCH PROCE!URE
Chi&Suare Chi&S uare Te#t Te#t !hi*square is a statistical test commonly used to compare o$served data with data we would e6pect to o$tain according to a specific hypothesis- For e6ample% if% according to MendelOs laws% you e6pected 5 of ; offspring from a cross to $e male and the actual o$served num$er was G males% then you might want to know a$out the Ngoodness to fitN $etween the o$served and e6pected- :ere the deviations (differences $etween o$served and e6pected) the result of chance% or were they due to other factors- @ow much deviation can occur $efore you% the investigator% must conclude that 47
something other than chance is at work% causing the o$served to differ from the e6pected- 1he chi* square test is always testing what scientists call the nu.. h89$the#i# which states that there is no significant difference $etween the e6pected and o$served result1he formula for calculating chi*square (
;
) is.
;
Q $o%e&; 'e
1hat is% chi*square is the sum of the squared difference $etween o$served (o) and the e6pected (e) data (or the deviation% d )% )% divided $y the e6pected data in all possi$le categoriesFor e6ample% suppose that a cross $etween two pea plants yields a population of GG plants% E with green seeds and ;=5 with yellow seeds- Aou are asked to propose the genotypes of the parentsAour hypothesis is that the allele for green is dominant to the allele for yellow and that the parent plants were $oth hetero3ygous hetero 3ygous for this trait- If your hypothesis is true% tru e% then the predicted ratio of offspring from this cross would $e .5 ($ased on MendelOs laws) as predicted from the results of the ,unnett square (Figure &- )Figure '?D & Punnett Suare? ,redicted offspring from cross $etween green and yellow*seeded
plants- Creen (C) is dominant (P= green8 5P= yellow)-
Figure 5-
1o calculate
;
% first determine the num$er e(pected in each category- If the ratio is .5 and the
total num$er of o$served individuals is GG% then the e(pected numerical values should $e EE green and ;; yellow-
Chi-square requires that you use numerical values, not percentages or ratios.
48
1hen calculate ;
;
using this formula% as shown in 1a$le &-5- 2ote that we get a value of ;-EEG for
- &ut what does this num$er meanR @ereOs how to interpret the
;
value.
5- Determine degrees of freedom (df)- Degrees of freedom can $e calculated as the num$er of categories in the pro$lem minus 5- In our e6ample% there are two categories (green and yellow)8 therefore% there is I degree of freedom;- Determine a relative standard to serve as the $asis for accepting or re"ecting the hypothesis- 1he relative standard commonly used in $iological research is p ) -- 1he p value is the probab probability ility that the deviation of the o$served from that e6pected is due to chance alone (no other forces acting)- In this case% using p )-% you would e6pect any deviation to $e due to chance alone W of the time or less- +efer to a chi*square distri$ution ta$le (1a$le &-;)- Using the appropriate degrees of Ofreedom% locate the value closest to your calculated chi*square in the ta$le- Determine the closest p p (pro$a$ility) value associated with your chi*square and degrees of freedom- In this case ( ;Q;-EEG)% the p value is a$out -5% which means that there is a 5W pro$a$ility that any deviation from e6pected results is due to chance only- &ased on our standard p ) -% this is within the range of accepta$le deviation- In terms of your hypothesis for this e6ample% the o$served chi*squareis not significantly different from e6pected- 1he o$served num$ers are consistent with those e6pected under MendelOs lawStep*$y*Step ,rocedure for 1esting Aour @ypothesis and !alculating !hi*Square 5- State the hypothesis $eing tested and the predicted results- Cather the data $y conducting the proper e6periment (or% (o r% if working genetics pro$lems% use the data provided in the pro$lem)pro$l em);- Determine the e6pected num$ers for each o$servational class- +emem$er to use num$ers% not percentages-
Chi-square should not be calculated if the expected value in any category is less than 5.
49
- !alculate
;
using the formula- !omplete all calculations to three significant digits- +ound off
your answer to two significant digits=- Use the chi*square distri$ution ta$le to determine significance of the valuea-
Determine de degrees of of fr freedom an and lo locate th the va value in in th the ap appropriate co column-
$-
Bocate the value closest closes t to your calculated
c-
Move up the column to determine the p value-
*
on that degrees of freedom df row row-
- State your conclusion in terms of your hypothesisa-
If the p value for the calculated
;
is p ) -% accept your hypothesis- O1he deviation
is small enough that chance alone accounts for it- ' p value of -E% for e6ample% means that there is a EW pro$a$ility that any deviation from e6pected is due to chance only- 1his is within the range of accepta$le deviation $-
If the p value for the calculated calcu lated
;
is p + -% re"ect your hypothesis% and conclude
that some factor other than chance is operating for the deviation to $e so great- For e6ample% a p value of -5 means that there is only a 5W chance that this deviation is due to chance alone1herefore% other factors must $e involved1he chi*square test will $e used to test for the Ngoodness to fitN $etween o$served and e6pected data from several la$oratory investigations in this la$ manualTa+.e '?1
!alculating !hi*Square Green
Ye..$
$served (o)
E
; =5
6pected (e)
EE
; ;
Deviation (o % e&
*;5
;5
Deviation; ( (d d ;)
== 5
= =5
d * 'e
-EEG
;
-
-
;
Q d;Pe Q ;-EEG
50
Ta+.e '?
!hi*Square Distri$ution Degrees of Freedom
p) Pr$+a+i.it8 ( p
$df&
-
-
-G
-H
-
-
-;
-5
-
-5
-5
5
-= -;
-E
-5
-=E
5-H
5-E=
;-H5
-G=
E-E=
5-G 5
;
-5
-;5
-=
-H5
5-
;-=5
-;;
=-E
-
-;5
5-G;
-
-G
5-5
5-=;
;-H
-EE
=-E=
E -; E-
H-G;
55-=
5E-;H
=
-H5
5-E
5-E
;-;
-E
=-GG
-
H -HG H-
-=
5-;G
5G-=H
5-5=
5-E5
;-=
-
=-
E-E
H-;
-;= -
55-H
5-
;-;
E
5-E
;-;
-H
-G
-
H-;
G-E
5 -E= 5;- 5
5E-G5
;;-=E
H
;-5H
;-G
-G;
=-EH
E-
G-G
-G
5 ;-; 5=-H 5;
5G-=G
;=-;
G
;-H
-=
=-
-
H-=
-;
55- 5-E 5-5
;-
;E-5;
-;
=-5H
-G
E-
G-=
5-EE 5;-;= 5=-EG 5E-;
;5-EH
;H-GG
5
-=
=-GE
E-5G
H-;H
-= -
55-HG 5-== 5- 5G-5
;-;5
;-
2onsignificant
Significant
./0 Disribui"n T-test
' t &te#t test in which the test statistic follows statistic follows a StudentOs t * &te#t is any statistical hypothesis test in distri$ution under distri$ution under the null hypothesishypothesis- It can $e used to determine if two sets of data are significantly different significantly different from each other' t *test *test is most commonly applied when the test statistic would follow a normal distri$ution if the value of a scaling term in the test statistic were known- :hen the scaling term is unknown and is replaced $y an estimate $ased on the data data%% the test statistics (under certain conditions) follow a StudentOs t distri$ution distri$ution51
The5t4 distribution distribution was developed by G.+.Cossett in the pet name 5student4. Therefore, it is known as student4s 4t4 distribution. The properties of 5t4 distribution are-
Most t *test *test statistics have the form t Q Q P s and s are functions of the data- 1ypically% s% where and is designed to $e sensitive to the alternative hypothesis (i-e-% its magnitude tends to $e is larger when the alternative hypothesis is true)% whereas s is a scaling parameter that parameter that allows the distri$ution of t to to $e determined-
's an e6ample% in the one*sample t *test *test
% where
is
the sample mean from from a sample sample - 5 - si3e n% s is the ratio of sample standard %- ;%X% - - n% of si3e deviation over population standard deviation% Y is the population the population standard deviation deviation of of the data% and Z is the population the population meanmean1he assumptions underlying a t *test *test are that •
•
follows a normal distri$ution with mean Z and variance Y; - follows distri$ution with p degrees of freedom under freedom under the null hypothesis% where s; follows a [ ; distri$ution with p is a positive constant
•
and s are independent independent- and
In a specific type of t *test% *test% these conditions are consequences of the population the population $eing $eing studied% and of the way in which the data are sampled sampled-- For e6ample% in the t *test *test comparing the means of two independent samples% the following assumptions should $e met. •
ach of the two populations $eing compared should follow a normal distri$utiondistri$ution- 1his can $e tested using a normality test% test% such as the Shapiro0:ilk or or Lolmogorov0 Smirnov test% Smirnov test% or it can $e assessed graphically using a normal quantile plotplot-
•
If using StudentOs original definition of the t *test% *test% the two populations $eing compared should have the same variance (testa$le using *test% BeveneOs test% test% &artlettOs test% test% or the &rown0Forsythe test8 test8 or assessa$le graphically using a J0J plot)plot)- If the sample si3es in the two groups $eing compared are equal% StudentOs original t *test *test is highly
52
ro$ust to the presence of unequal variances-T5 :elchOs t *test is *test is insensitive to equality of the variances regardless of whether the sample si3es are similar•
1he data used to carry out the test should $e sampled independently from the two populations $eing compared- 1his is in general not testa$le tes ta$le from the data% $ut if the data are known to $e dependently sampled (i-e-% if they were sampled in clusters)% then the classical t *tests *tests discussed here may give misleading results-
Most two*sample t*tests are ro$ust to all $ut large deviations from the assumptions-
./.1 Uses "! 0 es The 5t4 test is used
To test a specified value
To test the differences between values 1independent sample2
As a paired 5t47test 5t47test 1dependent 1dependent sample2
To construct confidence interval for the est
Z &te#t &te#t
' Z &te#t test for for which the distri$ution distri$ution of of the test statistic under statistic under the null &te#t is any statistical test hypothesis can hypothesis can $e appro6imated $y a normal distri$utiondistri$ution- &ecause of the central limit theorem%% many test statistics are appro6imately normally distri$uted for large samples- For theorem each significance level% the *test *test has a single critical value (for e6ample% 5-E for W two tailed) which makes it more convenient than the StudentOs t *test which *test which has separate critical values for each sample si3e- 1herefore% many statistical tests can $e conveniently performed as appro6imate *tests *tests if the sample si3e is large or the population variance known- If the population variance varia nce is unknown (and therefore ther efore has to $e estimated from f rom the sample itself) and the sample si3e is not large (n < )% the StudentOs t *test *test may $e more appropriateIf / is is a statistic that is appro6imately normally distri$uted under the null hypothesis% the ne6t step in performing a *test *test is to estimate the e6pected value \ value \ of / under under the null hypothesis% and then o$tain an estimate s of the standard deviation of deviation of / - 'fter that the standard score Q (/ ] ] \) P s is calculated% from which one*tailed and two*tailed p*values can *values can $e calculated Q
53
as ^(] ) (for upper*tailed tests)% ^( _) (for two*tailed ) (for lower*tailed tests) and ;^(]_ _) tests) where ^ is the standard normal cumulative distri$ution functionfunctionU#e in .$ati$n te#ting
1he term N *testN *testN is often used to refer specifically to the one*sample location test comparing test comparing the mean of a set of measurements to a given constant- If the o$served data - 5% ---% - n are (i) uncorrelated% (ii) have a common mean Z% and (iii) have a common variance Y;% then the sample average - has has mean Z and variance Y; P n- If our null hypothesis is that the mean value of the population is a given num$er Z% we can use - ]Z ]Z as a test*statistic% re"ecting the null hypothesis if - ] ] Z is large1o calculate the standardi3ed statistic Q Q ( - - ] Z) P s% we need to either know or have an appro6imate value for Y;% from which we can calculate s; Q Y; P n- In some applications% Y; is known% $ut this is uncommon- If the sample si3e is moderate or large% we can su$stitute the sample variance for variance for Y;% giving a plug%in test- 1he resulting test will not $e an e6act *test *test since the uncertainty in the sample variance is not accounted forVhowever% it will $e a good appro6imation unless the sample si3e is small- ' t *test can *test can $e used to account for the uncertainty in the sample variance when the sample si3e is small and the data are e6actly normal-- 1here is no universal constant at which the sample si3e is generally considered large normal enough to "ustify use of the plug*in test- 1ypical rules of thum$ range from ; to samplesFor larger sample si3es% the t *test *test procedure gives almost identical p*values as the *test *test procedurether location tests that can $e performed as *tests *tests are the two*sample location test and the paired difference testtestC$nditi$n#
For the *test *test to $e applica$le% certain conditions must $e met•
2uisance parameters should $e known% or estimated with high accuracy (an e6ample of a nuisance parameter would $e the standard deviation in deviation in a one*sample location test)- *tests *tests focus on a single parameter% and treat all other unknown parameters as $eing fi6ed at their true tru e values- In practice% due du e to SlutskyOs theorem% theorem% Nplugging inN consistent estimates consistent estimates of nuisance parameters can $e "ustified- @owever if the sample
54
si3e is not large enough for these estimates to $e reasona$ly accurate% the *test *test may not perform well•
1he test statistic should follow a normal distri$utiondistri$ution- Cenerally% one appeals to the central limit theorem to theorem to "ustify assuming that a test statistic varies normally- 1here is a great deal of statistical research on the question of when a test statistic varies appro6imately normally- If the variation of the test statistic is strongly non*normal% a *test should not $e used *test
If estimates of nuisance parameters are plugged in as discussed a$ove% it is important to use estimates appropriate for the way the data were sampled sampled-- In the special case of *tests *tests for the one or two sample location pro$lem% the usual sample standard deviation is only appropriate if the data were collected as an independent sampleIn some situations% it is possi$le to devise a test that properly accounts for the variation in plug*in estimates of nuisance nu isance parameters- In the case of one and two sample location loc ation pro$lems% a t *test does *test does thisEa,9.e
Suppose that in a particular geographic region% the mean and standard deviation of scores on a reading test are 5 points% and 5; points% respectively- ur interest is in the scores of students in a particular school who received a mean score of E- :e can ask whether this mean score is significantly lower than the regional meanVthat is% are the students in this school compara$le to a simple random sample of students from the region as a whole% or are their scores surprisingly lowR First calculate the standard error of error of the mean.
where
is the population standard deviation-
2e6t calculate the z*score% *score% which is the distance from the sample mean to the population mean in units of the standard error. 55
In this e6ample% we treat the population mean and variance as known% which would $e appropriate if all students in the region were tested- :hen population parameters are unknown% a t test should $e conducted instead1he classroom mean score is E% which is ];-=H standard error units from the population mean of 5- Booking up the z *score *score in a ta$le of the standard normal distri$ution% distri$ution% we find that the pro$a$ility of o$serving a standard normal value $elow ];-=H is appro6imately - ] -=; Q -EG- 1his is the one*sided p*value for the null hypothesis that the students are compara$le to a simple random sample from the population of all test*takers- 1he two*sided p*value is appro6imately -5= (twice the one*sided p*value)-
'nother way of stating things is that with pro$a$ility 5 ] -5= Q -GE% a simple random sample of students would have a mean test score within = units of the population mean:e could also say that with G-EW confidence we re"ect the null hypothesis that hypothesis that the test takers are compara$le to a simple random sample from the population of test*takers1he *test *test tells us that the students of interest have an unusually low mean test score compared to most simple random samples of similar si3e from the population of test*takers- ' deficiency of this analysis is that it does not consider whether the effect si3e of si3e of = points is meaningful- If instead of a classroom% we considered a su$region containing students whose mean score was % nearly the same z *score *score and p*value would $e o$served- 1his shows that if the sample si3e is large enough% very small differences from the null value can $e highly statistically statisticall y significant- See statistical hypothesis testing for further discussion of this issue Z &te#t# &te#t# $ther than .$ati$n te#t#
Bocation tests are the most familiar *tests*tests- 'nother class of *tests *tests arises in ma6imum likelihood estimation likelihood estimation of the parameters the parameters in in a parametric a parametric statistical modelmodel- Ma6imum likelihood estimates are appro6imately normal under certain conditions% and their asymptotic variance can $e calculated in terms of the Fisher informationinformation- 1he ma6imum likelihood estimate divided $y its standard error can $e used as a test statistic for the null hypothesis that
56
the population value of the parameter equals 3ero- More generally% if
is the ma6imum
likelihood estimate of a parameter \% and \ is the value of \ under the null hypothesis%
can $e used as a *test *test statistic:hen using a *test *test for ma6imum likelihood estimates% it is important to $e aware that the normal appro6imation may $e poor if the sample si3e is not sufficiently large- 'lthough there is no simple% universal rule stating how large the sample si3e must $e to use a *test% *test% simulation can simulation can give a good idea as to whether a *test *test is appropriate in a given situation*tests are employed whenever it can $e argued that a test statistic follows a normal *tests distri$ution under the null hypothesis of interest- Many non*parametric non*parametric test test statistics% such as U statistics% statistics% are appro6imately normal for large enough sample si3es% and hence are often performed as *tests*testsFat$r ana.8#i#
Factor analysis is the method used to reduce a large num$er of varia$les into smaller ones- !harles Spearman was the first person to use the factor analysis- 1his method analyses the correlation among a total set of varia$les- 1his is a technique used to e6amine the relationship of entire set of interdependent varia$les without considering the differences $etween dependent and independent varia$lesFor e6ample% factor analysis is used in a firm to reduce a large num$er of factors into smaller groups. 5- Fat$r N$? /% 9r$dut (a) Si3e ($) !olour (c) :eight (d) Design ;- Fat$r N$? 1% Prie (a) !ash terms ($) !redit terms (c) !ost of guarantees - Fat$r N$? % Sta44 57
(a) Lnowledge ($) Jualification (c) ,erformance (d) 'vaila$ility =- Fat$r N$? D% Ser-ie (a) &ased on documentation ($) ,ayment options 1here are numerous applications of factor analysis in marketing researchSome of the e6amples are as follows. :hile doing market segmentation% factor analysis helps in identifying the groups of the
customers In product research% this analysis helps in determining the $rand factor that highly influence
consumer $uying In pricing research% factor analysis helps in identifying the psychographic characteristics of the
price sensitive consumerscon sumersFactor analysis can $e classified in two types. 6ploratory and !onfirmatoryBet7s discuss them in detail
E9.$rat$r8 4at$r ana.8#i#% 1he statistical method of e6ploratory factor analysis (F') is
helpful in uncovering the underlying structure of varia$les which are relatively large in si3e- 1he main o$"ective of this analysis is to understand the relationship among measured varia$les
C$n4ir,at$r8 4at$r ana.8#i#% !onfirmatory factor analysis (!F') is a statistical technique
used to verify the factor structure of a set of o$served varia$les- !F' is the ne6t step after F' to determine the factor structure of the dataMu.ti9.e Regre##i$n Ana.8#i#
Multiple regression analysis is an e6tension of two varia$le regression analysis- In this analysis% two or more independent varia$les are used to estimate the values of a dependent varia$le% instead of one independent varia$le$"ectives of multiple regression analysis are.
1o derive an equation which provides estimates of the dependent varia$le from values of the two
or more independent varia$les
1o o$tain the measure of the error involved in using the regression equation as a $asis of
estimation 58
1o o$tain a measure of the proportion of variance in the dependent varia$le accounted for or
e6plained $y the independent varia$les
Multiple regression equation e6plains the average relationship $etween the given varia$les and the relationship is used to estimate the dependent varia$le- +egression equation refers to the equation for estimating a dependent varia$le- stimating dependent varia$le `5 from the independent varia$les `;% `XX% is known as regression equation of `5 on `;% `XXX- +egression equation% when three varia$les are involved% is given $elow. ` 5-; Q a5-; $5-; `; $5-; ` where% `5-; is an estimated value of the dependent varia$le `; and ` are independent varia$lesa5-; Q (!onstant) the intercept made $y the regression plan- It gives the value of the dependent varia$le% when all the independent varia$les assume a value equal to 3ero $5-; and $5-; Q partial regression coefficients or net regression coefficientscoefficients $5-; Q measures the amount $y which a unit change in `; is e6pected to affect `5 when ` is held constant-
A99.iati$n $4 Mu.ti9.e Regre##i$n# Regre##i$n#
Multiple regressions analysis can $e applied to test the factors such as e6port elasticity% import elasticity% and structural change (contri$ution of manufacturing sector towards CD,) influencing over employment- @ere% employment is a dependent varia$le-
bMultiple regression analysis is an e6tension of two varia$le regression analysisbIn this analysis% two or more independent varia$les are used to estimate the values of a dependent varia$le% instead of one independent varia$leb$"ectives of multiple regression analysis are. 1o derive an equation which provides estimates of the dependent varia$le from values of two or more independent varia$les 1o o$tain the measure of the error involved in using the regression equation as a $asis of estimation 59
1o o$tain a measure of the proportion of variance in the dependent varia$le accounted for or e6plained $y the independent varia$lesS1,S FBB:D I2 !M,B1I2C 1@ S1UDA (i) Bi$raries at (a) Indian !ouncil for 'pplied conomic +esearch (I!'+)% ($) Indian Institute of 1echnology% (II1) Delhi% (c) !ouncil of scientific and industrial +esearch (!SI+) (d)Doctor of ,hilosophy (,@D) cham$er of commerce% are visited- Management P marketing $ooks% "ournals are consultedco nsulted(ii) Internet sites containing information on 2ike shoes / marketing are $rowsed(iii) Sample survey was conducted(iv) Data was thoroughly checked for error 1he collected data are placed into an order- ,ercentages of respondents answered similarly are calculated and placed in a ta$le- 1hen this is interpreted- 1his involved drawing conclusion from the gathered data- Interpretation changes the new information immerging from the analysis into information that is pertinent or relevant to the study-
!2!BUSI2 :'S D+':2 &'SD 2 1@ SU+9A FI2DI2CS Finally recommendation was made to improve the sales strategy of 2ike shoes to increase the sales volume in ladies segmentBIMI1'1I2S F +S'+!@ 1he geographical area was very much limited to residential area / so the results are not particularly reflection reflectio n of the current $ehavior$eh avior&I'SS '2D 22*!,+'1I2 F 1@ +S,2D21S 1he collected data are placed into an order- ,ercentages of respondents answered similarly
⇒
are calculated and placed in a ta$le- 1hen this is interpreted- 1his involved drawing conclusion from the gathered data- Interpretation changes the new information immerging from the analysis into information that is pertinent or relevant to the study Due to limited time period and constrained working hours for most of the respondents% the
⇒
answers at times were vague enough to $e ignored Most of the people in India take their 2ike Shoes in the period preceding March / so the
⇒
response to initial contacts were not all encouraging and that has $een the primary reason in the ina$ility to quantify the results large enough so as to deduce any relevant outcomes60
CHAPTER&D COMPANY PROFI(E N#%e& In'. is In'. is a !"eri#a "ultiatioal #orporatio that #orporatio that is e$a$e% i the %esi$& %evelop"et& "aufa#turi$ a% worl%wi%e "ar'eti$ a% sales of footwear& apparel& e(uip"et& e(uip"et& a##essories a% a% serv servi# i#es es)) The The #o"p #o"pa ay y is hea% hea%(u (uar arte terre% ear ear *eaverto& *eaverto & +re$o& +re$o& i the Portla% "etropolita "etropolita area) ,t area) ,t is oe of the worl%-s lar$est suppliers of athleti# shoes a% shoes a% apparel a% apparel a% a "a.or "aufa#tur "aufa#turer er of sports e(uip"et& e(uip"et& with reveue i e/#ess of 24)1 illio i its s#al year 2012 e%i$ ay 31& 2012) !s of 2012& it e"ploye% "ore tha 44&000 people worl%wi%e) , 2014 the ra% aloe was value% at 19 illio& "a'i$ it the "ost valuale ra% a"o$ sports usiesses) The #o"pay was fou%e% o auary 25& 1964& as ()e R#bbon Sport$& y *ill *ower"a a% Phil i$ht& i$ht& a% o:#ially e#a"e ;i'e& ,#) o ay 30& 1971) The #o"pay ta'es its a"e fro" ;i'e& ;i'e& the ers *la>ers&& !ir ?or#e ?or#e 1& ;i' ;i'e Du Du'& !ir a/& a/& ?oa"po ?oa"posite site&& ;i'e 'ateoar%i$ 'ateoar%i$&& a% susi%iaries susi%iaries i#lu%i$ i#lu%i$ *ra% or%a& or%a& Hurley ,teratioal a% @overse) ;i'e ;i'e also owe% *auer Ho#'ey Ho#'ey later rea"e rea"e% % ;i'e *auer *auer etwee 1995 a% 2008& a% previously owe% @ole Haa a% Haa a% "ro) "ro) , a%%itio to "aufa#turi$ sportswear sportswear a% e(uip"et& the #o"pay operates retail stores u%er the ;i'etow a"e) ;i'e sposors "ay hi$hAprole athletes a% sports tea"s arou% the worl%& with the hi$hly re#o$i>e% tra%e"ar's of B ust Do ,tB ,tB a% the woosh lo$o) woosh lo$o)
Origin# and hi#t$r8
61
' 2ike Factory Store in 9aughan Mills 2ike% originally known as &lue +i$$on +i$$ on Sports (&+S)% was founded foun ded $y University of regon track regon track athlete ,hil Lnight and Lnight and his coach &ill &owerman in &owerman in ?anuary 5E=- 1he company initially operated as a distri$utor for ?apanese shoe maker nitsuka 1iger (now (now 'SI!S 'SI!S)% )% making most sales at track meets out of LnightOs automo$ile'ccording to tis Davis% Davis% a student athlete whom &owerman coached at the University of regon% who later went on to win two gold medals at the 5E Summe Summerr lym lympics pics%% &owerman made the first pair of 2ike shoes for him% contradicting a claim that they were made for ,hil Lnight- Says Davis% NI told 1o 1om m &rokaw that &rokaw that I was the first- I donOt care what all the $illionaires saysay- &ill &owerman &owerman made the first pair of shoes for me- ,eople donOt $elieve me- In fact% I didnOt like the way they felt on my feet- 1here was no support and they were too tight- &ut I saw &owerman make them from the waffle iron% iron% and they were mine-N In 5E=% in its first year in $usiness% &+S sold 5% pairs of ?apanese running shoes grossing G%- &y 5E the fledgling company had acquired a full*time employee% and sales had reached ;%- In 5EE% &+S opened its first retail store% located at 5H ,ico &oulevard in Santa Monica% !alifor !alifornia nia ne6t to a $eauty salon% salon % so its employees no longer needed n eeded to sell se ll inventory from the $ack of their carsca rs- In 5EH% due to rapid rapidly ly increa increasi sing ng sales% sales% &+S &+S e6pan e6panded ded reta retail il and distri distri$ut $utio ion n opera operati tions ons on the the ast ast !oast !oast%% in :ellesley% :e llesley% Massachusetts Massac husetts-&y 5H5% the relationship relationship $etween &+S and nitsuka nitsuka 1iger was nearing an end- &+S prepared to launch its its own own line line of footw footwea ear% r% which which would would $ear $ear the the Swoosh newly newly desig designed ned $y !arolyn DavidsonDavidson- 1he Swoosh was first used $y 2ike on ?une 5G% 5H5% and was registered with the U-S- ,atent and 1rademark ffice on ffice on ?anuary ;;% 5H=In 5HE% the company hired ?ohn &rown and ,artners% $ased in Seattle% as its first advertising agency- 1he following following year% the agency created the first N$rand adN for 2ike% called N1here is no finish lineN% in which no 2ike product was shown- &y 5G% 2ike had attained a W market share in the U-S- athletic shoe market% and the company went pu$lic in Decem$er of that year-
62
1ogeth 1o gether% er% 2ike and :ieden iedenLenn Lennedy edy have created created many many print print and televis television ion adverti advertisem sements ents%% and :iedenLenn :iedenLennedy edy remains 2ikeOs primary ad agencyagency- It was agency co*founder co*founder Dan :ieden who :ieden who coined the now*famous slogan N?ust N?ust Do ItN ItN for a 5GG 2ike ad campaign% which was chosen $y 0dvertising 0ge as one of the top five ad slogans slogans of the ;th century century and enshrined enshrined in the Smithsonian InstitutionInstitution- :alt Stack was featured featured in 2ikeOs 2ikeOs first N?ust Do ItN advertisem advertisement% ent% which de$uted de$uted on ?uly 5% 5GG5GG- :ieden :ieden credits the inspiration for the slogan to NBetOs do itN% the last words spoken $y Cary Cilmore $efore Cilmore $efore he was e6ecuted1hroughout 1hroughout the 5Gs% 2ike e6panded its product line to encompass many sports and regions throughout the world- In 5% 2ike moved into its eight*$uilding :orld @eadquarters campus in &eaverton% regon1he first 2ike retail store% du$$ed 2iketown% opened in downtown ,ortland in 2ovem$er of that year,hil Lnight announced in mid*;5 that he is planning to step down as chairman of 2ike in ;5EAui#iti$n#
2ike has acquired ac quired several apparel and footwear companies over the course of its history% some of which have since $een sold- Its first acquisition acquisition was the upscale footwear footwear company !ole @aan in @aan in 5GG% followed $y the purchase of &au &auer er @oc @ockey key in 5= 5=-- In ;; ;;%% 2ike 2ike $oug $ought ht surf surf appa appare rell comp compan any y @urley International from founder &o$ @urley@urley- In ;% 2ike paid US million to acquire !onverse !onverse%% makers of the !huck 1aylor 'll*Stars line of sneakerssneakers- 1he company acquired Starter in in ;= and Um$ro Um$ro%% known as the manufacturers of the ngland national foot$all teamO teamOs kit kit%% in ;GIn order to refocus on its core $usiness lines% 2ike $egan divesting of some of its su$sidiaries in the ;s;s- It sold Starter Starter in ;H and &auer @ockey in ;G;G- 1he company company sold Um$ro in ;5; and !ole @aan in ;5- 's of ;5% 2ike owns two key su$sidiaries. !onverse Inc- and Inc- and @urley InternationalInternationalFinane
2ike Inc- will $uy $ack $ ack G G $illion of 2ikeOs 2ikeO s class & stock in = years after a fter the th e current curre nt $illion $uy$ack program is completed in second secon d quarter of fiscal ;5- Up to Septem$er ;5;% 2ike Inc- has $ought $ack 5 $illion of stock 2ike was made a mem$er of the Dow ?ones Industrial 'verage 'verage in in ;5% when it replaced 'lcoa 'lcoa-n Decem$er 5% ;5% 2ike Inc-Os quarterly profit rose due to a 5 percent increase increase in glo$al orders for merchandise since 'pril of that year- Future orders of shoes or clothes for delivery $etween Decem$er and 'pril% rose to 5-= $illion- 2ike shares (2L) rose -E percent to HG-H in e6tended trading63
In 2ovem$er ;5% 2ike announced it would initiate a 5; $illion share $uy$ack% as well as a two*for* one stock split% with shares to $egin trading at the decreased price on Decem$er ;=- 1he split will $e the seventh in company historyn 'pril ;E% ;5E% it was announced that 2ike would release the 2ike 'ir Force 5G NlympicN associated with the dream team of 5;5;- It will drop on ?uly H at select 2ike Sportswear retailersPr$dut#
' 2ike $rand athletic shoe
' pair of 2ike 'ir ?ordan I $asket$all shoes S9$rt# eui9,ent
2ike produces a wide range of sports equipment- 1heir first products were track running shoes- 1hey currently also make shoes% "erseys% "erseys% shorts% cleats cleats%% $aselayers $aselayers%% etc- for a wide range of sports% including track and field% $ase$all% ice hockey% hockey% tennis% association foot$all (soccer)% lacrosse lacrosse%% $asket$all% and cricket cricket- 2ike 'ir Ma6 Ma6 is a line of shoes first released $y 2ike% Inc- in 5GH- 'dditional product lines were introduced introduced later% later% such as 'ir @uarache% @uarache% which de$uted in 5;- 1he most recent additions to their line are the 2ike E-% 2ike 2A`% 2A`% and 2ike S& shoes% designed for skate$oarding skate$oarding-- 2ike has recently introduced cricket shoes called 'ir oom Aorker% designed to $e W lighter than their competitorsO- In ;G% 2ike introduced the 'ir ?ordan ``% a high*performance $asket$all shoe designed with the environment in mind 2ike sells an assortment of products% including shoes and apparel for sports activities like association foot$all% $asket$all% running% com$at sports% sports% tennis% 'merican foot$all% foot$all% athletics% golf% and cross trainin training g 64
for men% men% wome women% n% and and chil childre drenn- 2ike 2ike also also sell sellss sho shoes es for for outdoo outdoorr acti activit vitie iess such such as tenni tennis% s% golf% golf% skate$oarding%% asso skate$oarding associ ciat atio ion n foot foot$a $all ll%% $ase $ase$a $all ll%% 'm 'meric erican an foot foot$all $all%% cycl cyclin ing% g% voll volley ey$a $all ll%% wrestling wrestling%% cheerleading%% aquatic activities% auto racing% and other athletic and recreational uses- 2ike recently teamed cheerleading up with 'pple Inc- to Inc- to produce the 2ike the 2ike product product that monitors a runnerOs run nerOs performance via a radio device in the shoe that links to the i,od nanonano- :hile the product generates useful statistics% statistics% it has $een critici3ed critici3ed $y researchers who were a$le to identify usersO +FID +FID devices devices from E feet (5G m) away using small% conceala$le intelligence motes in a wireless sensor network In ;=% 2ike launched the S,'+J 1raining ,rogramPDivision,rogramPDivision- Some of 2ikeOs newest shoes contain Flywire and Flywire and Bunarlite Foam to reduce weight- 1he 'ir oom 9omero running shoe% introduced in ;E and currently in its 55th generation% featured a com$ination of ground$reaking innovations including a full length air cushioned sole% an e6ternal heel counter% a crashpad in the heel for shock a$sorption% and Fit Frame technology for a sta$le fit1he ;5 2ike ,ro !om$at "ersey collection were worn $y teams from the following universities. Miami% 'la$ama% &oise State University% Florida% hio State% regon State University% 1e6as !hristian University% 9irginia 9irginia 1ech% :est :est 9irginia% 9irginia% and ,itts$urgh- 1eams will wear these "erseys in key matchups as well as any time the athletic department deems it necessaryStreet 4a#hi$n#
1he 2ike $rand% with its distinct 9 shaped logo% quickly $ecame regarded as a status sym$ol in modern ur$an fashion fashion and hip*hop fashion due fashion due to its association with success in sport- &eginning in the 5Gs% variou variouss item itemss of 2ike 2ike cloth clothing ing $ecam $ecamee staple stapless of mains mainstre tream am 'meric merican an you youth th fash fashion ion%% especial especially ly tracksuits% shell suits% suits% $ase$all caps caps%% 'ir ?ordans% ?ordans% and 'ir Ma6 running Ma6 running shoes with thick% air cushioned ru$$er ru$$er soles soles and contrast contrasting ing $lue% $lue% yellow yellow%% green% green% white% white% or red trimtrim- Bimited Bimited edition edition sneakers sneakers and prototypes with a regional early release were known as Juickstrikes Juickstrikes%% and $ecame highly desira$le items for teenage mem$ers of the sneakerhead su$culturesu$culture&y the 5s and ;s ;s%% 'merican 'merican and uropean teenagers teenagers associated associated with the preppy the preppy or or popular popular clique $egan com$ining these sneakers% leggings leggings%% sweatpants% crop tops% tops% and tracksuits with regular casual chic street clothes such as "eans% skirts% leg warme warmers rs%% slouch socks% and $om$er and $om$er "ackets "ackets-- ,articularly popular were the unise6 spande6 2ike 1empo compression shorts worn shorts worn for cycling and running% which had a mesh lining% waterproofing% and% later in the ;s% a 3ip pocket for a :alkman or M, player From the late ;s into the ;5s ;5s%% 2ike lite $asket$all lite $asket$all socks socks $egan to $e worn as everyday clothes $y fans of hip*hop and young children- riginally plain white or $lack% these socks had special shock 65
a$sor$ing cushioning in the sole plus a moisture wicking upper weave- Bater% 2ike lite socks $ecame availa$le in $right colors inspired $y throw$ack $asket$all throw$ack $asket$all uniforms uniforms%% often with contrasting contrasting $old a$stract designs% images of cele$rities% and freehand digital print to capitalise upon the emerging nostalgia for 5s fashionfashionIn ;5% a new self lacing shoe was introduced that will officially officially release in ;5E- !alled the 2ike Mag% it had a preliminary limited release in ;5% only availa$le $y auction with all proceeds going to the Michael ?- Fo6 FoundationFoundation- 1his was done again in ;5E 2ike have introduced a premium line% focused more on street wear than sports wear called c alled 2ikeBa$ Headuarter#
2ikeOs world headquarters are surrounded $y the city of &eaverton% $ut are within unincorporated :ashington !ounty!ounty- 1he city attempted to forci$ly anne6 2ikeOs headquarters% which led to a lawsuit $y 2ike% and a nd lo$$ying lo$$ying $y $y the company that ultimately ultimately ended in regon Senate Senate &ill GGH of ;- Under that $illOs terms% &eaverton is specifically $arred from forci$ly anne6ing the land that 2ike and !olum$ia Sportswear occupy occupy in :ashington !ounty for years% while lectro Scientific Industries and 1ektroni6 receive the same protection for years- 2ike is planning to $uild a -; million million square foot e6pansion to its :orld @eadquarters in &eaverton- 1he design will target BD ,latinum certification and will $e highlighted $y natural daylight% and a grey water treatment centerC$ntr$-er#8
2ike office in 2orth 'merica 2ike has contracted with more than H shops around the world and has offices located in = countries outside the United States- Most of the factories are located in 'sia% including Indonesia% !hina% 1aiwan% India% 1hailand% 9ietnam% ,akistan% ,hilippines% and Malaysia- 2ike is hesitant to disclose information a$out the contract companies it works with- @owever% due to harsh criticism from some organi3ations like !orp:atch%% 2ike has disclosed information a$out its contract factories in its !orporate Covernance !orp:atch +eport66
Seat#h$9#
2ike has $een critici3ed for contracting with factories (known as 2ike as 2ike sweatshops sweatshops)) in countries such as !hina%% 9ietnam !hina 9ietnam%% Indonesia Indonesia and Me6ico Me6ico-- 9ietnam Ba$or :atch% an activist group% has documented that factories factories contracted contracted $y 2ike have violated minimum wage and overtime overtime laws in 9ietnam 9ietnam as late as 5E% although 2ike claims that this practice has $een stopped- 1he company has $een su$"ect to much critical coverage of the often poor working conditions and e6ploitation e6ploitation of of cheap overseas la$or employed in the free trade 3ones where their goods are typically manufactured- Sources for this criticism include 2aomi include 2aomi LleinOOs $ook 1o Llein Moore documentaries 1o #ogo and Michael Moore documentaries!ampaigns have $een taken up $y many colleges and universities% especially anti*glo$alisation groups% as well as several anti*sweatshop anti*sweatshop groups groups such as the United Students 'gainst Sweatshops's of ?uly ;55% 2ike stated that two*thirds of its factories producing !onverse products still do not meet the companyOs standards for worker treatmenttreatment- ' ?uly ;55 'ssociated ,ress article ,ress article stated that employees at the companyOs plants in Indonesia Indonesia reported reported constant a$use from supervisorsChi.d .a+$r a..egati$n#
During the 5s% 2ike faced criticism for the use of child la$or in in !am$odia !am$odia and and ,akistan ,akistan in in factories it contracted contracted to manufacture manufacture soccer $alls- 'lthough 'lthough 2ike took action to cur$ or at least reduce the practice% they continue to contract contract their production production to companies companies that operate in areas where inadequate regulation and monitoring make it hard to ensure that child la$or is not $eing used- In ;5% a &&! documentary uncovered occurrences occurrences of child la$or and poor working conditions in a !am$odian !am$odian factory used $y 2ike1he documentary focused on si6 girls% who all worked seven days a week% often 5E hours a dayStri7e in China 4at$r8
In 'pril 'pril ;5 ;5=% =% one of the $iggest $iggest strike strikess in mainlan mainland d !hina !hina took place place at the Aue Auen Industrial @oldings Dongguan shoe factory factory%% producin producing g amongst amongst others others for 2ike2ike- Aue Auen did underpay underpay an employee $y ; yuan (=-G; US Dollars) per month- 1he average salary at Aue Auen is yuan per month- 1he factory employs H% people- 1his practice was in place for nearly ; yearsJu#tin Gat.in #9$n#$r#hi9
In March ;5% 2ike drew criticism after announcing a new sponsorship deal with 'merican sprinter ?ustin Catlin who Catlin who had served two $ans for doping- 2ike had previously dropped Catlin after his second failed drug test and resulting long term $an- !ritics said that 2ike was sending out a $ad message $y 67
endorsing an athlete who has never $een repentant for his actions and still causes widespread discontent within the sport- nglish sprinter Marlon Devonish descri$ed the deal as Na kick in the teeth to the W of guys who are cleanNEn-ir$n,enta. re$rd
'ccording to the 2ew ngland*$ased environmental organi3ation !lean 'ir*!ool ,lanet% 2ike ranks among the top three companies (out of E) in a survey of climate*friendly climate*friendly companiescompanies- 2ike has also $een praised for its 2ike its 2ike Crind Crind program program (which closes the product the product lifecycle lifecycle)) $y groups groups like !lima !limate te !ounts !ounts-ne campaign that 2ike $egan for arth Day ;G was a commercial that featured $asket$all star Steve 2ash wearing 2ash wearing 2ikeOs 1rash 1alk Shoe% which had $een constructed in Fe$ruary ;G from pieces of leather and synthetic leather waste from factory floors- 1he 1rash 1alk Shoe also featured a sole composed of ground*up ru$$er from a shoe recycling program- 2ike claims this is the first performance $asket$all shoe that has $een created from manufacturing waste% $ut it only produced % pairs for sale'nother pro"ect 2ike has $egun is called 2ikeOs +euse*'*Shoe program- 1his program% started in 5% is 2ikeOs longest*running program that $enefits $oth the environment and the community $y collecting old athletic shoes of any type in order to process and recycle them- 1he material that is produced is then used to help create sports surfaces such as $asket$all courts% running tracks% and playgrounds ' pro"ect through the University of 2orth !arolina at !hapel @ill found @ill found workers were e6posed to to6ic isocyanates and other other chemi chemical calss in footw footwea earr facto factorie riess in 1hailand 1hailand-- In addition to inhalation% dermal e6posure was the $iggest pro$lem found- 1his could result in allergic reactions including asthmatic reactionsMar7eting #trateg8
2ike promotes its products $y sponsorshi sponsorship p agreeme agreements nts with with cele$rity athletes% professional teams and college athletic teamsAd-erti#ing
In 5G;% 2ike aired its first national television ads% created $y newly formed ad agency :iedenLennedy (:L)% (:L)% during the $roadcast $roadcast of the 2ew the 2ew Aork Marathon Marathon-- 1he !annes 'dvertising Festival has named 2ike its 'dvertiser of the Aear Aear in 5= and ;% making it the first company to receive that honor twice 2ike also has earned the mmy 'ward ward for for $est commercial twice since the award was first created in the 5s- 1he first was for N1he Morning 'fter% 'fter%NN a satirical satirical look at what a runner might face on the morning 68
of ?anuary 5% ; if every dire prediction a$out the A;L pro$lem came pro$lem came to fruition- 1he second was for a ;; spot called NMove%N which featured a series of famous and everyday athletes in a variety of athletic athletic pursuits'eat.e# #$ng
2ike was critici3ed critici 3ed for its use u se of o f the &eatles &eatles song song N+evolution N+evolutionNN in a 5GH commercial against the wishes of 'pple +ecords% +ecords% the &eatlesO recording company- 2ike paid US;% to !apitol +ecords Inc-% +ecords Inc-% which held the 2orth 'merican 'merican licensing rights to the recordings% for the right to use the &eatlesO &eatlesO rendition for a year'pple sued 2ike Inc-% !apitol +ecords Inc-% MI +ecords Inc- and :iedenLen :iedenLennedy nedy for 5 million-T !apitol*MI countered $y saying the lawsuit was NgroundlessN $ecause !apitol had licensed the use of N+evolu N+evolutio tionN nN with with the Nactive Nactive supp support ort and encoura encouragem gement ent of Aoko no% no% a shareholder and director of 'pple-N 2ike discontinued airing ads featuring N+evolutionN in March 5GG- Aoko no later gave permission to 2ike to use ?ohn BennonOs BennonOs NInstant LarmaN in another advertisementNe ,edia ,ar7eting , ar7eting
2ike was an early adopter of interne of internett marketi marketing ng%% email managem management ent technologies% technologies% and using $roadcast using $roadcast and narrowcast narrowcast communication communication technologies to create multimedia marketing campaigns-
Min$r Threat ad-erti#e,ent
In late late ?une ?une ; ;%% 2ike 2ike rece receiv ived ed crit critic icis ism m from from Ian Mac MacLay Layee% ow owner of Dis Dischor chord d +ec +ecords ords%% guitaristPvocalist for Fuga3i and 1he vens% vens% and front man of the defunct punk $and Minor 1hreat% 1hreat% for appropriating imagery and te6t from Minor 1hreatOs 5G5 self*titled al$umOs al$umOs cover art in a flyer promoting 2ike Skate$oardingO Skate$oardingOs ; ast !oast demo tourn ?une ;H% 2ike Skate$oardingOs we$site issued an apology to Dischord% Minor 1hreat% and fans of $oth and announced that they have tried to remove and dispose of all flyers- 1hey stated that the people who designed it were skate$oarders and Minor 1hreat fans themselves who created the advertisement out of respect and appreciation appreciation for the $and- 1he dispute dispute was eventually settled settled out of court $etween 2ike and Minor 1hreat69
2iketown at 6ford !ircus% !ircus% Bondon Ni7e 3?)
's part of the E- campaign% 2ike introduced a new line of 1*shirts 1*shirts that include phrases such as NDopeN% NDopeN% NCet @ighN and N+ide ,ipeN 0 sports lingo that is also a dou$le entendre for drug useuse- &oston Mayor 1homas Menino e6pressed Menino e6pressed his o$"ection to the shirts after seeing them in a window display at the cityOs 2iketown and asked the store to remove the displaydispla y- N:hat we donOt need is a ma"or corporation like 2ike% which tries to appeal to the younger generation% out there giving credence to the drug issue%N Menino told /he 2oston 3erald - ' company official stated the shirts were meant to pay homage to e6treme sports% and
that 2ike does not condone the illegal use of drugs- 2ike 2ike was forced to replace the th e shirt lineN'A uni4$r, and a99are. dea.
In ?une ;5% 2ike signed an G*year deal with the 2&' the 2&' to to $ecome the official apparel supplier for the league% $eginning $eginning with the ;5H05G season- 1he $rand takes over for 'didas 'didas%% who provided the uniforms and apparel for the league since ;E- Unlike previous deals% 2ikeOs logo will appear on 2&' game "erseys 0 a first for the leagueS9$n#$r#hi9
+onaldinho (pictured +onaldinho (pictured with &arcelona in ;H) appeared in a ; 2ike advertisement advertisement that went viral viral on on Aou1u$e%% $ecoming the siteOs first video to reach one million viewsAou1u$e 2ike pays top athletes in many sports to use their products and promote and promote and and advertise their technology and design-
70
2ikeOs first professional athlete endorser was +omanian tennis player Ilie 2stas 2stasee- 1he first track endorser endorser was distance distance runner Steve ,refont ,refontaine aine-- ,refontaine was the pri3ed pupil of the companyOs co* founder founder%% &ill &owerman% &owerman% while he coached at the University of regon- 1oday% the Steve ,refontaine &uilding is named in his honor at 2ikeOs corporate headquarters 2ike has also sponsored sponso red many other successful successfu l track and field athletes field athletes over the years% such as !arl Bewis% Bewis% ?ackie ?oyner*Lersee and Se$asti Se$astian an !oe !oe-- 1he signing of $asket$all player Michael ?ordan in ?ordan in 5G=% with his su$sequent promotion of 2ike over the course of his career% with Spike Bee as Mars &lackmon% &lackmon% proved to $e one of the $iggest $oosts to 2ikeOs pu$licity and sales 2ike has $een the official kit sponsor for the Indian cricket team since team since ; 2ike is a ma"or sponsor of the athletic programs at ,enn State Universi University ty and and named its first child care facility facility after after ?oe ,at ,aterno erno when when it opened opened in 5 5 at the comp company anyOs Os headqu headquart arter erss- 2ike 2ike origi original nally ly announced it would not remove ,aternoOs name name from the $uilding in the wake of the ,enn State se6 a$use scandal- 'fter the Freeh +eport was released on ?uly 5;% ;5;% 2ike ! Mark ,arker announced the name ?oe ,aterno would $e removed immediately from the child development center- ' new name has yet to $e announced 2ike also sponsored spo nsored association associa tion foot$all players such as +onaldinho +onaldinho%% +onaldo +onaldo%% !ristiano +onaldo% +onaldo% Didier Drog$a%% 2eymar % latan I$rahimovi% Drog$a I$rahimovi% 1hierry @enry% @enry% :a :ayne yne +ooney +ooney%% Francesco 1o 1otti tti%% 'ndrs Iniesta and Iniesta and Bandon Donovan among Donovan among othersIn ?anuary ;5% 2ike signed +ory McIlroy% McIlroy% the then 2o 5 golfer in the world to a 5*year sponsorship deal worth ; million- 1he deal includes using 2ikeOs range of golf clu$s% clu$s% a move 2ick move 2ick Faldo previously Faldo previously descri$ed as NdangerousN for McIlroyOs game- n Fe$ruary ;5% ;5% 2ike announced it suspended its contract with South 'frican athlete scar ,istorius% ,istorius% due to his $eing charged with premeditated with premeditated murder - In 'ugust ;5=% 2ike announced that they will not renew their kit supply deal with Manchester United after the ;5=05 season% citing rising costs- Since the start of the ;505E season% 'didas has manufactured Manchester UnitedOs kit as part of a world*record 5*year deal worth a minimum of H million 2ike is currently sponsoring a group of long*dist long*distance ance runners runners in in an attempt to run a su$*two hour ;E-; mile marathon- 1he current world record is ;.;.H- 2ike is putting together a team of Kdesigners% scientists% coaches% and statisticians# with the goal of having one or more runners $reak the record $y percent in the spring sprin g of ;5H-
71
@auses , 2012& ;i'e is liste% as a parter of the CD #a"pai$& to$ether with other ra%s su#h as
MAJOR MACRO EN"IRONMENT FORCES
the indust industry ry77s strong strong glo$al glo$al presen presence% ce% there there are are many many legal legal P$.itia.6 P$.itia.6(ega (ega.. En-ir$n En-ir$n,ent ,ent%% Due to the restraints that must $e taken into consideration- 1here are positive aspects such as those provided $y 2'F1' and C'1 C'11 such as% reduced importPe6port duties when operating in Me6ico and !anada% and access to international international markets and tariff cut$acks as provided $y C'1 C'11- @owever @owever with the formation of the uropean uropean Union Union and the introducti introduction on of the uro% has increase increased d uropea uropean n influenc influencee on import import controls% $ut it has also created one uropean market- In 5 the U (uropean Union) enforced on imported athletic footwear from !hina and Indonesia anti*dumping duties- 1he U-S-7s diplomatic relations with countries such as !hina and 9ietnam is critical for shoe manufacturers who want to produce in those countries- In addition to these changes% there are also laws that vary from country to country which may provide opportunities opportu nities or impose restrictionsrestrictio nsSOCIOCU(TURA(
1he most influential cultural change would $e how to approach the changing youth markets who are mostly interested in $oots% and sandals- ven though the consumers in the footwear industry have $ecome more $rand conscious8 that does not mean that they are $uying more athletic shoes- 1he industry was e6periencing e6periencing a decrease in health and fitness awareness awareness and practices% $ut it is $elieved that the onset of the twenty first century has $rought it $ack to wear it use to $e in the early 7s!EMOGRAPHIC
1he industry is reali3ing the influ6 of women7s sport players and leisure fitness participants% and is preparing to accommodate such an increase in female consumers- 'lso as women increase their consum consumpti ption on the young younger er genera generati tion on is decrea decreasi sing8 ng8 due to the pop popula ulari rity ty of $oo $oots ts and sandal sandalss'dditionally $ecause of the increase and profita$ility of technological industries some countries are deciding not to manufacture shoes in hopes of making more money in other industries72
ECONOMIC
Due to the organi3ation of the uropean Union and the dis$ursement of the uro some economic discomfort discomfort in participating participating countries may $e felt- In addition to this% other economic changes may $e felt through the increase of inflation and unemployment in 'sia and the ,acific +im% Batin 'merica% and +ussia% +ussia% consequen consequently tly having a negativ negativee effect effect on shoe salessales- Further Furthermor moree the fluctuati fluctuation on of foreign currency and interest rates% may also have negative effects on the industry-
TECHNO(OGICA(
's the nature of science and technology change new advances are $eing made% $ut $ecause of the industries competitive nature each company makes their own advances% and then copyrights them- 1he industry has come very far $y studying the fashion% leisure% fitness and sport consumersIN!USTRY& GRO@ING OR MATURE
It is still a growing industry% $ecause new advances in shoe technology and athletic wear are made everydayeveryday- 'lso% with the influ6 of clothing designers into the athletic shoe market% the industry cannot $e mature- 2o one company within the industry has really lived up to its true potential yet- For e6ample% 2ike has a very large percent of the market and they themselves are still growingS@OT ANA(YSIS ANA(YSIS OF NIKE Strength#% •
&rand name recognition% $ecause 2ike has $een around so long% the $rand is recogni3ed and respected $oth internationally and domestically-
•
&rand loyalty% 2ike has consistently produced quality products that appeal to its consumers $oth internationally and domestically-
•
2ike carries a wide arrangement arrangemen t of products with a large amount of options for personal person al preference-
•
2ike is constantly trying to increase their international inter national presence-
•
Bow Manufacturing cost 73
•
•
2ike has an on*line store sto re where custom shoes may $e purchased pur chased In such a competitive competitive environment environment 2ike steps it up $y investing a large portion of their income into +/D% with the formation of the 2ike Sport +esearch Ba$oratory in 5G% and the introduction of the 'dvance ,roduct ngineering department8 2ike is making sure that they stay in control of their market shareshare- 1hese two two departments departments ensure that 2ike 2ike has new shoe styles styles and are constantly developing new products-
•
2ike is the world7s no- 5 shoemaker- It designs and sells shoes for a variety of sports
including $ase$all% golf% cheerleading% volley$all% tennis and foot$all• 2ike uses a KMake to Stock# customer order which provides a fast service to customers from availa$le stock• 2ike operates 2ike 1o 1own wn shoe and sportswear stores% 2ike factory outlets and 2ike :omen shops- 2ike sells its products throughout US and in more than 5G countriesdevelopment% as is evidenced $y its evolving and innovative • 2ike is strong at research and development% product range- 1hey then manufacture wherever they can produce high quality product at the lowest possi$le price• 2ike is a glo$al $rand- It is the th e num$er one sports $rand in i n the :orld:orld- Its famous Swoosh7 is instantly recogni3a$le% and ,hil Lnight (Founder and !) even has it tattooed on his ankle-
•
@ea7ne##e#%
It is a glo$al $rand and no-5 shoe maker• 2ike has the "oint venture with 'pple7s 'pple7s I,od in continued innovationinnovatio n• It has strong distri$ution channels• It has strong position over its minimal long term de$t• @as innovative shoe design which ena$le consumer to design their own shoe online•
It has diversified products worldwide• @as strong marketing campaigns and endorses different products• @ave different segments as $ase$all% golf and footwear etc• Its sales highly depend on the footwear segment• It has violations in history and they provide minimal wage rate to its :orkers• @as poor conditions in work places% It is having $ad reputation• @as higher price compared to its competitors as 'didas•
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•
!ontrac !ontractt manufac manufactur turing ing of sho shoes es to low*wage low*wage factories factories makes makes 2ike 2ike suscepti suscepti$le $le to laws% laws% and economic pro$lems a$road-
•
O99$rtunitie#%
•
,roduct Diversification% with new technology and increased earnings they should $e a$le to invest even more into + / D-
•
Increase their glo$al presence $y e6panding their services to countries such as% !hile% ,eru% &olivia% India% Me6ico% and South 'frica in an attempt to serve those with the largest populations-
•
1he key is more advertising% advertising% encourage young people to purchase 2ike7s 2ike7s even if they are not sport7 players-
•
Increase marketing to the female consumer-
•
Increase manufacturing of products that the new generation is interested% specifically $oots and sandals-
•
Threat#%
•
Increase competition $oth domestically and internationally-
•
!hange in the young consumer preferences to sandals and $oots-
•
@igh inflation and unemployment in 'sia and ,acific +im% Batin 'merica% 'merica% and +ussia may cause a decline in shoe sales-
•
1he fluctuation of foreign currency and interest rate may pose a threat to earnings-
•
Import and e6port regulations-
0 PS IN NIKES MARKETING MI
,+DU!1. 2IL7s athletic footwear products are designed primarily for specific athletic use% although a large percentage of the products are worn for casual or leisure purposes- 1hey place considera$le emphasis 75
on high quality construction and innovative design for men% women and children- +unning% $asket$all% children7s% cross training and women7s shoes are currently our top*selling product categories and e6pect them to continue to lead in product sales in the near future- @owever% they also market shoes designed for for outdoo outdoorr activ activit ities ies%% tenni tennis% s% golf% golf% socce soccer% r% $ase$ $ase$all all%% foot$a foot$all ll%% $icyc $icyclin ling% g% volley volley$al $all% l% wres wrestl tling ing%% cheerleading% cheerleading% aquatic activities% activities% hiking% and other athletic athletic and recreational uses- 1hey 1hey sell active sports apparel covering most of the a$ove categories% athletically inspired lifestyle apparel% as well as athletic $ags and accessory items- 2IL apparel and accessories are designed to complement their athletic footwear products% feature the same trademarks and are sold through the same marketing and distri$ution channels- 1hey often market footwear% apparel and accessories in Kcollections# of similar design or for specific purposes- 1hey 1hey also market apparel with licensed college and professional team and league league logos- 1hey 1hey
sell a line of perform performance ance equipmen equipmentt under under the 2IL 2IL $rand name%
including sport $alls% timepieces% eyewear% skates% $ats% gloves% and other equipment designed for sports activitiesactivities- 1hey also have agreements agreements for licensees to produce and sell 2IL $rand swimwear% swimwear% cycling apparel% apparel% maternity maternity e6ercise wear% children7s children7s clothing% clothing% school supplies% timepieces% and electronic electronic media devices- 1hey also sell small amounts of various plastic products to other manufacturers through our whol wholly ly*o *own wned ed su$s su$sid idia iary ry%% 2IL 2IL I@M% I@M% IncInc- and and plas plasti ticc in"e in"ect cted ed and and meta metall prod produc ucts ts to othe other r manufacturers through our wholly*owned su$sidiary,+I! 2ike aims at giving givin g high value% fairly f airly priced products to its customers- Its price range vary var y for different categories of products and also vary in different countries ,B'! 2ike sell their products primarily through a com$ination of retail accounts% independent distri$utors% licensees and su$sidiaries in a$out ; countries- For e-gIn United States% it operates 2IL1:2 shoe and sportswear stores% and 2IL :omen shops In urope% the distri$ution channel is centrali3ed- uropean Distri$ution !enter (D!) receives 2ike products from all over the th e world / serves retail store across a cross urope In India% the distri$ution distri$ution network of 2ike India currently $oasts of eight distri$utors% distri$utors% ; e6clusive e6clusive 2ike outlets% 5 multi*$rand outlets and ; speciality doors across ma"or cities- @owever% the e6clusive distri$ution and retailing channel for the $rand in India is Sierra Croup76
,+M1I2 1he company has used $oth sports marketing and advertising to promote and $uild the $randS,+1S M'+L1I2C From From the $eginnin $eginning% g% 2ike has used used athlete athletess to promote promote the 2ike 2ike $rand$rand- During During the early early years% the athletes athletes were part of a grassroots strategy% strategy% promoting 2ike $y telling their teammates teammates and friends a$out their great shoesshoes- Bater% Bater% 2ike started started paying athletes athletes to wear 2ike shoesshoes- 1his was part part of the pyramid of influence marketing strategy% which 2ike $elieved characteri3ed the athletic footwear industr y- 't the top of the pyramid was a small group of serious athletes% who 2ike $elieved $elieved set the trend for the whole marketmarket- If 2ike could esta$lish esta$lish a strong reputation with the serious athlete athlete group% this reputation would trickle down to the other segments (Kweekend "ocks# and Kstreet users#) lower down in the pyramid who were responsi$le for generating larger sales volume 2ike recruited athletes who not only could win $ut who had strong personalities and could stir up emotion to create lasting ties with the consumer- 2ike used the athletes throughout their career and tried to present them as real people% to let the consumers consumers feel that they knew them- 2ike wanted to Kwin the heart of the consumer as well as their feet-#
'thle 'thlete te endor endorse seme ments nts and spo sport rtss marke marketi ting ng work workss well well for many many of 2ike7 2ike7ss categ categori ories% es% it is not appropri appropriate ate for all of themthem- For e6ample% e6ample% the fitness fitness segment% segment% which which includes includes "oggers% "oggers% hikers hikers and aero$ics% is less focused on top performance% and su$sequently sports heroes are not as heavily relied upon as endorsers of the shoesshoes- Furthermore% Furthermore% the 2ike $rand personality personality has to speak to $oth men and women% women% who differ in their reasons for participating participating in fitness activitiesactivities- Men see e6ercise as a way to get stronger or live longer% while women have $roader o$"ectives 0 they want to get fit% $ut sports and fitness also means empowerment and self*esteem 2ike has also e6perienced unique challenges in international markets- Clo$al stars% such as Michael ?ordan and 1iger :oods are used to convey 2ike7s heritage of authentic athletic performance% while local local endorsers endorsers are used to connect connect with the relevan relevantt local local market market segmentssegments- 1o this end% 2ike has launched a glo$al event*marketing division whose mission has $een to create specific athletic events designed to raise raise awareness awareness of the 2ike 2ike $rand $rand at a more grassroots grassroots level-
77
1he result was was a powerful powerful
message communicating 2ike7s authenticity% $rand values and mystique to overseas consumers on a local level'D9+1ISI2C 2ike7s innovative advertising has played a crucial cr ucial role in $uilding the $rand identity- 1he ads have $een designed to communicate 2ike7s performance leadership to consumers- 1he company had developed close relationships with athletes% and it didn7t want to talk to them in any phony or manipulative way 2ike was o$sessed o$s essed with authenticity% in terms of o f $oth the product and the communication- 'nd they had a sense of what was cool-# 1herefore% 1herefore% when 2ike $egan to advertise% the company wanted wanted to talk to the athletes athletes in a way that respected their intelligence% intelligence% time% time% and knowledge of sports- 1he ads featured the athletes athletes sharing their thoughts and feelings feelings a$out their sport% in an open and honest way that esta$lished an emotiona emotionall tie with with the consume consumerr- 1he ads linked linked the consumers consumers to the 2ike 2ike $rand through through the emotions of sports and fitness 0 competition% determination% achievement% fun% even the spiritual rewards of participating participating in sports and fitness activitiesactivities- 1his emotional emotional tie with the consumer consumer is the $asis of a long*standing long*standing relationship relationship with the 2ike $rand% which was essential in the highly competitive footwear market- 2ike has always $een innovative in the product area% they wanted to $e innovative in advertising too- 1his meant taking risks with new advertising concepts- 2ike uses advertising to complement sports marketing and to $uild the glo$al $rand,U2!@BI2 2ike ***** N?ust do itN ****- 1he punch p unch line communicates that using 2ike can improve your performance $y enhancing the self*confidenceself *confidence1his punch line has helped 2ike to carry the US, along with it% So that consumers are a$le to differentiate differentiate it from the same need fulfilling fulfilling products- It is the voice of the $rand% which primarily primarily gives out the minimum momentum% thrust or impetus to push the $rand in the mind of the customer- @ence% this punch line is considered as the Kth ,7 of the Marketing mi6 of 2ike#S'BS '2D M'+L1I2C !ompany e6perience moderate fluctuations in aggregate sales volume during the year- @owever% the mi6 of product sales may vary considera$ly from time to time as a result of changes in seasonal and geograph geographic ic demand demand for particul particular ar types types of footwea footwear% r% apparel% apparel% and equipme equipmentnt- &ecause &ecause 2IL is a consumer products company% the relative popularity of various sports and fitness activities and changing 78
design trends affect the demand for its products- So% they must therefore respond to trends and shifts in consumer preferences $y ad"usting the mi6 of e6isting product offerings% developing new products% styles and categories% and influencing influencing sports and fitness preferences through aggressive marketing- 1his is a continuing risk- Failure to timely and adequately respond could have a material adverse affect on our sales and profita$ilityI21C+'1D I21C+'1D M'+L+1I2C M' +L+1I2C !MMU2I!'1 !MMU 2I!'1I2 I2 2ike7s a$ility to coordinate integrated marketing communication that really connects with customers c ustomers is outstanding- For e6ample% the KSwoosh# is so familiar that the name no longer needs to appear along with it- 1he company :e$ site is updated constantly% announcing new products and offering more sales opportunities for the company- :ith features such as three*dimensional product views% a giftPproduct finder% 2ike customi3ation tools and the 2ike 1echBa$% 2ike is utili3ing its Internet channel to the fullest 2ike strategically coordinates its television and print ads% sponsorship% :e$ :e$ site% an G num$er% $ill$oards% and other media to form an effective mi6 of communications- 1he athletes who deliver its message are a ma"or factor-' num$er of famous athletes who promotes 2ike are $asket$all players Michael Michael ?ordan /
2olan 2olan +yan +yan %tennis %tennis players players ?ohn Mcnore Mcnore and 'ndre 'ndre 'gassi'gassi-%% foot$all foot$all7s 7s Deion Deion
Sanders% track stars !arl Bewis and 'l$erto Sala3ar% and $asket$all players !harle &arkley and Scottie ,ippen- 1he young 1iger :oods has a 5 million contract with 2ike- 1he charisma% talent% e6pertise% and personality of such athletes athletes deliver 2ike7s 2ike7s message- 'ccording 'ccording to its :e$ site- 2ike e6its to $e the $est sports and Fitness !ompany in the world- :e are here to inspire ins pire and motivate the athlete in all of us and advocate the love of sports- :e live in the heart of sports and the athletes who play them'nd 2ike is e6panding its total market with integrated marketing communication- It is founder of ,-B-'-A B-'-A-- (,artic (,articipat ipatee in the Bives Bives of 'm 'meri erica7 ca7ss Aouth)% uth)% a multim multimilli illion*do on*dollar llar program program to promote promote healthy% active lifestyle among young people- 1here is also 2iketown stores feature $asket$all courts where customers can try out shoes% multiscreen televisions to display 2ike promotions% and appeal autographed $y 2ike athletes:ith :ith the growing popularity of the :2&'% women7s women7s soccer% and such prominent prominent female lympians lympians as Marion ?ones- 1he interest in women7s sports and fitness is at an all*time high- 2ike has already seen the positive impact of this women7s movement through such successful initiatives as Kshop*in*shop# Kshop*in*shop # concepts in women7s sections of U-S- department stores% women7s retails in ?apan and women7s focused :e$ site sales in @ong Long#- :hen the 2ike was launched ;G years ago% a mere one in school aged 79
girls were involved in sports- 1oday that num$er has "umped to one in five and 2ike is at the forefront in sponsorship and involvement in supporting women in sports 2IL7S 2BI2 &USI2SS &USI2SS (&randing across an online network) !@'BB2C 1arget different online audiences around the world% with different products% while maintaining core $rand identity in a network netwo rk of sites- 6tend the $rand e6perience from a second seco nd 19*spot 19*spot to something thatOs much deeperS1+2C1@ 2ike has a tradition of strong graphic identity% enormous $rand awareness- 1hey are the undisputed heavyweight champions of $randing- 1hey admit theyOre not in the apparel $usiness8 theyOre in the image $usiness- From 1iger :oods to Michael ?ordan% 2ike surrounds su rrounds itself with winnerswinn ers- 1heir print and 19 ads are legendary for their sophistication% wit and e6ecution- In a sense they strive for something close to perfection in crafting a message thatOs irresisti$leirresis ti$le' 21:+L F 1'+C1D MI!+ SI1S Unlike its rival companies% 2ike presents itself to many different audiences in different ways- ItOs a marketi marketing ng strategy strategy $orn from a soph sophist isticat icated ed understa understandin nding g of how people people respond respond to images images of lifestylelifestyle- :hereas most companies develop products for an e6isting market% 2ike tries equally to create the image first and then respond to the market that emerges&ut devising a tactic to pursue niche markets is something not solved with a one*si3e*fits*all design approach- If your $usiness were going after myriad audiences% it would $e nearly impossi$le to satisfy the needs of all customers customers under one um$rella um$rella mega*site- 1he we$ is not a mass marketing marketing engine- ItOs a place to $egin one*to*one conversations with your customers- Male street $asket$all players are not likely to identify with the same site content as female tennis players- ach 2ike product has a particular particular group of potential athletes in mind- ach 2ike site goes after those target groups% first $eginning with the country% then the sport% i-e- 2ikeColf-com% 2ikeColf-com% then with marketing content and products- Using similar structure% color% grid and logo treatment% 2ike has created a cohesive identity across the network% $ut with relevant individuality to the target audience80
1@ S:S@ +M'I2S 1@ S'M 1hough it is only a$out years old8 there are few other sym$ols more recogni3a$le around the world than the 2ike Swoosh- Its form is simple and swift- ItOs meaning $uilt masterfully over the years with $illions of dollars of products% advertisements and research- Bike a famous signature% it has earned a unique right to identify something as special V whether itOs a pair of running shorts or a For such an elegant shape% the Swoosh carries a lot of weight- It is not a logo that is dressed up in lot of colours% showing up mostly in $lack or white- 2or does the logo change often% unlike the stylistically driven 'lfred ''- Lnopf dog- 1hat itOs strengthstrength- Leeping the 2ike Swoosh conservative conservative and consistent allows it to $ecome a unifying device across channels such as 19% print or :e$% which tend to $e anything $ut thatSuch an approach gives the logo a status nearly approaching reverence $ut with versatility- 1his has $een used to great effect in many 2ike 19 spots- 1he Swoosh can $e at once seen as a sym$ol of ultra*cool punctuating the end of- r it can $e seen as deadpan funny when it appears after Bance 'rmstrong has resuscitated a fallen elephantn the :e$% 2ike uses its logo small and usually in the upper*left or lower right corner of their pages V quiet $ut confidant- &ut the Swoosh is a$out the only thing stays constantItOs not unusual for 2ike to completely gut its 2ike1own stores for a new look every 5G months- If their stores are that mallea$le% imagine the amount of change to their sites- +egardless of this constant change% the Swoosh will always remain the same' !2SIS121 S1+U!1U+ 1o em$ark on a strategy of creating as many su$*sites as 2ike does requires more than a great logo to succeed- It requires a strong graphic identity and skill- 2ike is adept at not only sniffing out popular cultural trends and desires $ut creating them as well- 'nd to engage itOs multifaceted audience to its many lifestyle images V such as N&allersN or Nveryday 'thletesN V 2ike has turned to the :e$ and $egun to create fine*tuned fine* tuned micro sites1he content on each site is unique and typically $athed in widely diverse color schemes- 1o anchor the designs% 2ike keeps most pages neatly framed with gray $ars holding similar elements like teasers to new sneakers or contests- ,ages are designed with a modular approach in mind allowing elements elements to $e
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mi6ed and matched- Such structural cues can also provide an easy out for the confused or disinterested user!US1MI'1I2 2 :& 2ikeOs site offers us an interesting idea when it comes to designing an online identity V make the site visitor the hero- DonOt "ust shower them with unearned praise% challenge them to learn% provide them with the tools and information to decide and act for themselves1his can $e as simple as adding some customi3a$le elements or more challenging such as letting them re*edit a famous commercial- 'llow users to reveal whatOs important to them and why- 1he act of opening a dialogue is sometimes reward enough- 2ike takes our ideas of $eauty% grace% speed or se6 and tells them $ack to us in their own way- &ut if 2ike were to simply plaster these sym$ols on a we$ page% they would remain merely a$stractions and pretty $oring 2ikeOs real design skill is making these ideas represent some greater concept% which is powered $y the emotional and intellectual stock weOre willing to $ring to it- @ow do they do thatR &y using design% sym$olism and coherence to stir up the most seductive idea to date* that thereOs a hero within you1@ 9'BU 9'BU !@'I2. !@ 'I2. 1he value chain of 2ike starts with manufacturing of its products in locations where it could take the advantage advantage of low manufacturing manufacturing cost- 'fter 'fter that value is added at every stage from its manufacturing to its deliverydelivery- 1hus% the amount of value delivered to the market place is dependent on the cost of 2ike7s 2ike7s raw materials% its a$ility to deliver products efficiently efficiently to retail outlets% the effectiveness effectiveness of its research and development% and many other activities affect the overall quality of the goods and services the company can provide to its customers- ven the qualities of the ads for 2ike are important% since the image of the product for users is largely $y the ads 2IL I2 U2I1D S1' S1'1S M'+L1 During fiscal ;% sales in the United States accounted for appro6imately = percent of total revenues% compared to percent in fiscal ;; and = percent in fiscal ;5- 2ike sell to appro6imately 5G% retail accounts in the United States- 1he 2IL $rand domestic retail account $ase includes a mi6 of footwear footwear stores% sporting goods stores% athletic specialty stores% department stores% skate% tennis and golf shops% and other retail accounts- During fiscal year ;% our three largest customers accounted for appro6imately ;H percent of 2IL $rand sales in the United States e6cluding sales from 2IL Colf and 82
&auer 2IL @ockey% and ;= percent of total sales in the United States- 1hey make su$stantial use of our Kfutures# ordering program% which allows retailers to order five to si6 months in advance of delivery with the commitment commitment that percent of their orders will $e delivered within a set time period at a fi6ed price- In fiscal year ;% 5 percent of our U-S- footwear shipments (e6cluding !ole @aan% &auer% @urley and 2IL Colf) were made under the futures program% compared to ; percent in fiscal ;; and GE percent in fiscal ;5- In fiscal ;% EH percent of our U-S- apparel shipments were made under the futures program% compared to E percent in fiscal ;;% and EH percent in ;5- 1hey utili3e 5 2IL sales offices to solicit sales in the United States- 1hey also utili3e 55 independent sales represen representati tatives ves to sell special specialty ty product productss for golf% golf% cycling cycling%% water water sports sports and outdoor outdoor activit activitiesies- In addition% they operate the following retail outlets in the United StatesM'?+ !M,1I1+S I2 US' 'didas*Salomon 'C . ?esse wens and Muhammad 'li $roke $arriers and records in adidas athletic shoes- 1he heart of the adidas Salomon ,roduct line is athletic shoes% including tennis% running% and $asket$all% $ut the three stripe logo appears on apparel and other "ock type accoutrementsaccoutrements- &ankruptcy once had adidas*Salomon adidas*Salomon on the ropes% $ut it made a come$ack $y shifting production to 'sia and $eefing up its marketing $udget1he 4 ; maker of sporting goods world wide% $ehind 2IL% adidad*Salomon owns sponsorship deals with popular US foot$all and $asket$all stars% as well as the 2ew Aork Aankees- Its purchase of Salomon% the French maker of ski and golf gear company into the equipment arena+ee$ok International Btd-. +ee$ok International feels comforta$le stepping out onto any surface- 1he company has long $een at home in sporting arenas and is the 4 ; US maker of athletic shoes% $ehind 2ike- In addition to +ee$ok sportwear and accessories% +ee$ok sports the Creg 2orman line of men7s casual wear% +ockport walking and casual shoes% +alph Bauren and ,olo dress and athletic shoes% and :ee$ok ee$ok shoes for small fries- It runs more than ; retail retail storesstores- +ee$ok +ee$ok still still spon sponsors sors some sports sports stars stars ('llen ('llen Iverson% Iverson% 9enues 9enues :illiams)% $ut in yet another marketing maneuver% the company is taking strides to $ecome more fashiona$le- ! ,aul Fireman and his wife own a$out ;W of the companyFIB' US'% Inc- .
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'fter tripping over a few hurdles% Fila is feeling $etter- Initially Initially earning a reputation reputation for its high design and style in athletic shoes and sportwear% Fila ran down its fashiona$le image in liew of a hodgepodge of athletic endorsements- 'fter selling off smaller parcels of its athletic division% in ; Fila7s owner% +!S Media Croup (Formly @olding di ,arteicipa3ion)% threw in the towel n sporting goods and crossed the finish line on a sales deal with newly*created Sport &rands International ('ssociated with private investment fund manager !er$erus)- 1he resulting Fila remains intact and intends to grow into its role in the sportwears arenaS1+'1CIS F 2IL B: !S1 M'2UF'!1U+I2C S1+'1CA 2ike products are manufactured in factories owned and operated $y other companies- 1his outsourcing helps the 2ike to take the advantage advantage of low manufacturing manufacturing cost- - Its ma"or manufacturing manufacturing countries countries includes. !hina% Indonesia% 9ietnam% 1hailand% Italy %1aiwan %South Lorea For eg In fiscal ;% appro6imately 5 percent of total 2IL $rand apparel production for sale to the United States market was manufactured in the United States $y independent contract manufacturers% most of which are located in the southern states- 1he remainder was manufactured $y independent contractors located in countries,+DU!1 +S'+!@ '2D D9B,M21 1heir research and development efforts are a key factor in their past and future success- 1echnical innovation in the design of footwear% apparel% and athletic equipment receive continued emphasis as 2IL strives to produce produ ce products that reduce or eliminate in"ury% aid athletic performance and an d ma6imi3e comf comfort ort-- In addit additio ion n to 2IL 2IL7s 7s own own staff staff of speci special alist istss in the areas areas of $iome $iomecha chanic nics% s% e6erc e6ercise ise physiology% engineering% industrial design and related fields% they also utili3e research committees and advisory $oards made up of athletes% coaches% trainers% equipment managers% orthopedists% podiatrists and and other other e6pert e6pertss who who consu consult lt with with us and and revie review w design designs% s% mate materia rials ls and and conce concepts pts for produ product ct improvement- mployee athletes wear*test and evaluate products during the design and development processSCM21'1I2 2ike has segmented its market on o n the $asis of the following varia$les.
84
b Demographics 'ge .* Aouth
5G*=
lder
Cender .* Male
Female
b ,sychographics. lifestyle 'thletic utdoor 2ike has designed and marketed marke ted athletic ath letic shoes for each different sport% sp ort% often ofte n further furth er segmenting with speciali3ed models within each sport (e-g-% N'ir ?ordanN $asket$all shoes% and additional $asket$all models called NForce%N represented $y !harles &arkley and David +o$inson% and NFlight%N represented $y Scottie ,ippin)TARGETING
Initially% 2ike focused more on the male consumer and was dedicated to serious athletes- &ut% with the growing popularity of female sports apparel and equipment segment % it has widen its target target market- It has moved into new sports areas away from the running heritage- 's a result of which% it7s target audience has shifted from more masculine towards female and even third agersPOSITIONING
2ike7s ,unch line K?ust do it# has ena$led the company to create the image of an aggressive% action*oriented company- 'mateur as well as professional athletes perceive 2ike as producing high*quality shoes that help athletes perform to their ma6imum potential- 1hey were firmly rooted as performance shoes with innovative designs and technology- 'lso 2ike7s num$er one position was due in part to its product positioningpositionin g'RAN!ING 85
S8,+$. a# a +rand% 1he most important aspect of a $randOs name and sym$ol is that it silently
speaks everything a$out the company or product- 2ike is the $est e6ample of how a sym$ol is $est utili3ed and e6ploited and its strong association with the products- 2ike is sym$oli3ed s ym$oli3ed $y a tick mark or something which is always right- 1he $usiness card of a 2ike employee has a tick on it instead of the company name and still people make out the company where the person is employed "ust $y looking at the tick 'rand Eten#i$n% 2ike has turned sneakers into something more 0 athletic tools- ver time%
many consumers consumers have developed a mindset a$out the difference $etween 2ike sneakers and any other $rand of sneakers- 2ow% many years later% 2ike is e6ploring line e6tensions into other types of clothing and footwear to $olster its $rand against changing demographics and lifestyles 'rand Narrati$n% 2ike do not yell at the consumer to $uy% $uy% $uy- 1hey instead engage them
in a narrat narrativ ivee that that makes makes the consum consumer er want want to $uy $ecaus $ecausee they they ident identify ify with with narra narrati tive ve components- 2ike7s $rand narrative prescri$es the consumer to get out and e6ercise% K?ust Do it#&uying 2ike product is almost an after thoughtA!"ERTISING STRATEGY% STRATEGY%
2ike traditionally uses a highly visual format for its advertisements- 1hese images imag es capitali3e on consumer emotion and attempt to link personal value to the wide array of 2ike products'dvertising 'dvertising is never "ust a$out 2ike% the $rand- It is carefully constructed constructed to draw in consumersIn one recent campaign% famous 2ike*sponsored athletes showed their wounds from competition% including scars% missing% fingers% and knocked*out teeth- &y doing so% 2ike connected its own products with the physical and emotional side of athletic competition- &esides this% the 2ike swoosh sym$ol is a highly recogni3ed recogni3ed trademark that elicits these desired effects effects $ecause it is an episode encoded in the consumers consumers $rain- 1he athletes who deliver its message are a ma"or factor responsi$le for promotion of the $rand- For e6ample% Michael ?ordan is generally considered to $e the $est $asket$all player in the history of o f the game- 't a time when 2ike profits were sinking% Lnight selected ?ordan to re*esta$lish the company7s company7s image- 'ppro6imately 'ppro6imately ads later% ?ordan was the most popular athlete in the country% according to 2ew Aork $ased marketing valuations' num$ num$er er of other other famous famous athl athlete etess have have elic elicit ited ed a treme tremend ndous ous respon response se from from custo custome mersrsIncludin Including g tennis tennis players players ?ohn Mcnore Mcnore and 'ndre 'ndre 'gassi 'gassi%% $asket$a $asket$all ll player player 2olan 2olan +yan-% +yan-% foot$all7s Deion Sanders% track stars !arl Bewis and 'l$erto Sala3ar% and $asket$all players !harle &arkley and Scottie ,ippen- 1he young 1iger :oods has a 5 million contract with 86
2ike- 1he charisma% talent% e6pertise% and personality of such athletes deliver 2ike7s message 2ike has also e6panded its marketing methods $y teaming with M19; to produce
street
$asket$all seriesGAINING PO@ER FROM COM'INING STRATEGIES
:ith the $enefits of improved performance% linked to aspiration of $ecoming a top athelete at vario various us targ target et user user group groupss % toget together her with with emot emotion ion in adver adverti tisin sing g mate materia rials ls and athle athlete te endorsement% 2ike have enhanced its position in the footwear industryNIKE IN EUROPE NIKES EUROPEAN HISTORY
1he same year that 2ike overtook 'didas as the num$er one athletic shoe company in the U-S- ** 5G ** ,hil Lnight dispatched five employees to urope to esta$lish a presence for the U-S- shoe manufacturer there- &ecause of its favora$le ta6 and $usiness operation laws% the group set up an office office in 'm 'msterdam sterdam and $egan its mission mission to esta$lish esta$lish the 2ike name and $rand- 1hough 2ike had succeeded in $reaking 'didas7 dominance in the U-S-% taking over as the leader in 'didas7 home arena would $e a greater challengeINITIA( GRO@TH
In the early 5G7s% the most popular sports in urope were soccer% track and field% and tennis- If 2ike wanted to have a significant presence in urope% the company would have to esta$lish its name in each of these sports in each of urope7s four primary markets ** Cermany% France% ngland and Italy ** which accounted for the $ulk of the uropean sports shoe and apparel sales&esides these difficulties with their marketing intermediaries% 2ike faced formida$le competition in urope- 'didas% the Cerman shoe company% company% dominated the uropean sports market- 1o 1ogether gether with ,uma ** a spin*off of 'didas ** the two companies controlled over HW of urope7s athletic shoee and apparel sho apparel marketmarket-
For For decade decades% s% the two comp compani anies es had develop developed ed the the grassr grassroot ootss
allegiance of local sports teams% particularly soccer% track and field% tennis% and rug$yrug$y- &oth had endorsement contracts with top uropean athletes in each of these sports and sponsored many local teams in cities and towns across urope- 'didas% in particular% was respected for the quality of its shoes and had earned the reputation as the uropean performance $rand- For any company
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to esta$lish a presence in Cermany ** urope7s largest market ** in the face of these two companies was considered nearly impossi$leAears% ears% 2ike struggled struggled to $uild its presence in urope- &y the end of 5GH% 2ike7s 2ike7s uropean uropean revenues had grown to 5 million% representing W of the uropean athletic shoe market and a growing growing percentag percentagee of 2ike7s 2ike7s revenuesrevenues-
!ompare !ompared d to its U-SU-S- positio position% n% however% however% 2ike7s 2ike7s
penetration of the uropean market was comparatively insignificant-
,erhaps even more
distur$ing to 2ike was its ina$ility to control the growth of its $rand- In most countries% the 2ike distr distri$ i$uto utorr who who contro controll lled ed marke marketi ting ng and adver adverti tisin sing g right rightss were were not necess necessari arily ly highly highly motivated motivated to sell 2ike7s2ike7s- 1o overcome overcome this limitation ** $ut still maintain its quality image image ** 2ike restricted its product line to primarily high*end% higher priced shoes- In doing so% the company forfeited forfeited volume and hence market market share- 1hough the company company also sold some low* end% relatively ine6pensive ine6pensive shoes% it had no product offerings offerings for the e6pansive Nmiddle market-N 's a result% many uropean consumers saw 2ike as an aggressive% e6pensive 'merican $rand&ecause 2ike distri$utors controlled advertising in their local markets% each continued to develop their their own interpret interpretatio ation n of the 2ike 2ike $rand $rand and identity identity programsprograms- :hile :hile 2ike producti productively vely em$arked on the K?ust Do It# um$rella campaign in the U-S-% Crey 'dvertising ** the agency that managed the 2ike account in five countries ** was developing separate% and not necessarily reinforcing% reinforcing% ad campaigns campaigns in each uropean countrycountry- 2ike also did not have the same means of displaying their shoes and retailing them to customers as in the U-S- ** athletic shoe specialty stores did not really e6ist in uropeIn the Cerman market and% to a lesser e6tent% the French market% the result was that 2ike was pushing product into the marketplace marke tplace rather than creating demand from the th e $ottom $ ottom up% resulting r esulting in freque frequent nt close close*ou *outt sales sales with with disco discount untss of up to WW- 'fter fter a coupl couplee of season seasons% s% the the marketplace was saturated with close*out product% and forecasting pro$lems led 2ike to Kchoke in inventory# in 5% according to Martin !oles% 9ice ,resident and Ceneral Manager for urope- !oles took over as CM of urope "ust as 2ike7s sales took a downturn after peaking at 5-5 $illion in 5:ithout question% urope urope represented a tremendous growth opportunity for 2ike- Moreover% as a general rule% uropeans were slower to em$race sneakers as off*court shoes and were more likely to wear fine leather leather shoes even in casual settings settings-- ither ither on or off the court% court% uropeans uropeans "ust needed fewer athletic shoes- 1he image of athletic shoes was changing% however% and sneakers 88
were no longer a dead giveaway that a person was more likely than not to $e an 'merican touristAouths Aouths especially seemed captivated $y the K'merican# image of 2ike and +ee$ok- 's a result% some progress had $een made in urope- 'didas 'didas ** with over 5- $illion in revenues ** still had more more than dou$le dou$le the market share share of 2ike 2ike in uropeurope- 1hough 1hough 'didas 'didas still still dominated dominated the uropean market% 2ike made significant inroads% and the Cerman giant and its counterpart% ,uma% had lost market share to 2ike and +ee$ok1o reali3e its goal of $eing the num$er one sport and fitness company in the world% 2ike had to dominate urope- Its two main competitors% 'didas and +ee$ok% posed very different challenges&uilding on the success of its K?ust Do It# campaign in the U-S-% 2ike attempted to introduce the tag line into its uropean uropean advertisi advertising ng in the Spring Spring of 55- 2ike 2ike hoped that this campaign campaign would successfully communicate 2ike7s core values of authenticity% performance and athletics% and help esta$li esta$lish sh an emotional emotional connection connection with uropea uropean n consume consumers rs through through sports- 2ike allocated allocated G*5 million to uropean uropean advertising and promotionpromotion- Four commercials commercials showing professional athletes engaged in competitive sports were translated and shown in ; local marke marketsts-
1hee u 1h urop ropean ean consum consumers ers%% howeve however% r% found found them them inti intimi mida datin ting% g% aggres aggressiv sivee and and
unrea unreacha cha$le $le-- 1o reach reach its its growt growth h goals goals in u urop rope% e% 2ike 2ike needed needed to find find a way way to change change consumers7 perceptions of 2ike as an e6pensive% aggressive 'merican $randFOCUSING IN EUROPE
1he first thing !oles did to turn around urope was to gather the uropean management team% which included the functional heads at the uropean regional headquarters in the 2etherlands% plus the Ceneral Managers from each of the 2ike*owned uropean countries- 1he group discussed what had gone wrong% without hiding $ehind reasons like the recession% $ad weather% and the failure to catch on with $rown shoes when they hit the market1he team e6panded the set of reasons for the sluggishness in the uropean market- 2ike had focused on volume sales of components like 1*shirts% fleece and shorts rather than their technical and and perfor performa mance nce orien oriente ted d produc productt- ,erfo ,erform rmanc ancee was was what what diff differe erent ntiat iated ed 2ike 2ike from from their their competition% $ut 2ike had not used performance in their positioning- Instead% the company had $een following closely what +ee$ok and 'didas were doing% and had tried to fight the competition instead of having confidence in their own $rand- perating each country as an independent unit had led to fragmented efforts89
EUROPEAN MARKET CON!ITION
uropean environmental conditions have not changed much since 2ike entered the market in 5G- 1he li$eral $usiness environment has remained- 1he region is regulated regulated with strong social laws- :hile some smaller countries en"oy more favora$le ta6 laws% conditions in general have $een relatively sta$le% even through $ull and $ear markets- 1he region has strong intellectual property protection and contract enforcement laws- 1his makes the uropean market a highly favora$le place for 2ike to enter in light of the distinctiveness in language and some cultural differences- Cermany% France% Italy% and Spain accounted for the $ulk of the uropean sports shoe and apparel sales!urrency fluctuations in overseas markets are inevita$le- 2ike7s profit margin was hurt $y the strong U-S- dollar against uropean currencies in the 57sCOMPETITION Adida# and Pu,a
&esides the difficulties with its marketing intermediaries% 2ike faced formida$le competition in urope- 'didas% the Cerman shoe company% dominated the uropean sports market- 1ogether with ,uma% a spin*off of 'didas% the two companies controlled over HW of urope7s athletic shoee and sho and appare apparell marke markett- For For decad decades% es% the two two comp compan anies ies had devel develope oped d the the grassr grassroot ootss allegiance of local sports teams8 in particular% soccer% track and field% tennis% and rug$y- 1hey $oth had endorsements contracts with top uropean athletes in each of these sports and sponsored many local teams in cities and towns across urope- 'didas% 'didas% in particular% was respected for the quality of its shoes and had earned the reputation as the uropean performance $randRee+$7
+ee$ok +ee$ok sold its shoes shoes direct direct to retaile retailers rs through through sevente seventeen en independ independent ent sales sales organi3 organi3atio ationsns+ee$ok followed a limited distri$ution strategy- Its shoes were sold only through specialty athletic retailers% sporting goods stores% and department stores- :ith the e6ception of &ritain% Sweden% and Denmark% +ee$ok had relatively little success in urope!ISTRI'UTION CHANNE( 90
&efore 5Gs% 2ike distri$ution distri$ution strategy of sports footwear / clothing in urope * work through distri$utors / select local partners in each country- In 5Gs% due to market growth% 2ike decided to $uy up its distri$utors / converted them into wholly owned su$sidiaries &ut each distri$utor operated autonomously% each local warehouse had its own logistics infrastructure / its own sales force% force% ordered ordered ,roduct ,roduct individ individuall ually y / controll controlled ed their their own stockstock- Distri$ Distri$utio ution n and product product delivery to the customer also requires a glo$al level focus% as competitors e6ist glo$ally and in order order to compete compete effecti effectively vely%% your product product mus mustt $e availa$l availa$lee within within the same same competi competitive tive markets2ike decided to reduce reduce no- of its its warehouses warehouses in Centra.iing Eur$9ean di#tri+uti$n% In 5;% 2ike urope from ;; to "ust one in &elgium&elgium- 1he uropean Distri$ution !enter (D!) (D!) receives- 2ike products from all over the th e world / serves retail store across a cross uropeSEGMENTING
ne of the pro$lems 2ike had in urope was that only a limited part of the company7s product line was offered to retailers in each country- ach country would make a different selection $ased on their perceptions of the local consumer and the si3e of their warehouse% resulting in widely differing 2ike offerings across urope- 'n interesting case was the 'ir Ma6 &P:% a great running shoe that sold well in the UL and France- 1he shoe was not offered to the Cerman trade $ecause the Cerman team didn7t feel it was right for their marketplace- Interestingly enough% Foot Bocker% which had a glo$al account% was a$le to offer the 'ir Ma6 &P: in their Cerman stores% and it was the hottest selling shoe on the shelves- 1he perception that the Cerman consumer was different was "ust not correctTARGETING
2ike needed to start understanding that their consumers really were% and to look for similarities rather than differences that e6isted $etween countriescountries- uropean youth% which was 2ike7s 2ike7s target audience% were pro$a$ly more connected than people reali3ed8 kids in the U-L-% the 2ordic countries countries and Cermany Cermany listened to the same music% they loved the same sports% and they admired admired the same sports stars 2ike decided that they had to offer a complete product line to the whole uropean market- 1he product line was pared down to a common uropean line- ' centrali3ed distri$ution center was $uilt in &elgium to service the whole uropean market% replacing warehouses around urope91
' new ordering system was implemented $y tapping into 2ike7s U-S- computer system% to create not only uropean compati$ility $ut U-S- compati$ility as well1he goal was to give consumers the same e6perience of the 2ike $rand throughout uropeurope- 2ike would concentrate on the same categories around uropeVsoccer% running% $asket$all and tennis Vand the same age groups- 1he same $asic marketing message would $e used% although there was more latitude in locali3ing advertising copy% which was often difficult to translate across cultures- Finally% 2ike would focus on technology and performance- It was important $oth that the company delivered a product $enefit in everything they did% and that they e6plained the $enefit to the consumers- 1he F-I-1F-I-1- technologies in apparel% for e6ample% provided superior performance through throug h advanced materialsPOSITIONING% P$er4u. A##$iati$n# ith Ath.ete#
1o overcome the fashion image% 2ike started from the $ottom and developed the 2ike $rand in sports relevant to the uropean market% especially soccer- ' grassroots approach was needed to $uild credi$ility and convince consumers of the authenticity of the 2ike $rand% and 2ike got more actively involved as sponsor of soccer youth leagues% local clu$s and national teams- ne of the the even events ts that that 2ike 2ike spon sponso sore red d was was the the ,rem ,remie ierr !up% !up% an unde under* r*5= 5= u uro rope pean an socc soccer er tournament- 'nother was the 1our de France cycle raceIn many cases% 2ike could use their glo$al stars for category*specific advertising. for e6ample% Michael ?ordan was relevant to consumers around the world- @owever% 2ike also needed athletic endorsers who were locally relevant- Using local sports heroes was pro$lematic8 many of them were were unkno unknown wn outsi outside de their their hom homee countr country y% and and would would not $e effe effecti ctive ve in pan* pan*uro uropea pean n campaigns- 2ike wants to esta$lish itself as a perfect sports $rand 2ike was positioned as an authentic sports $rand with a track and fieldPrunning heritage8 in Cermany% @olland% France% Spain and Italy% 2ike was very much a fashion $rand% and that image had spilled over into Denmark- 1he different $rand perceptions had $een a result of different marketing strategiesCAMPAIGN
In the UL and the 2ordic 2ordic countries% countries% 2ike 2ike had focused focused on grassroots grassroots work% work% and had a strong strong presence at sports sp orts events and an d with athletes- In Cermany% on the other hand% marketing was almost 92
e6clusively advertisingVW of the marketing $udget was spent on 19% video% cinema and radio% and almost nothing on sports promotionpromotion- 2ike7s advertising advertising was a mi6 of U-S- campaigns and local work- In some of the campaigns% 2ike had come across as too aggressive- 1hey were too 'merican% and were pushing athletic competition too far for their uropean audienceMARKETING STRATEGY% STRATEGY%
'n important part of the new strategy in urope was to change the relationship with retailers 2ike wanted to grow the proportion of its $usiness with the larger% speciali3ed sports retailers% and shrink the proportion proportion of $usiness with smaller% smaller% mom mom and pop stores- 1he sports retail retail trade in urope was not as developed as that of the U-S-% $ut this was changing as people $egan to reali3e its potential- +etailers like ?D Sports in the U-L- and Stadium in Sweden used some sophist soph isticat icated ed merchan merchandisi dising ng concepts concepts%% and U-SU-S- chains chains like like Foot Bocker had esta$lis esta$lished hed a presence- 2ike also wanted wante d to move out of the transactional tr ansactional mode and an d start dealing with their the ir key accounts like $usiness partners- !oles descri$ed the new relationship. Instead of 2ike walking into the store and asking K:hat would you like to $uy todayR# the 2ike salesperson would say. @ere7s what we7re going to sell through your store this season% here are the product types% here7s how we7re going to merchandise the product types% here7s the marketing effort that7s going $ehind it% here7s the athlete that7s going to $e wearing that product $y this date% and here7s the new color product that we7re going to flow in $y the second half of the season:hat we come up with is a totally integrated marketing plan 2ike worked with their key accounts to help them understand concepts like multiple season sell selling ing (the (the introd introduct uctio ion n of produc productt throu througho ghout ut the year year rathe ratherr than than "ust "ust in two two season seasons)% s)% assortment planning (selecting product depending on the type of store)% and the Futures programIn 5% the Futures program was introduced introduced in urope8 the program asked the retailers to order the $ulk of their product si6 months in advance% and in return% promised them guaranteed delivery and a discount of *5W- Initially% the program did not go over well with retailers% especially in Cermany where retailers could $uy product from 'didas at any time- @owever% most of them saw the advantages once 2ike e6plained to the uropean retailers why they were using Futures and how it would guarantee availa$ility- Cermany was the e6ception% where it was a $attle $oth against an entrenched retailer $ase and sometimes against 2ike7s own staff% who didn7t $elieve in the concept themselves-
93
1he result of the increased coordination and the spreading of $est practices throughout urope has $een a stronger organi3ation- ,eople now feel as though they are part of a larger organi3ation% sharing the 2ike culture of teamwork% competitiveness competitiveness and honesty- 1hey 1hey are more confident as their competency increases8 they understand the $rand8 they understand how 2ike talks a$out profita$ility8 they can read an income statement8 and they are in control of the th e technologies tech nologies that 2ike usesKe8 Sue## Fat$r# and Critia. I##ue# Ke8 #ue## 4at$r# $4 Ni7e are% ne of a kind* It provides unique value to customers having its own lookP custom products- :e
know you* It knows as well as understand people7s storiesP understand athletes needs 'ccess* Its products are found everywhere e verywhere Design* It has recogni3a$le% respected logo% shoe and clothing aesthetics !onvenience* It has online shopping% worldwide retailers 2ike has successful growth colla$orating with other companies within sport and other fitness industry@aving Stylist features and innovative products which includes8 N Different colors and designs of products N It have different products one cannot fit otherN It has silent alarm% water proof products% and sleep monitoring of its products N It is having wireless syncing (android device)
Financial sustaina$ility of 2ike comprises of8 N Strong history of alliances as having strong partnership with 'pple- N It has high $udget in marketingN @aving a$ility to develop new and innovative products in house with minimal riskN 2ike was the first one in the market in terms of e6perience and 1echnology-
@aving successful $usiness growth in terms of internal and e6ternal analysis% market position% competitors% products and organi3ational structure1he success lean to three three things8 things8 Beadership Beadership%% people people and processe processess which which provide provide quality products timely (2ike-inc-% ;5=); 5=)Ke8 ritia. i##ue# ne main issue of 2ike corporation is it is leading and planning without proper management% the company is suffering from child hood la$orIt has negative media attention due to which it may lose reputation@as fault of poor factory conditions and environmental pro$lemsIt has $een $lamed of a$andoning sites94
1he 2ike products have $ecome equal with slave wage% they only pay worker with minimum wage from which they can only fulfill their $asic necessities% forced overtime and su$"ective a$useSuppliers are having overlapped and conflicting issues from diverse customers so can $e issue for 2ike outsourcing strategystrateg y- (:ilsey% (:ilsey% M-% / Bichtig% S-) Marketing StrategyRESU(TS
Measured as &rand Intent to ,urchase% 2ike is the leader in almost all age groups against $oth +ee$ok and 'didas 'didas (the e6ception e6ception $eing older women% where +ee$ok is on top)- 2ike considers 'didas its strongest competitor% competitor% $ut +ee$ok has also had some placement success with products such as the DM` shoe- Fila looks to $e fading% although @ilfiger and ,olo are new entrants focused on the fashion side- 2ike7s goal is to $ring Indian consumption to the same level as the other 'sian countries-
95
CHAPTER&0 !ATA ANA(YSIS AN! INTERPRE INTE RPRETA TATION TION
5- Do you like 2ike footwear productsR :hy or :hy notR
(a) (a) Aes ($) 2o
/he following results were observed .
a) GG-=W GG-=W peopl peoplee said said Aes $) 55-EW people said 2o
INTERPRETATION
There4$re it i# $+#er-ed that ,$#t $4 the re#9$ndent# .i7e NIKE 9r$dut#
96
;- Did you $uyed nike footwear productsR
(a) (a) Aes ($) 2o
/he following results were observed .
(a) ;W people said Aes Aes ($) GW people said 2o
INTERPRETATION
There4$re it i# $+#er-ed that ,$#t re#9$ndent# ha-e +u8ed Ni7e 4$$tear
97
- :hy do you $uy nike footwear productR (a) (a) @igh @igh qual quality ity ($) &rand &rand 1rendy 1rendy pursuer pursuer (c) (c) the therr
/he following results were observed .
(a) EW people said @igh Juality ($) E;W people people said &rand &rand 1rendy 1rendy pursuer pursuer (c) ;W people people said others others
INTERPRETATION
There4$re it i# $+#er-ed that ,$#t Pe$9.e +u8 Ni7e 4$$tear +eau#e O4 it# 'rand and Trend8 Tr end8 .$$7# .$ $7#
=- :hat type of sports do you likeR 98
(a) (a) Socce occer r ($) &aske &asket$ t$al alll (c) (c) +unn +unnin ing g (d) (d) the ther r
/he following results were observed .
a) ;GW people said Soccer $) =;W people said &asket$all &asket$ all c) 5HW people said +unning d) 5W people said others
INTERPRETATION
There4$re it i# $+#er-ed that 'a#7et+a.. i# the ,$#t .i7e.8 #9$rt?
- If you want to $uy a sports footwear% which one is your $est choiceR 99
(a) (a) 2ike 2ike ($) ($) +ee$ +ee$ok ok (c) (c) 'ddi 'ddida dass (d) (d) the thers rs
/he following results were observed .
a) ;W people said 2ike $) =-;W people said +ee$ok c) ;=-EW people said 'ddidas d) -;W people said others
INTERPRETATION
There4$re it i# $+#er-ed that Ree+$7 i# the ,$#t de,anded 4$$tear
E- :hat kind of nike products do you $uyR
(a) (a) Foot Footwe wear ar 100
($) ($) !lot !lothe hess (c) 'cce 'ccesso ssori ries es (d) (d) the ther r
/he following results were observed .
a) =GW people said Footwear $) =EW people said !lothes c) =W people said 'ccessories d) ;W people said thers
INTERPRETATION There4$re it i# $+#er-ed that ,$#t #a.ea+.e ite, $4 Ni7e i# F$$tear
H- Do you think prices of nike footwear is e6pensiveR
101
(a) (a) Aes ($ ) 2
/he following results were observed .
a) GW people said Footwear $) =;W people said !lothes
INTERPRETATION
There4$re it i# $+#er-ed that ,$#t 9e$9.e thin7 Ni7e 4$$tear i# E9en#i-e?
G- :here is the $est place to reach you with 2ike advertisementR
(a) 1elevisi levision on 102
($) 2ews 2ewspap paper er (c) (c) Maga Maga3i 3ine ne (d) Inter Internet net
/he following results were observed .
a) EGW people said Footwear $) GW people said !lothes c) 5W people said 'ccessories d) W people said thers
INTERPRETATION
There4$re it i# $+#er-ed that Te.e-i#i$n i# the ,$#t reaha+.e Mediu,
-@ow often do you $uy nike productsR
(a) (a) Dail Daily y ($) :eekly ekly (c) (c) Mo Mont nthl hly y 103
(d) Aearly arly
/he following results were observed .
a) W people said Daily $) W people said :eekly c) 5=W people said Monthly d) GW people p eople said Aearly
INTERPRETATION
There4$re it i# $+#er-ed that 9e$9.e +u8 Ni7e 9r$dut# $ne in a Year?
5- @ow many times do you watch nike 19 19 adverstisment in one monthR
(a) (a) tim times ($) 5* times times (c) (c) E*5 E*5 times times 104
(d) 55*5 55*5 time timess
/he following results were observed .
a) EW people said 1imes $) =W people said 5* 1imes c) EW people said E*5 1imes d) =W people said 55*5 1imes
INTERPRETATION
There4$re it i# $+#er-ed that 9e$9.e ha-ent athed Ni7e Ad-erti#,ent in a ,$nth?
CHAPTER&3 RESU(T > !ISCUSSION !ISCUSSI ON 2ike has $een creative since s ince the start- It has $een pushing pu shing the technological technolog ical $oundaries of innovation to offer its customers new products and also differentiate itself from its competitorsSomewhere in its evolution% 2ike also realised the importance of hi*tech gadgets in day*today lives105
So it started to com$ine new products with hi*tech solutions to give unconventional capa$ilities to a customer of sportswear 2ike was also quick to sei3e the opportunity offered $y $ y social media to engage with a wider customer $ase so much so that it is now a$le to link its new hi*tech gadgets to social media platforms- 1he power of such customer contact is phenomenal as a s it gives greater visi$ility visi$ ility in a single click% generates interactions among customers and gives the company an opportunity to collect info a$out customersO choices and preferences- It also gives endless chances for customer segmentation and product differentiation% the pillars of any marketing strategyMeasured as &rand Intent to ,urchase% 2ike is the leader in almost all age groups against $oth +ee$ok and 'didas (the e6ception $eing older women% where +ee$ok is on top)- 2ike considers 'didas its strongest competitor% $ut +ee$ok has also had some placement success with products such as the DM` shoe- Fila looks to $e fading% although @ilfiger and ,olo are new entrants focused on the fashion side- 2ike7s goal is to $ring Indian consumption to the same level as the other 'sian countries-
CHAPTER&2 SUGGESTION SUGGESTIO N > RECOMMEN!ATION
SUGGESTION Department stores are the prime pr ime sales and marketing channel for leather consumer goods. In addition, store decorations and product displays should e de signed to create a strong first impression. Seasonal promotion campaigns, like special discounts and ad!ertisements, could 106
e employed. Ne" lines of collections should e introduced for festi!als.
In addition to promotional acti!ities in shopping malls and department stores, discounts and T# commercials are considered effecti!e channels for promotion. It is ad!isale to pay attention to the affordaility of customers in different cities, "hile setting price points for different product categories. $ean"hile, leather shoes offer etter gro"th potential.
%opular materials used for leather consumer goods include o!ine skin, goat&kid&lam&sheep goat&kid&lam&sheep skin and crocodile skin. 'egarding colors, lack is y far most sought(after "ith dark ro"n in second place.
Due to their gro"ing spending po"er, the rising middle class should e the target of )ong *ong+s sellers of leather consumer goods. )ong *ong companies should put more emphasis on products for usiness use. In addition, it is useful to introduce appropriate designs that cater for the tastes of the middles class.
Doule lick -/ onsumer Email Study Octoer -/, the fourth of Doule(lick annual consumer email studies points to an increasing sophistication in consumer usage of email functionality and a corresponding comple0ity of purchasing eha!ior. The Spam crisis continues to affect consumer eha!ior online ut does not necessarily cloud consumer recepti!eness to legitimate marketers1 an o!er"helming ma2ority of online consumers recei!e offers y email and ha!e made a purchase online or offline as a result. onsumers are using a!ailale tools to limit spam and are employing operate email accounts for pur chasing, all in attempts to increase control and impro!e their email e0perience. 3orking "ith 4eyond Interacti!e and the N5O&&net source panel of 6, US consumers, polled 7,consumers !ia email from 8uly 9 ( :ugust;, -<. :ll respondents recruited use email&internet 7= times per "eek, "hich reflects the usage of the larger online population >6?@ of the 7A= online population according to Nielsen, -/B.There "as an eCual segmentation of men and "omen and the a!erage age "as ?-.<.This is the fourth of an annual series of consumer research studies and trending information "as deri!ed using the data from pre!ious pr e!ious years. The sample mirrored pre!ious studies and is reflecti!e of the online population as a "hole. *ey 5indings The ma2ority of consumers recei!e some kind of marketing email " ith special offers from retailers most common Sender recognition most impacts operates, "hile content rele!ance increases likeliness to purchase 5reCuency ascertain category, are !ery specific to the category of email ut !ary greatly from one consumer to the ne0t freCuency of permission ased email is clearly a great concern to consumers and has an impact on "hat they consider to e Spam. Email dri!es multi(channel purchases and has an immediate as "ell as a latent Nearly /?@ of consumers cite the line as the most important factor in opening an email.-/ 107
onsumer Email Study impact. It dri!es consumers most often to the online channel ut also results in retail and catalog sales. onsumers ha!e ecome sophisticated in their use of IS%( supplied tools to limits %am and in their usage of !arious email addresses to manage their !aried email acti!ities )ome and free email addresses are most often used for purchasing, "ithin email address specifically designated for that usage. $en and "omen ha!e radically different ideas of "hat spam is and different purchasing eha!ior related to Spam. 3omen are more recepti!e to promotions and discounts and correspondingly more interested in and tolerant of marketing emails than men. 'ecepti!eness to $arketer Emails. The !ast ma2ority >67@B of consumers recei!e some form of permission(ased email "ith ;<.-@ recei!ing special offers from online merchants, ;;.?@ recei!ing them from traditional retailers, and ?A.;@recei!ing them from catalogers. Other popular types of marketing emails included account statements&online ill payment information >recei!ed y ?6.A@ of respondentsB, tra!el emails >?9.9@B, coupons for groceries >?.@B, health >?7.7@B and household tips&recipes&crafts tips&recipes&crafts >?-.7@B. Of categories in "hich consumers do not currently recei!e e(mails, respondents are most interested in recei!ing grocery coupons >cited y --.7@B and household tips&recipes&crafts tips&recipes&crafts >79./@B.Other categories of strong interest "ere electronics and computer soft"are&hard"are, 79.A@ and apparel&shoes at7-.9@. %ermission(ased email also continues to e the preferred method of contact from the fa!orite retailer regarding ne" products, ser!ices or promotions >preferred y ;6@ of consumersB, "hile only 9-.7@ preferred direct mail. Sender 'ecognition, ontent 'ele!ance $ost Impacts %urchasing consideration eha!ior, the line continues to e the most compelling reason to open permission(ased email, cited y /9.9@ of all respondents, an increase from ;6.6@ in-;. This speaks to the gro"ing significance of user recognition of sender and the po"er of rands F e!en more important in an era of spam. Of all types of o f su2ect lines, discount offers are the primary pr imary moti!ational factor for opening permission ased email >increased to;6.;@ of all respondents from ;/.<@ in -
3hen asked "hat most compelled them to take action on a permission(ased email, product I needed at the time, a reflection of the rele!ancy of the offer o ffer,, "as "as noted y9<.A@ of all respondents, outranking the ne0t most common choice, special offer or discount, cited y 9;.@ of respondents. Hikeliness to respond could e increased if an email contains rele!ant information >noted y /<.9@ of respondentsB re spondentsB and contains information ased on interests specified to that company. company. onsumers found recommendations ased on past purchasing eha!ior less appealing >noted y only -A.7@ -A .7@ of all respondentsB.onsumers clearly "ant a degree of control o!er "hat marketers send them and "ould like their specified interests taken into account. onsumers are also !ery specific in their fre Cuency preferences, "ith ne"s and "eather most often preferred daily, special offers from retailers, online merchants and 108
catalogers most often preferred preferr ed "eekly, and account statements&ill payment communications monthly. )o"e!er )o"e!er,, therere significant numers of consumers "ho !ary in these preferences, "ith 2ust o!er-@ of those "ho recei!e special offers and discounts from retailers, online merchants and catalogers preferring the communications to come monthly. In accordance "ith specified freCuency statements, "hen asked "hat concerned them aout their ino0es, freCuency of permission(ased email "as second only to Spam, cited y ?-@ of respondents. This danger is e!en more pronounced considering only -A@ noted freCuency of permission( ased email as a concern in-/. learly marketers need to test for optimal freCuency and solicit customer preferences. Email Dri!es $ulti(hannel %urchases 4ut at the E0pense of Offline 'etail %ermission(ased %ermission(ased emails clearly dri!es purchases. Si0ty(se!en percent of respondents recei!ed an email offer from a onsumers take action on emails corresponding to product need 'ele!ant content, information specified y user increases likeliness to respond -< onsumer Email Study, ataloger ataloger or online merchant that resulted re sulted in a purchase. Top Top purchasing categories "ere1 apparel&shoes at A9.?@making a purchase, computer soft"are&hard"are at A7.?@, gifts&flo"er sat <<./@, tra!el at <<.-@, electronics at<<.7@ and food at <7.<@. The only under performing category "as financial products and ser!ices at ?7.;@, "hich could relate to the high consideration necessary for these products, the incidence of spam in this category or lack of interest due to the economy. economy. The channel purchased in as a result of permission(ased email is highly specific to the category of product1 tra!el had the highest incidence of online purchase at<@ "ith only 79@ purchasing y catalog&phone&mail, "hile apparel&shoes had a relati!ely high incidence of online purchase, ;A@ "ith ?7@ purchasing !ia offline retail re tail and -9@ !ia catalog, and o!er the counter and prescription drugs had eCual le!els of online and retail purchase at [email protected] marketing promotes use of the online channel. In comparing the typical channel purchase eha!ior of respondents in a !ariety of categories to "here they "ere most likely to purchase after recei!ing permission ased email, the results sho" that r espondents are more likely than usual to use the online channel for purchasing after recei!ing a permission ased email this is true in all categories e0cept financial ser!ices. In apparel&shoes, "here 97@ "ould typically uy online, a permission(ased email resulted in an increase of online channel usage to ;A@, gifts&flo"ers sa" online channel lift from ?;@to /7@, and e lectronics from ?;@ to /@.5or consumers "ho recei!e email offers from retailers in the apparel&shoes category, email marketing does increase use of the catalog channel. Of those "ho recei!e emails from catalogers, 7/@ reported that they typically ought !ia catalogs. This numer rose to -9@ saying they had purchased though a catalog after recei!ing permission ased email. This e0ample illustrates the direct connection et"een catalog drops "ith e ffecti!ely seCuenced email marketing used as a purchase dri!er. The Hatent Impact of Email $arketing $ost action taken in response to email marketing does not result immediately from the click. 3hile -<@ clicked through and made a purchase pur chase during that same online session, an e!en greater 109
numer, 99./@, clicked through to find out more information, then purchased online at a later date. :n additional 7-.-@ clicked through to find more information and then purchase offline o ffline through catalog or retail. %ermission(ased offers generate sales.
:s "as demonstrated y the great interesting intere sting discounts and special offers, email usage for composing is on the rise and as offline thus latent impact as "ell. Se!enty t"o percent of respondents reported ha!ing used coupons or offer codes >an increase of ;<@ o!er the ?/@"ho reported using them in --/? emails per "eek !s. -;? in -consistent "ith last yearB.The percent of email recei!ed that "as Spam ;/@ "as also consistent "ith-<. 3hat ha!e changed are their opening practices1 Only -<@ opened 6@ of their permission ased email, "hile aout a third >9@B did so in -<. In regards to "hat they are most likely to do "ith Spam, an increasing numer are deleting "ithout reading >/;@ as compared to/@ in -as compared to ;@ in -< and 7A@ in-/B. The likeliness of unsuscrie has declined markedly >from 99@ in-/ to -?@ in -
%erhaps consumers ha!e gotten fed up or decided the acti!ity "as futile. 3hen asked "hat specifically they "ere doing to eliminate or limit spam, a !ocal minority, minority, 9/.7@ reported using a Spam function of their email program, 7;.6@do"nloaded spam filtering soft"are and79.<@ created a secondary email addressor making online purchases. : key finding of the -; - ; study had een the usage of on a!erage -./ email addresses per respondent. This year, respondents ha!e clearly ecome tired of the comple0ity of managing those accounts1 this year, only only 9?@ reported ha!ing more than t"o addresses "hile??@ reported ha!ing that many in -<.'espondents seem to e consolidating, "ith an a!erage numer of accounts at-.9 in -<.Hatent impact1 nearly ?/@ purchase online or offline some time after clicking through an email 3ith more than one in(o0, "hat do consumers consider the primary addressJ %erhaps in relation to the amount of 2o instaility and the desire of ha!ing a more permanent address, the home address "as considered the primary one. Of those "ith multiple addresses, cited y ?A.9@B and a free address >cited y 96.<@B as this purchasing address. 'etail( oriented email marketers clearly need to make special efforts at impro!ing deli!eraility among 110
the ma2or home IS%s and free email pro!iders as this clearly "ill impact o!erall performance. $ars K #enus1 $en 'eally :re Different from 3omen in 'espect to Email $arketing T"o T"o !ery specific areas stand out in ho" men !s. "omen react to email marketing1 men ha!e a much roader definition of Spam, "hile "omen are much more likely to e acti!e purchasers as a result of permission(ased email. $ore men than "omen consider spam to fall into these !ery road definitions1 /;@ cited an email from a company that I ha!e done usiness "ith ut comes too often "hile only ;/@ of "omen did so, /7@ of men cited an email that may ha!e een permission ased ut comes too freCuently "hile only ;;@ of "omen did so and 9/@ cited any email that tries to sell me a product or ser!ice "hile 9-@ 9 -@ of "omen did so. orrespondingly, "omen are more sensiti!e to emails of offensi!e su2ect matter >6?@ "omen !s. 67@ menB .:cti!e purchasers, those "ho purchased in multiple product categories or from !arious types of companies >multi(channel shoppersB after recei!ing an email, are more likely to e "omen than men. :loof these data points add up to online eha!ior that mirrors offline.
3omen remain the primary household purchasers, -< onsumer Email Study 'espondents "ith multiple accounts likely to use a free one for online purchases 3omen more likely to e acti!e purchasers, multi(channel purchasers.
The fourth of Doule(lick annual consumer email studies points to an increasing sophistication in consumer usage of email functionality and a corresponding comple0ity of purchasing eha!ior. eha!ior. The Spam crisis continues to affect consumer eha!ior online ut does not necessarily cloud consumer recepti!eness to legitimate marketers1 an o!er"helming ma2ority of online consumers recei!e offers y email and ha!e made a purchase online or offline as a result. onsumers are using a!ailale tools to limit spam and are employing separate email accounts for purchasing, all in attempts to increase control and impro!e their email e0perience. O2ecti!es&$ethodology Doule(lick, "orking "ith 4eyond Interacti!e and the N5O&&net source panel of 6, US consumers, polled 7,consumers !ia email from 8uly 9 ( :ugust;, -<. :ll respondents recruited use email&internet 7= times per "eek, "hich reflects the usage of the larger online population >6?@ of the 7A= online population according to Nielsen, -
ascertain category, are !ery specific to the category of email ut !ary greatly from one onsumers prefer to e contacted y their fa!orite retailer !ia email.
RECOMMEN!ATIONS
1o e6plore the mainland market% @ong Long companies should position themselves in areas in which they are strong- From the viewpoint of mainland consumers% @ong LongOs leather consumer goods are considered competitive in the high*end and mid*range- Mainland consumers are $rand conscious% and it is vital to promote own $rands which have clear image1his survey also shows that @ong Long products are preferred for their designPstyle and quality&earing these in mind% @ong Long companies should never compromise on quality% and they should allocate more resources to product design% selection of material and craftsmanship1o conclude% it can $e said that through the glo$al sports retail industry has reached its maturity% $ut the Indian sports spor ts retail industry is still at its infancy- &ut with the huge potentiality e6isting in the Indian market% it is e6pected to grow in leaps and $ounds in the future
1he prices of the shoes must $e reduced to increase sales 2ew lines of collections should s hould $e introduces for f or festivals1he stores must $e decorated properlySeasonal promotion campaigns% like special discounts / advertisements (maga3ines% internet% etc-)% could $e employed,roduct displays should $e designed to create a strong first impressionMore num$er of outlets should $e opened to reach to all types of customers in all the regionsMore variants should $e introduced in the accessories section-
CHAPTER& (IMITATION (IMITATION AN! SCOPE OF FUTURE RESEARCH 1he collected data are placed into an order- ,ercentages of respondents answered similarly are calculated and placed in a ta$le- 1hen this is interpreted- 1his involved drawing conclusion from the gathered data- Interpretation changes the new information immerging from the analysis into information that is pertinent or relevant to the study-
Due to limited time period and constrained working hours for most of the respondents% the answers at times were vague enough to $e ignored-
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1he collected data are placed into an order- ,ercentages of respondents answered similarly are calculated and placed in a ta$le- 1hen this is interpreted- 1his involved drawing conclusion from the gathered data- Interpretation changes the new information immerging from the analysis into information that is pertinent or relevant to the study-
Due to limited time period and constrained working hours for most of the respondents% the answers at times were vague enough to $e ignored-
Ceographical scope of the study was limited to a small area% which may not represent the whole sector of India8 Si3e of the sample is % which is% of course small in comparison to entire populationDue to limitation of time only few people were selected for the study- So the sample of consumer was not enough to generali3e finding of the study1here can $e many interpretations / e6planations to the data collected- 1his is empirical study and the research provides the e6planation as understood $y the researcher only1he source of data for the study was primary data with the help of self*administered questionnaire- @ence% the chance of $iased response cannot $e eliminated through all necessary steps were taken to avoid the same1he data taken from the secondary source like internet% newspaper% $ooks may lack some proper e6planation or may $e not properly interpreted1he responses of customers are presented in a way convenient to the researcher and can $e interpreted in different ways-
SCOPE OF FUTURE RESEARCH 1his study opens up new grounds for further research- Further studies can address the following issues to have more insights on the su$"ectStudies can $e done to find out the effect of Sales ,romotions on !onsumer &ased &rand quity Scale incorporating the concept of $rand personality proposed $y 'aker (5) and shown in the scale developed $y ,apu% Juestar and !ooksey (;)- In this study% &rand 'wareness and 'ssociations were clu$$ed together $ut they could $e separated in future studies-
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Further% studies can e6tend to other ,roduct categories and classes which may lead to the generalisation of the findings of the study- 1he concept of Sales ,romotion and &rand quity in the service sector could also $e e6amined in detail' similar study of this sort could $e conducted during a period when Sales ,romotion is on instead of doing it in a simulated environment like in this study- 1his might reveal possi$le differences in consumer responses $etween real life situation and simulated environment1he study among heterogeneous groups% having different demographic characteristics pertaining to Sales ,romotion and !onsumer &ased &rand quity and with respect to different products and services will $e an added scope for further researchSimilarly% further research might concentrate to find out the differences% if any% that e6ists $etween homogenous groups at different geographical areas'mong the different segments in the market ] economic% popular or premium * which are more prone to Sales ,romotions and what effects they have on !onsumer &ased &rand quity will $e another interesting area of research'nother interesting dimension will $e to find out the differential effect of Sales ,romotions $etween Indian and foreign $rands (country*of*origin effect) as well as national vs- private la$els on !onsumer &ased &rand quity-
CHAPTER&*
CONC(USION
1he specific $rand o$"ective of 2ike India would $e to $uild up its $rand reputation% image and equity- ' $rand is not simply a collection of products and $enefits% $ut also a storehouse of value stemming from awareness% loyalty% and association of quality and $rand personality- ' $rand is a name% term% sign% sym$ol or design or a com$ination of them intended to identify the goods or services of one seller or group of sellers and to differentiate from those of competitors- In essence% a $rand identifies the th e seller or maker- It can convey up to si6 levels of o f meaning. 'ttri$utes% &enefits% 9alues% !ulture% ,ersonality and User- If a company treats a $rand only as a name it misses the point1he $randing challenge is to develop a deep set of positive associations for the $rand-
'lthough these si6 meanings are noticea$le in the 2ike $rand in the west and other parts of the world% they are yet to $e cultivated in India- 2ike has to ensure that their $rand is $uilt up on these 114
pillars in India-
1he secondary $rand o$"ective of 2ike India would $e to ensure that they match the market share and sales volumes of its competitors- 'fter all% a company is in $usiness to make profits and stay ahead of its competitors- ' company% product or $rand may have a very good reputation and image% $ut if it is not profita$le% it does serve its purposepurp ose- 't 't the same time sales figures and data can $e misleading- @ence market share has also to $e paid attention to-
2ike despite $eing one on e of the most popular $rands $ran ds in the world has not really caught on in India- Aet% Aet% there is reason to $elieve that &ata7s ,ower and Bi$erty would $e ahead of 2ike in terms of popularity- :e :e also notice that 2ike is at par with +ee$ok- 1his again does not reflect too well on the $rand% considering that 2ike outsells +ee$ok everywhere e verywhere else in the world-
@ence it is reasona$le to state that 2ike7s popularity level in India could do with a $oost- 1he $est way to achieve this would $e some serious $rand $uilding- 1he image of the $rand has to $e improved and people must $e made aware of its presence- 1hus% the rationale $ehind choosing improvement of $rand image and reputation as the company7s primary o$"ective is quite clear-
2ike7s distinctive competency lies in the area of marketing% particularity particulari ty in the area of consumer consu mer $rand awareness and $rand power- n the glo$al scale this key distinctive distinctiv e competency towers over ove r the competitors- 's a result% 2ike7s market share is num$er*one in the athletic footwear industry in most places around the world- !atch phrases like% N?ust Do It%N and sym$ols like the 2ike NSwoosh%N couple with sports icons to serve as instant reminders of the 2ike mpire- It is a$out time that this competency is leveraged on to India-
1wo key attri$utes of a distinctive competency are its ina$ility to $e easily replicated and the value or $enefit it offers to consumers- Few companies co mpanies have such a recogni3a$le reco gni3a$le image and the resources r esources to promote it- 1his ultimately translates into added value for fo r consumers- 1he pu$lic $enefits from fr om the strength of 2ike7s image at the point of purchase- For decades% consumers have come to associate the 2ike image with quality productsprod ucts- &y associating star athletes ath letes and motivational slogans like% N?ust Do It%N with marketing campaigns that emphasi3e fitness% competition% and sportsmanship% consumers identify their purchases with the prospect of achieving greatness- Aounger consumers especially $enefit from this positive influence- 1his image is something that competing companies can not easily duplicate $y simply enhancing the physical characteristics of their products115
2ike7s vision is to remain the leader in the industryindu stry- 1he company will continue to produce pro duce the quality products that have $een provided in the past- Most importantly% 2ike will continue to meet the ever*changing needs of the customers% through product innovation- In the past% the company has utili3ed product differentiation as the main competitive strategy- 's 2ike7s reputation dictates% it will continue to place emphasis in this area- 2ike has $uilt its $usiness on providing products that rise a$ove all others and this has made it the worldwide success that it is today-
2ike is known for its technologically techno logically advanced products and is the leader lead er in this area- 1his allows 2ike7s products to stand out from the rest- 1he company7s focus also allows it to mainta in a somewhat narrow niche that ena$les it to effectively capture the needs and wants of the consumers'n e6ample of 2ike7s superior and innovative technology is its new range of shoes called K'ir ,resto#- 1ermed as the first 1*shirt for the feet% these shoes can take the shape and si3e of the wearer7s feet- Unlike regular shoes it comes are si3es like `B% B% M% S and `S- ach of these si3es can accommodate three conventional foot si3es- 2ike will continue to produce such path*$reaking products in the future futu re and stay a step ahead of its competitors-
2ike will also focus on making a strong effort in price leadershipleaders hip- 2ike7s products in the past have $een concentrated in the higher end of the pricing category- 'n 'n entrance will now $e made into in to lower price categories with these quality productsprodu cts- 1his will ena$le 2ike to capture an even greater hold on market share-
,resently% the only form of customer relationship management activity that 2ike has adopted in India is product warranty- 2ike shoes come with a si6*month warranty- If the shoe is found to $e defective or wears out within si6 months due to no fault of the wearer% 2ike replaces the product- 1his is only the first step and more needs to $e dome in this area&eing a company that always strives towards e6cellence% 2ike needs to know e6actly what its customers think a$out their products- ' good way of assessing this would $e to have the customer fill in a form at the point of purchase- 1he form will ask the customer his P her opinion on the product as well as the showroom- Suggestions and comments would $e welcome- @owever% care must $e taken to ensure that these forms are not too cum$ersome and do not take up too much of the customer7s time- Surveys have indicated that normally people don7t mind filling in forms as long as they are not too long116
'nother good method would $e to introduce a system of customer points- very time a customer makes a purchase% he would earn himself a certain num$er of points% depending on the price of the product- 'fter he crosses a certain point level% lev el% he would $e entitled to a gift g ift from the company or choose a product of a certain value from the range- 1his would $e helpful in $uilding customer loyalty and give them an incentive to make repeat purchases- ' most valued customer data$ase could $e created from her e and various forms of direct marketing marketin g could $e directed at them- 1his would help the company to retain its e6isting customers-
' third way to improve customer relationship would $e to issue gift coupons and vouchers- ,eople would have the facility to $uy these vouchers and present them to their dear ones- 1his would $e a good way to reach out towards newer customers through e6isting ones6perts $elieve that e*commerce is a key area for economic development in the ;5st century- 1his is undou$tedly true in relation to +ussia% where over the ne6t few years will continue the rapid growth of e*commerce- !urrently% we are witnessing the rapid spread of the Internet% not only in the cities $ut also in remote regions region s of +ussia- In my view% a few years in e*commerce will $e involved more users% and one in five will $e weekly shopping online- 1hose enterprises that $efore others will create their representation on the Internet% will have an advantage over those who work e6clusively in the traditional formIn conclusion% the degree pro"ect should $e noted that all the goals and o$"ectives have $een met. b :as determined the relevance of the e*shop% selling different kind of shoesb :ere considered the pros and cons of e*commerceb :ere studied the competitors to get the idea what are their strong and weak point% to develop the competitive strategy of BifeShoes pro"ectb :as decided the design of the we$siteb :as decided the ways of promotion'ccording to estimates% it was determined that the pro"ect should $e recouped through 55% months1he aim of this pro"ect was to develop competitive marketing plan of opening the e*shop of sport shoes and $oots% so the we$*page is one of the most important things it should $e noted that in the 117
developed of BifeShoes store interface is successfully com$ined with either functionality or ease usageDeveloped the most convenient and accessi$le work potential client% accessi$le and understanda$le dialogs- !ategorised products with a detailed description with illustrations% fle6i$le a$ility to search $y various criteria% $y $rowsing NnoveltiesN and the $est*selling products will leave a good impression on the client- n any product $uyer can leave feed$ack% there$y forming% and additional advertising product- In way to give confidence to the $uyer in the safety of their confidential dat% will $e presented good quality pictures of products from all sides around% the forum where $uyers and users could leave their comments% it will $e pu$lished the documents of guarantees% certifications% etc- 9arious ways of payment and delivery will suit for any customer% $ecause it can receive your order without leaving the house on time- It is possi$le to fle6i$le work of Bogistics !ompany and the safest kind of payment * cash in delivery that is the most popular kind of payment in +ussian Federation'nother conclusion is that the promotion is another of the most important parts for the internet shops% that includes in S work% different kind of advertisements% as $anners% mailings% etc% also as different offers% via discounts% sales% gifts * to o$tain even more customers-
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119
;UESTIONNAIRE
5- Do you like 2ike footwear productsR :hy or :hy notR
(a) (a) Aes ($) 2o
;- Did you $uyed nike footwear productsR
(a) (a) Aes ($) 2o
- :hy do you $uy nike footwear productR
(a) (a) @igh @igh qual quality ity ($) &rand &rand 1rendy 1rendy pursuer pursuer (c) (c) the therr
=- :hat type of sports do you likeR
(a) (a) Socce occer r ($) &aske &asket$ t$al alll (c) (c) +unn +unnin ing g (d) (d) the ther r
- If you want to $uy a sports footwear% which one is your $est choiceR
(a) (a) 2ike 2ike ($) ($) +ee$ +ee$ok ok (c) (c) 'ddi 'ddida dass (d) (d) the thers rs
E- :hat kind of nike products do you $uyR (a) (a) Foot Footwe wear ar 120
($) ($) !lot !lothe hess (c) 'cce 'ccesso ssori ries es (d) (d) the ther r
H- Do you think prices of nike footwear is e6pensiveR
(a) (a) Aes ($ ) 2o
G-:here is the $est place to reach you with 2ike advertisementR
(a) 1elevisi levision on ($) 2ews 2ewspap paper er (c) (c) Maga Maga3i 3ine ne (d) Inter Internet net
--@ow often do you $uy nike productsR
(a) (a) Dail Daily y ($) :eekly ekly (c) (c) Mo Mont nthl hly y (d) Aearly arly
5- @ow many times do you watch nike 19 19 adverstisment in one monthR
(a) (a) tim times ($) 5* times times (c) (c) E*5 E*5 times times (d) 55*5 55*5 time timess
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