14816327 consumer-preference-about-different-branded-sports-shoes-mba-major-project-report

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14816327 consumer-preference-about-different-branded-sports-shoes-mba-major-project-report

  1. 1. CONSUMER PREFERENCE ABOUT DIFFERENT BRANDED SPORTS SHOES SUBMITTED TO: PUNJAB TECHNICAL UNIVERSITY, JALANDHAR IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION BATCH (2007-2009)GUIDE: SUBMITTED BY:Mr. PUSHPINDER SINGH SHAH FAISAL ENROLEMENT No. 7116223117 RIMT-Institute of Management & Computer Technology, Mandi Gobindgarh TABLE OF CONTENTS
  2. 2. CONTENT PAGE NOCertificate 1Acknowledgement 2Declaration 3Executive Summary 4Research Objectives 6Research Methodology 7-10Limitations 11Company Profile 12-28Data Analysis & Interpretation 29-42Suggestions & Recommendations 43-44Annexure 44-48Bibliography 49-50 CERTIFICATE
  3. 3. This is to certify that Shah Faisal, a student of Master of Business Administration(MBA), a class of 2009, RIMT-IMCT, Affiliated to Punjab Technical University(Bearing Enrolment No 7116223117, has worked on a project which is considered as apart of our 4th sem. He has worked under my guidance for the Project Title “consumerpreference about different branded shoes”.This project report is prepared in partialfulfillment of Master of Business Administration (MBA) to be awarded by PunjabTechnical University, Jalandhar. To the best of my knowledge, this piece of work isoriginal & no part of this report has been submitted by the student to any other Institute /University earlier.Date Mr. Pushpinder Singh ACKNOWLEDGEMENT
  4. 4. The research on “CONSUMER PREFERENCE ABOUT DIFFERENTBRANDED SPORTS SHOES” has been given to me as part of the curriculum in 2-Years Masters Degree in Business Administration. I have tried my best to present thisinformation as clearly as possible using basic terms that I hope will be comprehended bythe widest spectrum of researchers, analysts and students for further studies.I have completed this study under the able guidance and supervision of Prof. PushpinderSingh; I will be failed in my duty if I do not acknowledge the esteemed scholarlyguidance, assistance and knowledge. I have received from them towards fruitful andtimely completion of this work.Mere acknowledgement may not redeem the debt I owe to my parents for theirdirect/indirect support during the entire course of this project. I also thankful to my friend who helped me a lot in the completion of this project. SHAH FAISAL DECLARATION
  5. 5. Hereby declare that the project report entitled “CONSUMER PREFERENCE ABOUTDIFFERENT BRANDED SPORTS SHOES.” submitted for the degree of Master ofBusiness Administration, is my original work and the project report has not formed thebasis for the award of any diploma, degree, associate ship, fellowship or similar othertitles. It has not been submitted to any other university or institution for the award of anydegree or diploma.Place:Date: Shah Faisal MBA-IV Sem EXECUTIVE SUMMARY
  6. 6. This project takes a look in various kinds of Merchandising activities, Market Share of different sports shoes and various Sales Promotion schemes, which are followed in the Sports shoes industry. The three major global players i.e. Reebok, Nike, and Adidas dominate the sports shoes industry in India. India is one of few battlegrounds in the world where there is neck-to-neck competition between the three. The companies claim to be in number one sport coating the data produced by two different marketing research companies.In the 1980s, Adidas sneakers became popular amongst teenagers and young men. TheAdidas sneaker was popularized by the Run DMC song "My Adidas" and became a hugefashion trend. The Tapie affair the history of the company as presented by its official website is incomplete, perhaps because it is indirectly linked to financial scandals. After aperiod of serious trouble.The death of Adolf Dasslers son Horst Dassler in 1987, thecompany was bought in 1990 by Bernard Tapie, for 1.6 billion French francs ($320million), which Tapie borrowed. Tapie was at the time a famous specialist of rescuingbankrupt companies, a business on which he built his fortune.Nike is the worlds #1 manufacturer and marketer of athletic footwear and apparel.Almost out of the blue, the company established itself as one of the worlds most familiarbrands during the 1980s and 1990s.As familiar as a Coke bottle or Big Mac, the Nike "swoosh" logo came to symbolize notjust sports culture, but street culture, as the appeal of the star players who endorsed thebrand was carried onto city streets. The approach of the new century set Nike newproblems.Trainers went (briefly) out of fashion, economic slowdown and labor problems hit Asianperformance. But the group has bounced back, retaining its iron grip on the sportingapparel sector and still undisputed leader in sports-oriented street wear.Reebok is the worlds third-largest maker of sneakers, athletic shoes and sports apparel.Goods are sold under the brands Reebok, Rockport and Greg Norman Collection. Reebok
  7. 7. is also the official outfitter of the NFL and has an exclusive deal to supply NBA jerseysbeginning this season. Reebok announced in July it will merge with German sporting apparel companyadidas-Salomon in a deal valued at $3.8 billion. The merger is expected to be completedby the first half of 2008 and will create the second-largest sporting goods companybehind Nike with $11 billion in revenues. Adidas will maintain its corporate headquarters in Germany and its North Americanheadquarters in Portland, OR. Paul Fireman will remain as Chief Executive Officer ofReebok International Ltd. and will continue to lead the Reebok team. Reebok willcontinue to operate under its name and will retain its headquarters in Canton, MA. In fiscal 2008, Reebok had net income of $192.4 million and sales of $3.7 billion. RESEARCH OBJECTIVE
  8. 8. The research study tends to follow and achieve specific objectives.The objectives of this particular study are:-• To know the personal views of “CHANDIGARH” people regarding choices among various branded sport shoes.• To study which branded sport shoes is mostly preferred by people as per their choices.• Comparison between various branded sport shoes.• Find out factor influencing the people at the time of purchasing sport shoes QUALITY, DUREBILITY, VARIETY, PRICE, And USE IN SPORT OR ANY OTHER.
  9. 9. RESEARCHMETHODOLOGYRESEARCH METHOLOGY
  10. 10. RESEARCH METHODOLOGYResearch problems: consumer’s preference about the different brandedsports shoesResearch methodology: Exploratory methodSAMPLING PLAN -Sample Methods - Random Simple SamplingSample size - 100Primary data -Questionnaire -InterviewSAMPLEWhile deciding about the sample of research, it is required from theresearcher’s point to pay attention to these under mentioned points: a) Sample Units: A decision has to be taken concerning a sampling unit before selecting a sample, sampling unit may be a geographical one such as state, district, village Etc. so in this research sampling unit is Chandigarh area. b) Source of data: Data required for the study was collected through primary sources i.e. Market Survey. and the market area is: CHANDIGARH. c) Sampling size: This refers to the no. of items to be selected from the universe to constitute a sample. This is a major problem before
  11. 11. the researcher. The size of sample should neither be excessively large not too small, it should be optimum. This size of population must be kept in view for this also limits the sample size .Sample size in this research is 100. INSTRUMENTS USED Primary data collected through sample survey from the selected elementsin malls and super markets. So for this purpose I have used the most populartool of primary data collection through direct communication withrespondents. The tools I used are questionnaires..METHOD OF DATA COLLECTIONActually data is of two kinds which are following-a) Primary Data: Primary data are those, which are collected afresh and for the first time and this happen to be original in character.b) Secondary Data: Secondary data are those data which have already been collected by someone else and which have already been used as per required.There are basically two sources to collect secondary data a) Internally: Provided by the company/organization b) Externally: Various publication of central, state and local Government. • Books, magazines, newspapers • Internet
  12. 12. After only keeping in mind one can think about what type of data has to becollected during research as our research is concerned I have to gatherprimary data for Customer preference. RESEARCH INSRUMENTS:QUESTIONNAIRE DESIGN:As the questionnaire is self administrated one, the survey is kept simple anduser friendly. Words used in questionnaire are readily understandable to allrespondent.I have made the questionnaire in which questions are according to theresearch and these are convenience for the respondent. LIMITATIONS OF THE STUDY
  13. 13. While surveying I encounter with some problems like- • A survey should involve a larger sample size otherwise the findings of the survey can not be generalized. • But a larger sample size may increase the time and cost of collecting the primary data with the help of Questionnaire. • In some of the retail showroom it is not allowed to get the questionnaire filled. • Many of the respondents were not willing to fill the questionnaire. • Some people were not willing to respond and few of them who responded were in hurry hence the active participation was lacking. Due to which I faced difficulties in collecting information’s regarding our questionnaire. • Another problem which I face was that people were hesitating to give information about their views freely.
  14. 14. COMPANYPROFILE
  15. 15. AdidasINTRODUCTIONAdidas is a German sports apparel manufacturer, part of the Adidas-Salomon Corporation. Adidas was named after its founder, Adolph (Adi)Dassler, who started producing shoes in the 1920s in Herzogenaurach nearNuremberg with the help of his fellow friend Cody. It registered as AdidasAG on 18 August 1949. The companys clothing and shoe designs typicallyinclude three parallel stripes of the same color, and the same motive isincorporated into Adidas official logos.COMPETITORSRudolf Dassler, Adie’s brother, founded a rival company, PUMA the chiefcompetitors of Adidas are Puma and Nike. In August 2005, the companyannounced that it had made a deal to acquire rival Reebok for $3.8 billion.The acquisition would increase its market share in North America and allowit to further compete with Nike. This will propel Adidas to the number twospot in the foot apparel market behind Nike. Adidas trademark saying isimpossible is nothing.
  16. 16. ENHANCEMENTIn the 1980s, Adidas sneakers became popular amongst teenagers and youngmen. The Adidas sneaker was popularized by the Run DMC song "MyAdidas" and became a huge fashion trend.The Tapie affair the history of the company as presented by its official website is incomplete, perhaps because it is indirectly linked to financialscandals. After a period of serious trouble following the death of AdolfDasslers son Horst Dassler in 1987, the company was bought in 1990 byBernard Tapie, for 1.6 billion French francs ($320 million), which Tapieborrowed. Tapie was at the time a famous specialist of rescuing bankruptcompanies, a business on which he built his fortune.Tapie decided to move production offshore to Asia. He also hired Madonnafor promotion.In 1992, Tapie was unable to pay the interest from his loan. He mandated theCredit Lyonnais bank to sell Adidas, and the bank subsequently convertedthe outstanding debt owed into equity of the enterprise, which was unusualfor then-current French banking practice. Apparently, the state-owned bankhad tried to get Tapie out of dire financial straits as a personal favor toTapie, reportedly because Tapie was a minister of Urban Affairs (ministre dela Ville) in the French government at the time.In February 1993, Credit Lyonnais sold Adidas to Robert Louis-Dreyfus, afriend of Bernard Tapie (and cousin of Julia Louis-Dreyfus from theSeinfeld TV series), for a much higher amount of money than what Tapieowed, 4.485 billion francs rather than 2.85 billion. Forgetting why the bank
  17. 17. actually bought Adidas, Tapie later sued the bank, because he felt spoiled bythe indirect sale.Robert Louis-Dreyfus became the new CEO of the company. He is also thepresident of the Olympique de Marseille football team, to which Tapie isclosely linked.Tapie went bankrupt himself in 1994. He was the object of several lawsuits,notably related to match fixing at the football club. He spent 6 months in LaSanté prison in Paris in 1997 after being sentenced to 18.In 2005, French courts awarded Tapie a 135 million euro compensation(about 886 million francs).Post-Tapie eraIn 1997, Adidas AG acquired the Salomon Group, and its corporate namewas changed to Adidas-Salomon AG.
  18. 18. A HAWK EYE VIEW In 1998, Adidas sued the NCAA over their rules limiting the size and number of commercial logos on team uniforms and apparel. Adidas withdrew the suit, and the two groups established guidelines as to what three-stripe designs would be considered uses of theAdidas AG ADIDAS Type Public Founded 1949 Location Herzogenaurach, Germany Key people Adolph Dassler, founder Herbert Hainer, CEO Robin Stalker, CFO Andreas Gellner, Managing Director, India Industry Textile Products Footwear Accessories Revenue $7.866 billion USD (2003) Website www.adidas-group.com
  19. 19. In 2003, Adidas filed a lawsuit in British court challenging Fitness WorldTracing’s use of a two-stripe motif similar to Adidass three stripes. Thecourt ruled that despite the simplicity of the mark, Fitness Worlds use wasinfringing because the public could establish a link between that use andAdidass mark.In 2005, Adidas introduced the Adidas 1, the first ever production shoe toutilize a microprocessor. Dubbed by the company "The Worlds FirstIntelligent Shoe" it features a microprocessor capable of performing 5million calculations per second that automatically adjusts the shoes level ofcushioning to suit its environment. The shoe requires a small, userreplaceable battery that lasts for approximately 100 hours of running. Itcurrently retails for $250 (USD). The latest edition adidas 1.1 has beenselling since Nov 2005. This is considered an upgrade of the version 1,claiming to be better, faster and stronger.Also in 2005, on May 2, Adidas told the public that they sold their partnercompany Salomon Group for 485 mn Euros to Amer Sports of Finland.In August 2005, Adidas declared its intention to buy Anglo-American rivalReebok for US$ 3.8 billion. This takeover was completed in August 2005and meant that the company will now have closer business sales as those ofNike in Northern America. The acquisition of Reebok will also allow Adidasto compete with Nike worldwide. World Cup 1954When West Germanymiraculously won the soccer 1954 World Cup, their footwear was suppliedby Adidas. These shoes introduced a technological breakthrough: studs withscrews. When the weather was good and the pitch was hard, the shoes wereequipped with short studs; when it rained; longer studs were screwed on thebottom of the shoes. As the final game against the highly-favored team fromHungary was played in heavy rain, this gave the German players a firmerhold on the slippery pitch.This anecdote was a plot device used in the successful German film, DasWunder von Bern, which was a movie version of the 1954 World Cup.
  20. 20. Official World Cup supplier Since the 1970 FIFA World Cup with thefootball Telstar, Adidas has been the FIFA official match ball supplier forevery FIFA World Cup and designs the official match ball for every editionof the event.Adidas factory outlet in Herzogenaurach, Germany Teams sponsoredby adidasAdidas sponsors major teams in a number of sports, especially football,rugby and tennis. American college sports teams are also sponsored. (1993-2001): Robert Louis-Dreyfus. He has been highly successful with managingthe company until 2001. His self-admitted secret was simply copying whatNike and Reebok did."Adidas" is simply a combination of the founders nickname (Adi) and thefirst three letters of his last name (Dassler). This dispels the rumor that theletters are an acronym for "all day I dream about sports," "all day I dreamabout soccer," or more crudely "all day I dream about sex." companies of Germany
  21. 21. adidas-Salomon | Allianz | | BASF | Bayer | BMW | Commerzbank | Continental | DaimlerChrysler | Deutsche Bank | Deutsche Börse | Deutsche Post | Deutsche Telecom | E.ON | Fresenius | Henkel | Hypo Real Estate | Infineon Technologies | Linde | Lufthansa | MAN | METRO | Munich Re | RWE | SAP | Schering | Siemens | ThyssenKrupp | TUI | VolkswagenCategories: Shoe companies | Sporting goods manufacturers | Clothing and textilecompanies | Brands | Companies listed on the Frankfurt Stock Exchange Reebok
  22. 22. INTRODUCTION:Reebok is the worlds third-largest maker of sneakers, athletic shoes and sports apparel. Goods are sold under the brands Reebok, Rockport and Greg Norman Collection. Reebok is also the official outfitter of the NFL and has an exclusive deal to supply NBA jerseys beginning this season.Reebok announced in July it will merge with German sporting apparelcompany adidas-Salomon in a deal valued at $3.8 billion. The merger isexpected to be completed by the first half of 2006 and will create thesecond-largest sporting goods company behind Nike with $11 billion inrevenues.Adidas will maintain its corporate headquarters in Germany and itsNorth American headquarters in Portland, OR. Paul Fireman willremain as Chief Executive Officer of Reebok International Ltd. and willcontinue to lead the Reebok team. Reebok will continue to operateunder its name and will retain its headquarters in Canton, MA.In fiscal 2004, Reebok had net income of $192.4 million and sales of $3.7billionBRIEF HISTORY:Reeboks origins go back to 1895 when Joseph William Foster maderunning shoes with spikes in them. He formed a company called J.W.Foster and Sons which made shoes for top runners. The family-ownedbusiness made the shoes for athletes in the 1924 Summer Olympics.In 1958, two of the founders grandsons started a companion companythat came to be known as Reebok, named for an African gazelle.In 1979, Paul Fireman, a partner in an outdoor sporting goodsdistributorship, spotted Reebok shoes at an international trade show.He negotiated for the North American distribution license andintroduced three running shoes in the U.S. that year. At $60, they werethe most expensive running shoes on the market.By 1981, Reeboks sales exceeded $1.5 million, but a dramatic move wasplanned for the next year. In 1982, Reebok introduced the first athletic
  23. 23. shoe designed especially for women; a shoe for a hot new fitness exercisecalled aerobic dance. The shoe was called the Freestyle, and with itReebok anticipated and encouraged three major trends thattransformed the athletic footwear industry: the aerobic exercisemovement, the influx of women into sports and exercise and theacceptance of well-designed athletic footwear by adults for street andcasual wearReebok went public in 1985.BENEFITS:MEDICAL INSURANCE Employees who work at least 20 hours perweek are eligible to join our group medical plans after one month ofemployment. We currently offer three health plans (depending on yourgeographical location) so that you may choose the plan that best suitsyour needs. All of our plans have prescription drug coverage.DENTAL INSURANCE (For both New England and Non NewEngland: Delta Dental)Employees who work at least 20 hours per week are eligible to join ourgroup dental plan after one month of employment. We currently offertwo dental options so that employees may choose the plan that best suitstheir needs.GROUP LIFE INSURANCE & AD&D (Prudential)Full-time employees. We currently offer $10,000, one times anemployees base pay or two times an employees base pay; supplementallife up to $300,000. The maximum coverage for Life and AD&D are$500,000 each.LONG-TERM DISABILITY (Prudential)Full-time employees. Coverage begins on the 91st day of disability. Weoffer three different levels of coverage - 50%, 60% and 70% of baseearnings.SHORT-TERM DISABILITYFull-time employees. Coverage equals 100% of base earnings for up to90 days.
  24. 24. TRAVEL ACCIDENTAL DEATH & DISMEMBERMENT (AmericanInternational Group) Five times your annual salary to a maximum of$1,000,000. Coverage is free.REEBOK EMPLOYEE STOCK PURCHASE PLANAll Employees with six months of service may elect to participate in theReebok Stock Purchase Plan. Employees may contribute between 2%and 10% of their weekly earnings on an after-tax basis to buy stock at aspecial discount at the end of an option period. Option periods begin onJanuary 1 and July 1.REEBOK SAVINGS AND PROFIT-SHARING RETIREMENT PLANAll employees with one year of service (and over age 21) are eligible toparticipate in the 401(k) plan. Under this plan, employees maycontribute between 1% and 80% of pre-tax earnings, choosing howtheir contributions are invested. To encourage participation, Reebokprovides an employer matching contribution of 50 cents for each $1.00saved by the employee, up to 10%. This matching contribution is vestedover a five year period. Unless employees call to decline participationor change their contribution percentage, all newly hired employees willbe automatically enrolled at 2% and defaulted into the Stable ValueFund, after completing the eligibility requirements.The Profit Sharing component is discretionary and is also vested over afive-year period. Employeesbe employed with RIL for one year to beeligible to receive this discretionary contribution.PAID VACATIONTwelve Vacation time is accrued on a monthly basis. Full-timeemployees accrue .833 days per month with a maximum of 10 days in acalendar year. In the calendar year in which employees celebrate theirfifth anniversary, vacation is increased to three weeks, in the calendaryear of their tenth anniversary, vacation is increased to four weeks peryear and in the calendar year in which the employee celebrates theirtwentieth anniversary, vacation is increased to five weeks per year.Part-time employees working at least 20 hours per week accumulatevacation time on a pro-rated basis.PAID SICK LEAVEFull-time non-exempt (generally those paid on an hourly basis)employees accumulate? Day sick time per month for the year. Part-time
  25. 25. non-exempt employees working at least 20 hours per week accumulatesick time on a pro-rated basis.PAID HOLIDAYSTwelve holidays are observed annually by Reebok International Ltd.Holidays typically observed by the Company include, but are notlimited to: New Years Day, Martin Luther King Day, Memorial Day,Independence Day, Labor Day, Thanksgiving, and Christmas Day.Floating holidays are also provided.EDUCATIONAL ASSISTANCE:Full-time employees are immediately eligible for educational assistance.Undergraduate, graduate and continuing education classes must be pre-approved and must be both job related and required to enhance jobperformance. Reebok International Ltd. reimburses up to 100% oftuition costs, providing a "C" or better is earned. The maximumreimbursement for the calendar year is $10,000 for graduate programsand $5,250 for undergraduate programs, which includes books andmaterials.DEPENDENT CARE AND MEDICAL CARE REIMBURSEMENTACCOUNTSFull-time employees may elect to defer pre-tax dollars to be used toreimburse qualified dependent care and medical care expenses.LIFE BALANCES RESOURCESFree to employees. A nationwide service designed to assist employeeswith information and resources to balance the demands of work andpersonal life including finding quality, near-site day care.EMPLOYEE ASSISTANCE PROGRAMFree to employees and their families. Confidential counseling onpersonal issues.EMPLOYEE DISCOUNTSEmployees and their families are able to purchase quality Reebok, GregNorman Collection, Rockport, and Ralph Lauren Footwear products atdiscount prices through the Employee Purchase Program. They receive
  26. 26. a 40% discount on apparel and footwear products purchased at thecompany outlet stores50% discount at all concept stores.FITNESS AND WELLNESS CENTERSFor a low price, employees at the Canton and Lancaster sites mayaccess exercise classes, wellness activities and state-of-the-art equipmentin our professional staffed fitness centers.BUSINESS CASUAL ENVIRONMENTSave the stiff, uncomfortable stuff for social events. Suits and ties arenot required.
  27. 27. Nike (US)INTRODUCTION:Nike is the worlds #1 manufacturer and marketer of athletic footwearand apparel. Almost out of the blue, the company established itself asone of the worlds most familiar brands during the 1980s and 1990s. Asfamiliar as a Coke bottle or Big Mac, the Nike "swoosh" logo came tosymbolize not just sports culture, but street culture, as the appeal of thestar players who endorsed the brand was carried onto city streets. Theapproach of the new century set Nike new problems. Trainers went(briefly) out of fashion, economic slowdown and labour problems hitAsian performance. But the group has bounced back, retaining its irongrip on the sporting apparel sector and still undisputed leader in sports-oriented street wear.The Ad brands Company Profile of Nike summarizes the companyshistory and current operations and also contains the following websitelinks:HISTORY OF NIKE:NIKE, pronounced NI-KEY, is the winged goddess of victory accordingto Greek mythology. She sat at the side of Zeus, the ruler of the Olympicpantheon, in Olympus. A mystical presence, symbolizing victoriousencounters, NIKE presided over historys earliest battlefields. A Greekwould say, "When we go to battle and win, we say it is NIKE."Synonymous with honored conquest, NIKE is the twentieth centuryfootwear that lifts the worlds greatest athletes to new levels of masteryand achievement. The NIKE swoosh embodies the spirit of the wingedGoddess who inspired the most courageous and chivalrous warriors atthe dawn of civilization. (From Nike Consumer Affairs packet, 1996)
  28. 28. The SwooshThe SWOOSH logo is a graphic design created by Caroline Davidson in1971. It represents the wing of the Greek Goddess NIKE. CarolineDavidson was a student at Portland State University in advertising. Shemet Phil Knight while he was teaching accounting classes and shestarted doing some freelance work for his company. Phil Knight askedCaroline to design a logo that could be placed on the side of a shoe. Shehanded him the SWOOSH, he handed her $35.00. In spring of 1972, thefirst shoe with the NIKE SWOOSH was introduced.....the rest ishistory! (From Nike Consumer Affairs packet, 1996)The Nike athletic machine began as a small distributing outfit located inthe trunk of Phil Knights car. From these rather inauspiciousbeginnings, Knights brainchild grew to become the shoe and athleticcompany that would come to define many aspects of popular cultureand myriad varieties of cool.Nike emanated from two sources: Bill Bower man’s quest for lighter,more durable racing shoes for his Oregon runners, and Knights searchfor a way to make a living without having to give up his love of athletics.Bower man coached track at the University of Oregon where PhilKnight ran in 1959. Bower man’s desire for better quality running shoesclearly influenced Knight in his search for a marketing strategy.Between them, the seed of the most influential sporting company grew.The story goes like this: while getting his MBA at Stanford in the early60s, Knight took a class with Frank Shallenberger. The semester-longproject was to devise a small business, including a marketing plan.Synthesizing Bower man’s attention to quality running shoes and theburgeoning opinion that high-quality/low cost products could beproduced in Japan and shipped to the U.S. for distribution, Knightfound his market niche. Shallenberger thought the idea interesting, butcertainly no business jackpot. Nothing more became of Knights project.Cut to 1963. Phil Knight traveled to Japan on a world-tour, filled withthe wanderlust of young men seeking a way to delay the inevitable call ofprofessional life. Seemingly on a whim, Knight scheduled an interviewwith a Japanese running shoe manufacturer, Tiger--a subsidiary of theNetsuke Company. Presenting himself as the representative of anAmerican distributor interested in selling Tiger shoes to Americanrunners, Knight told the businessmen of his interest in their product.
  29. 29. Blue Ribbon Sports--the name Knight Thought of moments after beingasked who he represented--was born. The Tiger executives liked whatthey heard and Knight placed his first order for Tigers soon thereafter.By 1964, Knight had sold $8,000 worth of Tigers and placed an orderfor more. Coach Bower man and Knight worked together, but ended uphiring a full-time salesman, Jeff Johnson. After cresting $1 million insales and riding the wave of the success, Knight ET. Al. devised the Nikename and trademark Swoosh in 1971.By the late 70s, Blue Ribbon Sports officially became Nike and wentfrom $10 million to $270 million in sales. Katz (1994) describes thesuccess via Nikes placement within the matrix of the fitness revolution:the idea of exercise and game-playing ceased to be something theaverage American did for fun, instead Americans turned to workingout as a cultural signifier of status. Clearly, the circumstancessurrounding the shift are not this simple; it is one of the aims of thisproject to discover other generators of popular attention to health.If Nike didnt start the fitness revolution, Knight says, "We were at leastright there. And we sure rode it for one hell of a ride" (Katz, 66). The80s and 90s would yield greater and greater profits as Nike began toassume the appearance of athletic juggernaut, rather than the underdogof old. "Advertising Age" named Nike the 1996 Marketer of the Year,citing the "ubiquitous swoosh...was more recognized and coveted byconsumers than any other sports brand--arguably any brand" (Jensen,12/96). That same year Nikes revenues were a staggering $6.74 billion.Expecting $8 billion sales in fiscal 1997, Nike has targeted $12 billion insales by the year 2000. And all from the back of a car.Few can question Nikes financial hegemony. But nearly $7 billion inrevenues clearly begs the question, what sells these shoes? It is myassertion that Nikes power to sell comes from deep-rooted yearningsfor cultural inclusiveness and individual athletic accomplishment. Theseseemingly paradoxical desires collide in consumer’s hearts and mindsand produce the unyielding zeal for Nike shoes and apparel.Unfortunate effects of this zeal can be found in the rash of Nike apparelkillings in 1991 and the profusion of Nike appeals to these disparate
  30. 30. elements of Americans personalities through an advertising philosophythat is, at once, simple and sublime. In addition, Nikes practices of top-level athletes promoting their products appeal to countless ages andcreeds as a way to identify with and emulate their athletic heroes. Theseforces work powerfully upon the individual consumer, but one shouldnot lose sight of the cultural context in which the individual moves. BRANDS: Nike Team Sports Converse Cole Haan Nike Football Nike Basketball Nike All Conditions Gear (ACG) Nike Goddess Hurley International Jordan Brand Nike Hockey Nike Town Nike Golf Bauer Blue Ribbon Sports WORLDWIDE: Nike Germany Nike Italy Nike France Nike Spain Nike (UK) Nike Japan Nike Canada Nike Korea Nike Hong Kong Nike Taiwan Nike London (UK)
  31. 31. Data analysis and interpretation “WHICH BRAND DO YOU PREFER” BRAND PERCECENTAGE (%) FREQUENCY Reebok 34 34 Adidas 28 28 Action 9 9 Nike 26 26 Others 3 3
  32. 32. 40 34 35 30 28 26 25 20 15 9 10 5 3 0 Reebok Adidas Action Nike Others Reebok Adidas Action Nike Others COMMENT: most of the people prefer to wear shoes of Reebok brand“ARE YOU SATISFIED WITH THE QUALITY OF PREFERD BRAND” OPTION PERCENTAGE (%) FREQUENCY Yes 98.6 148 No 1.4 2
  33. 33. 1.4, 1% Yes No 98.6, 99%COMMENT: most of the people in surveyed region were satisfied with their brand. “ARE YOU SATISFIED WITH THE PRICE RANGE” OPTION PERCENTAGE (%) FREQUENCY Yes 64 96 No 19 29 No comment 17 25
  34. 34. PERCENTAGE(%) 17% Yes No 19% 64% NO COMMENTCOMMENT: price does not seem any obstacle in the way of consumers. Most of thepeople were happy with given price range. “IF PRICES OF YOUR PREFERED BRAND INCREASES WILL YOU PURCHASE AGAIN” BRAND PERCENTAGE (%) FREQUENCY Same brand 58 87 Cheaper brand 16 23 Any other brand 26 40
  35. 35. 90 87 80 70 58 60 50 40 40 26 FREQUENCY 30 16 20 23 PERCENTAGE(%) 10 PERCENTAGE(%) 0 FREQUENCY Same brand Cheaper brand Any other brandCOMMENT: Increment in price affects the trend and market of the “branded sportsshoe”. “HOW DO YOU CONSIDER THE IMPORTANCE OF SPORTS SHOES”
  36. 36. IMPORTANCE PERCENTAGE (%) FREQUENCY Comfort 68 102 Price 4 6 Durability 16 25 Use in sports 10 15 Any other 2 2 80 68 70 60 50 40 30 20 16 10 10 4 2 0 Comfort Price Durablity Use in sports Any other Comfort Price Durablity Use in sports Any otherCOMMENT: The main ground on which shoe being purchased is the quality of the shoe.This indicates the quality preference among consumers, rather than price, durability etc.“WHAT FACTORS INFLUENCE YOU TO GO FOR A PARTICULAR BRAND”
  37. 37. INFLUENCE PERCENTAGE (%) FREQUENCY Quality 74 111 Price 5 8 Durability 13 20 Variety 8 11 Any other 0 0 80 74 70 60 50 40 30 20 13 5 8 10 0 0 Quality Price Durablity Variety Any other Quality Price Durablity Variety Any otherCOMMENT: people in the surveyed area mostly preferred the quality of the brandinstead of price and durability. “DO YOU NORMALLY SWITCH OVER THE BRAND”
  38. 38. OPTION PERCENTAGE (%) FREQUENCY Yes 44 66 No 56 84 44% Yes No 56%COMMENT: Most of the people were not ready to switch over from their brand. “IS THERE ANY EFFECT OF ADVERTISEMENT ON SELECTION OF BRANDS”
  39. 39. OPTION PERCENTAGE (%) FREQUENCY Yes 69 104 No 31 46 PERCENTAGE(%)31% Yes No 69%
  40. 40. COMMENT: Advertisement plays a crucial role in the brand selection “WHAT KIND OF PROMOTIONAL TOOL YOU PREFER” OPTION PERCENTAGE (%) FREQUENCY Lucky coopen 11 14 Free gift 14 22 Discount 60 91 Buy one get one free 15 23 100 91 90 80 70 60 60 50 40 30 22 23 15 20 11 14 14 10 0 Lucky coopen Free Gift Discount Buy one get one free PERCENTAGE (%) FREQUENCY
  41. 41. COMMENT: Respondents were more inclined towards the discounts Package in companies promotional tools. “WILL YOU BUY PREFERED BRAND AT LOW COST OF NEGLIGIBLE QUALITY” OPTION PERCENTAGE (%) FREQUENCY Yes 23 34 No 77 116 77% 23% Yes NoCOMMENT: Most of the people do not want to leave their preferred Brand at the cost of“low prices”
  42. 42. OPTION PERCENTAGE (%) FREQUENCY Yes 52 79 No 48 71“IS THERE ANY IMPACT OF CELEBRITIES ON YOUR PURCHASING” 42% 58% Yes No
  43. 43. COMMENT: Celebrities have a special impact on the mind of the consumers that affectsthe purchasing sense of consumers.“WILL YOU PURCHASE ANOTHER BRAND OF SAME QALITY WITH LESS PRICE” OPTION PERCENTAGE (%) FREQUENCY Yes 70 106 No 30 44 30% 70% Yes No
  44. 44. COMMENT: Consumers look more brand loyal as they are not ready to leave theirbrand for other brand of same weightage. “DO YOU THINK WEIGHT IS A FACTOR FOR CHOOSING A BRAND” OPTION PERCENTAGE (%) FREQUENCY Yes 83 125 No 17 25 17% 83% Yes No
  45. 45. COMMENTS: weight proved its importance in purchasing of the shoe. Most of the userspreferred to wear lighter shoe. Suggestions & RecommendationResearch findingAFTER ASSESSING THE OVERALLMARKET SCENARIOS WHAT CAME IN PICTURE WASAS FOLLOWS:  CONSUMER REACTIONS SUGGESTS THAT NIKE IS THE MARKET LEADER AMONG ALL ITS CLOSE COUNTERPARTS IN THE SPORTS SHOE AND APPAREL SEGEMENTS.  34% MARKET CAPTURE IS STILL UNDER ITS KITTY.  AFTER ITS SPONSERSHIP TO MAJOR SPORTS EVENTS AND TEAMS LIKE SOCCER IN EUROPE AND CRICKET IN INDIA GIVE IT AN EXTRA EDGE.  PEOPLE ARE STILL EXPECTING SOME THING MORE FROM NIKE  ADIDAS IS CHASING ITS POSITION MOST AGGRESIVELY SO NOW IT REQUIRES MAINTAINING ITS POSITION WITH NEW STUFF.  28% customers are still pro adidas believer.  Nike has been the major competitor for adidas.  The new stuff of the adidas is attracting the consumers more which might led adidas at the top spot in the pack in coming financial year  CONSUMERS ARE NOT SHOWING THAT KIND OF CRAZE IN REEBOK FOR PAST FEW YEARS .
  46. 46.  PROBABLY IT COULD BE BECAUSE OF THE AGGRESSIVE ATTENTION SNATCHED BY BRANDS LIKE “NIKE” AND “ADIDAS” SPECIALY IN INDIA . ONLY 8% MARKET HAS BEEN COVERED BY REEBOK IN RECENT PAST. THAT IS MISERABLE AS PER ITS STANDARD REASONS BEING ITS RESTRICTIVE MANUFACTURING IN INDIA, AND THE COST OF THE PRODUCTS ARE NOT AFFORDABLE AS COMPARED TO EUROPEAN AND U.S MARKET Suggestion “THE BOTTOM LINE” OF THE MARKET RESEARCHSPEAKS THAT BRANDED SHOES IN INDIA HAS BEEN INCREASINSG ON DAY BY DAY BASIS.THAT SOUNDS GOOD FOR INTERNATIONAL AS WELL AS DOMESTIC MARKET.
  47. 47. ANNEXURE
  48. 48. QUESTIONNAIREQ.1 Do you prefer wearing sport shoes? (a) Yes  (b) No Q.2 Which brand you prefer? (a) Nike  (b) Adidas  (c) Reebok  (d) Action  (e) Any other Q.3 Are you satisfied with the quality of preferred brand? (a) Yes  (b) No Q.4 Are you satisfied with the price range of preferred brand? (a) Yes  (b) No  (c) No comment Q.5 If the price of your preferred brand increases will you purchase again? (a) Same brand  (b) Cheaper brand  (c) Any other brand Q.6 how do you consider the importance of sport shoes? (a) Comfort  (b) Price  (c) Durability  (d) Use in sport  (e) Any other Q.7 what factors influence you to go for a particular brand? (a) Quality  (b) Durability 
  49. 49. (c) Price  (d) Variety  (e) Any other Q.8 Do you normally switch over the brand? (a) Yes  (b) No Q.9 does the advertising play any role in selection of brands of shoes? (a) Yes  (b) No Q.10 what kind of promotional tool you prefer? (a) Lucky coupon  (b) Free gift  (c) Discount  (d) Buy one get onefree.Q.11 Are you willing to buy the preferred brand at lower price withnegligible quality? (a) Yes  (b) NoQ.12 is there any impact of celebrities on your purchase of sport shoes? (a) Yes  (b) NoQ.13 Will you purchase another brand of same quality with less price? (a) Yes  (b) NoQ.14 Do you think weight is a factor for choosing brand? (a) Yes  (b) No
  50. 50. PERSONAL INFORMATIONS:Name : Age: Gender:Address :Phone No. : E-mail:Occupation:Date : Thank You.
  51. 51. BIBLIOGRAPHY
  52. 52. BIBLIOGRAPHYThe lists of reference for the purpose of completing this marketingproject are as given below:BOOKS:Marketing Research By: G. C. BeriMarketing Research By: Boyd and StaschMarketing Management By: Philip KotlerINTERNET:www.google.com
  53. 53. www.bambooweb.comwww.wikipedia.com

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