A PROJECT REPORT ON Quot COMPARATIVE ANALYSIS ON CUSTOMER SATISFACTION TOWARDS NIKE AND ADIDAS Quot

A PROJECT REPORT ON
“COMPARATIVE ANALYSIS ON CUSTOMER SATISFACTION TOWARDS NIKE AND ADIDAS”
SUBMITTED TO:-
J.G. COLLEGE OF BUSINESS ADMINSTRATION
(GUJARAT UNIVERSITY)
SUBMITTED BY:-
DHARANI AASHI GAURAV
KOSHTI MAHIMA PRUTHVIRAJ
PATEL ARTH CHETANKUMAR
PATEL PARTH KALPESHBHAI
DAVE HEENA HITESHKUMAR
PANCHAL HELEE VINODKUMAR
CHOKSI SWATI PRASHANTBHAI
PAGDHAL NISHA RAJESHBHAI
PANCHAL KUSHAGRA
FEFAR RAHUL
GUIDED BY:-
PROF. HARDIK JOSHI
I

CERTIFICATE
This is to certify that the “Grand Project Report” based on the Comparative analysis of CUSTOMER
SATISFACTION TOWARDS NIKE AND ADIDAS is a bonafide work done by Group: B_ students of
Semester – 6 of this Institute. These Students have successfully completed their project in fulfillment of the
requirement for the completion of practical studies under my guidance.
This report has not been submitted either partly or fully to any other University or Institute for the
award of any degree or diploma.
I am sure that the experience gained during this project work will enable them to take similar
challenging projects in the future.
Date:
Place: Ahmedabad
External Dr. Paavan Pandit
Examiner Director
Faculty In-charge
JG INSTITUTE OF BUSINESS ADMINISTRATION
COLLEGE CODE: 576
(AFFILIATED TO GUJARAT UNIVERSITY)
II

GROUP B
SR.NO NAME OF THE
STUDENT
ROLL NO UNIVERSITY
ROLL NO.
SIGNATURE
1 DHARANI AASHI
GAURAV
737 04
2 KOSHTI MAHIMA
PRUTHIVIRAJ
776 182
3 PATEL ARTH
CHETANKUMAR
820 26
4 PATEL PARTH
KALPESHBHAI
835 257
5 DAVE HEENA
HITESHKUMAR
732 773
6 PANCHAL HELEE
VINODKUMAR
806 111
7 CHOKSI SWATI
PRASHNATBHAI
726 352
8 PAGDHAL NISHA
RAJESHBHAI
805 249
9 PANCHAL KUSHAGRA 781 816
10 FEFAR RAHUL 741 643
III

ACKNOWLEDGEMENT
First of all, we would like to express our thanks to our director Professor Paavan Pandit for giving us such a
wonderful opportunity to widen the horizons of our knowledge.
In no small measures, we would also like to gratefully thank to all those who gave us constructive suggestions
for the improvement of all the improvement of all aspect related to this project.
In particular, we would like to thank Professor Hardik Joshi, our research guide for his valuable suggestions
and guidance.
We also owe a deep sense of gratitude to other faculty members for their continuous encouragement.
Despite all efforts, we have no doubt that error and obscurities remain that afflict research project and for
which we are capable.
IV

PREFACE
The project study on CUSTOMER SATISFACTION THROUGH NIKE AND ADIDAS has been conducted
to observe the preferences of consumer. This system of education is highly appreciated as it provides the
students with an opportunity to acquaint them with the outside world. The practice work help the students to
view the real business world closely, which in terms widely influence their conception and perception.
In the project 300 respondents are selected for their perception regarding branded shoes. For this purpose
information is collected from some areas of Ahmedabad.
V

DECLARATION
We Hereby Declare That This Project Report titled COSTEMER SATISFACTION THROUGH NIKE AND
ADIDAS Submitted to the GUJARAT UNIVERSITY .Original Work done by us (GROUP B) under the
Guidance of Prof. Hardik Joshi.
The Information And Data Given In The Report Is Authentic To The Best Our Knowledge.
This Project Report Is Not Submitted To Any Other University Or Institution For The Award Of Any
Degree, Diploma Or Fellowship Or Published Any Time Before.
VI

1
CHAPTER 1
1.1 INTRODUCTION ON INDIAN ECONOMY
The economy of India is a developing mixed economy.]
It is the world's seventh-
largest economy by nominal GDP and the third-largest by purchasing power parity (PPP).
The country ranks 139th in per capita GDP (nominal) with $2,134 and 122nd in per capita
GDP (PPP) with $7,783 as of 2018. After the 1991 economic liberalisation, India achieved
6-7% average GDP growth annually. Since 2014 with the exception of 2017, India's
economy has been the world's fastest growing economy, surpassing China.
The long-term growth prospective of the Indian economy is positive due to its young
population, corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India topped the World Bank's growth
outlook for the first time in fiscal year 2015–16, during which the economy grew
7.6%. Despite previous reforms, economic growth is still significantly slowed by
bureaucracy, poor infrastructure, and inflexible labour laws (especially the inability to lay
off workers in a business slowdown).
Recent Developments
With the improvement in the economic scenario, there have been various investments in
various sectors of the economy. The M&A activity in India increased 53.3 per cent to US$
77.6 billion in 2017 while private equity (PE) deals reached US$ 24.4 billion. Some of the
important recent developments in Indian economy are as follows:
• Exports from India increased 15.48 per cent year-on-year to US$ 351.99 billion in April-
November 2018.
• Nikkei India Manufacturing Purchasing Managers’ Index (PMI) stood at 53.2 in December
2018, showing expansion in the sector.
• Income tax collection in the country reached Rs 2.50 lakh crore (US$ 35.88 billion) between
April-November 2018.
• Companies in India have raised around US$ 5.52 billion through Initial Public Offers (IPO)
in 2018 (up to November).
• India's Foreign Direct Investment (FDI) equity inflows reached US$ 389.60 billion between
April 2000 and June 2018, with maximum contribution from services, computer software
and hardware, telecommunications, construction, trading and automobiles.

2
• India's Index of Industrial Production (IIP) rose 5.6 per cent year-on-year in April-October
2018.
• Consumer Price Index (CPI) inflation rose moderated to 2.33 per cent in November 2018 from
3.38 per cent in October 2018. Around 10.8 million jobs were created in India in 2017.
• India has improved its ranking in the World Bank's Doing Business Report by 23 spots over
its 2017 ranking and is ranked 77 among 190 countries in 2019 edition of the report.
• India is expected to have 100,000 start-up’s by 2025, which will create employment for 3.25
million people and US$ 500 billion in value, as per Mr T V Mohan Das Pai, Chairman,
Manipal Global Education.
• The World Bank has stated that private investments in India is expected to grow by 8.8 per
cent in FY 2018-19 to overtake private consumption growth of 7.4 per cent, and thereby
drive the growth in India's gross domestic product (GDP) in FY 2018-19.
• India is expected to retain its position as the world’s leading recipient of remittances in 2018,
with total remittances touching US$ 80 billion, according to World Bank’s Migration and
Development Brief.1
1
Chapter 1 Mahindra .s & mathur Shodhganga.inflibnet.ac.in >bitstream

3
1.2 INTRODUCTION OF SPORTS AND FASHION INDSUTRY
Sportswear industry is a highly fragmented market, with loads of different brands competing.
Every company have to work hard to maintain their position in the market, even big brands
such as Nike or Adidas. Consumers are requesting more and more every day, so retailers are
in the obligation to innovate their products continuously and produce new styles.
As mentioned in the previous paragraph, the global sportswear industry is highly
competitive. Key players in this industry are, among
others, Reebok, Adidas, Puma and Nike. These key players are forced to apply growth
strategies to cover a larger market; such as partnerships, launch of products… For instance,
Adidas has signed a partnership agreement with Manchester United Football Club to
promote their products globally, which was a big help to strength the company position in
various countries.
Over the last few years, people in developing countries is getting more health conscious,
they go the gym, practice sport often… all that is translated in an increased of their physical
activity what produces a growth in the sports apparel industry. In this context, companies
are innovating their products (such as including lightweight products, breathable ones…) in
order to satisfy the increasing needs in the consumers.
Women, in particular, are becoming a strong consumer in the sportswear industry. For that
reason, companies are producing specific lines of products for women. Now, sport industry
is encouraging collaborations between sport brands and fashion industry in order to produce
new styles to cover the needs of the young and woman segment that are significantly growing
over the past years.2
2
“Social media and sports media” January 26https://shodhgangaotri.inflibnet.ac.in

4
1.3 INTRODUCTION TO SPORTS INDUSTRY
A sports industry is developing one of the biggest in the world. More & more people are
participating in sport & recreational activities throughout a wide spectrum of activities.
Indian sports goods retail industry has grown significantly over the years. Technology,
coupled with few government initiatives, leading to cost-effective production techniques,
would be the prerequisites for this highly evolving industry. The Indian sports goods
retailing sector is becoming intensely competitive, as more and more players are vying for
the same set of customers and is witnessing a radical transformation. The increase in the
number of retailers across the country indicates that sports industry will boom in a big way
in the near future. The new entrant in retailing in India signifies the beginning of retail
revolution. Retailing of Sports Goods Market in India is growing due to the rise in per capita
income, changing lifestyle, and consumer preferences. India has been a manufacturing hub
for various sports products and brands sourcing which has tremendously increased. Sports
is becoming increasingly important as a passive entertainment, both live and in the media.
The most popular "equipped' sport in India is cricket; next comes volleyball and racket
sports. Beyond these, sports equipment’s market is extremely fragmented. Home fitness
equipment’s is nearly second only to cricket in terms of consumer expenditure. As maximum
consumers of fitness equipment’s is by clubs and gyms. Consumers also spend more on
sportswear but their spending is exaggerated by the fashion for wearing sports clothing and
sports shoes as all-purpose leisurewear. As ever, a sport in the 21st century is a market full
of extremes. With markets throughout the world becoming increasingly more competitive,
market research is now on the main agenda of marketing the sports goods; it means
identifying customers and providing services of uncompromising quality in return for an
optimal profit on investments. Generally, a growing market is more desirable, not only there
is great sales potential but also usually easier to enter and build sales in a growing market
place. For very small firms, however, a large market can be a double edge sword. On the
positive side of course there is a potential for huge sales, negatively though larger firms with
well-established access to marketing channels and better financing might be tempered to
enter such an attractive market place. Sports Goods Sports Goods are defined as tangible,
physical products that offer benefits to consumers. Conversely, services are intangible, non-
physical products. Most sports products possess the characteristics of both goods and
services. Sports goods industry is comprised of all establishments primarily engaged in
retailing new sporting goods, health and fitness equipment’s, apparels or hosiery, sports
shoes various sports equipment’s and accessories which are sold by sports good retailers and
whole sellers. It is axiomatic that consumers participate in the activities for which they buy

5
various sports products; where as in some cases it may be in obverse condition people may
not buy products for participation; e.g. Tread - mill or Jogger may not be used at Health
clubs, Cricket Matting or Helmets may be shared by one or more teams. Table Tennis Table
may be borrowed or rented etc. None less in many sports events participating trends are
clearly correlated with consumer's products. One believes that sports product is a good,
service or any combination such (a) Product availability in the region, b) Geographic
location of the region, c) Economic condition of the sports participants, etc. are the few
points to be mentioned. Indian Retail Sector of sports goods India is a country having one of
the most unorganized sports goods retail markets. Traditionally it is a family’s livelihood,
with more than 90% retailers function in less than 500 square feet of shopping space
Purchasing power of Indian urban consumer is growing and branded merchandise in sports
are slowly becoming lifestyle products that are widely accepted. Indian sports goods retailers
need to take advantage of this growth and aim to grow, diversify and introduce new formats
and to face fierce competitive pressure they must come to recognize the value of building
their own stores as brands to reinforce their marketing positioning, to communicate quality
as well as value for money. No doubt Indian sports goods retail scene is booming and has
witnessed too many players in short time, crowding several categories without looking at
their core competencies, or having a well thought out branding strategy. Some retailers have
still been able to maintain their ground in the market in spite of the arrival of new entrants.
Consumer insights built over their years of experience in business is helping them to hold
the fort against the onslaught of the new players on the horizon. Researcher quotes that
“Consumers also now play games with retailers – sitting tight and waiting for the discounts
to come. Because purchases are not necessities as they have more choice about when they
buy.”
Dec 20, 2018 (Herald keeper via COMTEX) -- Athletic Footwear Market size was USD 80
billion in 2015 and is forecast to grow at approximately 3% CAGR from 2016 to 2023.
Global shipments were over 3.5 billion units in 2015.
The industry is segmented by consumer groups, category, and retail channel. Consumer
groups include men, women and kids. Category wise classification mainly comprises inserts
used in aerobics, running, walking shoes, and at leisure. This segment accounted for nearly
35% of the global athletic footwear market size, with CAGR estimations of 1.7% from 2016
to 2023. Other categories include sports, which contains products suited for various sports
such as baseball, basketball, soccer, tennis, cricket, etc. This application area occupied
majority of the overall volume share in 2015. Hiking includes trekking and walking boots,
rugged footwear, mountaineering shoes, specialty boots, and seasonal boots.

6
Class-based fitness on account of growing social fitness trend is forecast to drive at leisure
segment and open new opportunities for companies operating in the industry. Retail channel
is divided into store based, which includes discount stores, departmental stores and channels,
specialty stores, franchise, and sports and athletic goods stores. Non store based segment
includes distribution via the internet, catalogues, and teleshopping.
The ecosystem is dominated by five leading brands that collectively account for around 80%
of the global athletic footwear market share. Major players are Reebok, Puma, Nike, Adidas,
Asics, New Balance Sketcher’s, Converse, Vans, and Saucony.
Nike, Adidas, and Asics led the industry in 2015. The key strategies adopted by these players
are more number of retail outlets, large global customer base, and strong distribution
channel. Consumers' inclination for brands differs on the basis of region, For example, Asics
and Puma dominate the European industry, and while U.S. based companies VF Corp.,
sketchers, and New Balance have strong presence in North America.
The key deciding factors for gaining profitability and competitive advantage are enhancing
R&D capabilities, building strong brand equity, strong capital resources and efficient
network management which will help companies to stay ahead in the competition.
He athletic footwear market incorporates sportswear, trekking shoes, aerobics shoes,
walking shoes, and running shoes. Increased awareness regarding healthy lifestyle that
motivates people to engage into some kind of sports activity will drive the industry in the
coming years. This motivated the leading brands to come up with innovative and
comfortable sports footwear products. Growth in wholesale and retail business, efficient
supply chain, consumers' willingness and increased purchasing power have fuelled the
global athletic footwear market.
Presently, men's athletic footwear market captures about 60% of overall revenue generated.
Women's footwear accounts for around 25% share, with the rest occupied by products for
children, which are estimated to witness rapid revenue growth.
Asia Pacific athletic footwear market share was approximately 40% in 2015, with the region
expected to continue dominating global industry revenue through the forecast timeframe.
Europe is also forecast to remain a sizable regional industry in the coming years. U.S. athletic
footwear market size is expected to grow at slower pace, due to being high labour and
material cost and strong competition.
Major driving forces for growth are increase in disposable income in developing economies,
growing global population, rapidly spreading awareness about health and fitness, and the
corresponding rise in demand for comfortable, innovative and affordable products. The

7
increasing popularity of sports events such as the Olympics, FIFA World Cup, ICC World
Cup, etc. has accelerated athletic footwear market.
Counterfeiting of products offered by global brands, strong competition from local
manufacturers, sensitivity to seasonal changes, and evolving consumer preferences may
hinder growth. The middle class population is price sensitive in nature, which may bring
down overall revenue. Rise in prices of synthetic rubber, which is used as a major raw
material will result in increasing athletic footwear market price trend.
The post Athletic Footwear Market 2023| Reebok, Puma, Nike, Adidas, Asics, New Balance
sketcher’s, Converse, Vans, and Saucony. Appeared first on Herald Keeper.
The post Athletic Footwear Market 2023| Reebok, Puma, Nike, Adidas, Asics, New Balance
sketcher’s, Converse, Vans, and Saucony. Appeared first on Herald Keeper. The above pie
chart shows the graphical representation of the market share of different companies of the
industry which proves that Nike holds the maximum share in the market.3
3
“west Virginia university “Fitpublishing.com > fosm-small excerpt

8
1.4 SNEAKER WAR: BATTLE BETWEEN NIKE AND ADIDAS
For decades it’s looked like no company could ever topple Nike, the $86 billion global
sneaker juggernaut. But just across town from ultra-secretive Nike HQ in Oregon, Adidas
has suddenly mounted a full-scale arms race, poaching designers, signing superstar
endorsements, and unveiling space-age technology in an attempt to dethrone the king.
Matthew Shaer reports on the bitter battle over the right to dress your feet. Everybody wants
the Yeezys. It's a frigid February night during New York Fashion Week, and Kanye West
has just spent the afternoon at a runway event in SoHo unveiling his first fashion collection
for Adidas—a collection anchored by the futuristic Yeezy Boost 750s, a.k.a. the Yeezys,
a.k.a. suede high-top sneakers that look straight out of the Star Wars props department,
complete with side zips and patented springy soles made from spaceship-grade foam. And
now here comes Kanye, clambering onto a purpose-built stage at the intersection of
Broadway and Fifth Avenue, in the shadow of the Flatiron Building, at an event that's been
billed as a concert but feels closer to a product launch. Ten thousand people have shown
up tonight, many claiming their tickets with an Adidas app and the rest waiting untold
hours in temperatures that barely top 15 degrees, the cold compounded by gut-punches of
snowy wind barrelling off the East River.
“We ain't even gonna mention that other company no more, right?” Kanye asks the crowd.
“We ain't wearing that other company no more, right?”
That other company, of course, is Nike—not only the most popular sneaker manufacturer
but the single most valuable apparel brand in the world. Nike has 57,000 employees and a
market cap north of $86 billion. And in these halcyon days of sneaker culture—the once
humble sneaker having become the focal point of personal style—Nike has a heritage that
consumers respect and that its competitors can't buy.4
4
“Matthew shaer’s last article for GQ The orthodox Hit squad”www.gq.com

9
1.5 CUSTOMER SATISFACTION
Customer satisfaction is a term frequently used in marketing is a measure of how products
and service supplied by a company meet customer expectations. Customer satisfaction is
defined as the number of customer or percentage of total customers whose reported
experience with firm, its products or its services exceeds specified satisfaction goals. In a
survey of nearly 200 senior marketing manages, 70% responded that they found a customer
satisfaction matric very useful in managing and monitoring there businesses.
It is seen as key performance indicator within business and is often part of balanced
scorecard. In a competitive market place where businesses compete for customers,
customer’s satisfaction is as a key differentiator and increasingly has become key element
of business strategy.
What is Customer Satisfaction?
Business always starts and closes with customers and hence the customers must be treated
as the King of the market. All the business enhancements, profit, status, image etc of the
organization depends on customers. Hence it is important for all the organizations to meet
all the customers’ expectations and identify that they are satisfied customer.
Customer satisfaction is the measure of how the needs and responses are collaborated and
delivered to excel customer expectation. It can only be attained if the customer has an overall
good relationship with the supplier. In today’s competitive business marketplace, customer
satisfaction is an important performance exponent and basic differentiator of business
strategies. Hence, the more is customer satisfaction; more is the business and the bonding
with customer.
Customer satisfaction is a part of customer’s experience that exposes a supplier’s behavior
on customer’s expectation. It also depends on how efficiently it is managed and how
promptly services are provided. This satisfaction could be related to various business aspects
like marketing, product manufacturing, engineering, quality of products and services,
responses customer’s problems and queries, completion of project, post delivery services,
complaint management etc.5
5
https://en.m.wikipedia.org > wiki > org

10
1.5.1Importance of consumer satisfaction
Customer satisfaction provides a leading indicator of consumer purchase intention and
loyalty. Customer satisfaction data are among the most frequently collected indicators of
market perceptions. Their principal use is twofold:
• within organizations ,the collection ,analysis and dissemination of these data send a
• Message about the importance of tending to customers and ensuring that they have a
• Positive experience with the company’
s goods and services.
• Although sales or market share can indicate how well a firm is performing currently
• Satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will
• A Loyal customer is a treasure you should keep and hide from the world
• They can stop being your clients in a heartbeat
• It’s (all) about the money, too
• Customer satisfaction is a factor that helps you stand out of the competition.
• Great customer experience can take your brand places

11
1.5.2 Types of consumer satisfaction
Customer satisfaction is key component of a good business, and the only way to accurately
gauge customer satisfaction is using some type of customer satisfaction measurement, often
a survey. Surveys allow your business to learn from hoe the actual customer is experiencing
your business, rather than simply relying on what your subjective eyes and cars tell you.
Customer satisfaction surveys come in several different shapes and styles, and most
companies come up with their own unique way of gauging satisfaction accurately.
Satisfaction for an insurance company, for example, may not be same as satisfaction at a
grocery store. The type of business, client list, etc., all change satisfaction. Yet in general,
most surveys fall under two categories:
• Direct Transaction Surveys
This type of customer satisfaction survey is immediate, and is designed to gauge how the
customer viewed a very specific transaction – namely, the transaction that (hopefully)
immediately preceded filling out the survey. These surveys are not necessarily interested in
your overall opinion of the company. They are primarily concerned with your most recent
transaction.
• Overall Satisfaction Surveys
Sometimes referred to as “relationship surveys,” these surveys are designed to gauge how
the customer feel about the company in general, based on a combination of all of their
experiences and any additional factors that may affect that result.
• Causes of consumer satisfaction
Satisfaction or dissatisfaction of consumer are not easily assessed by the manufacturer or
service provider, because it is abstract and intangible. The cause was very much.
So it is very difficult to satisfy consumers. But it must still exist efforts to achieve customer
satisfaction. Following the identification of the casual factors of customer satisfaction:
• Hope
Expectation are formed first before making a purchase. This component is a sought after
consumers about the benefits of your products or services in performing their duties. These
consumers form expectations based on the experience of the use of such products or services,
word of mouth communications, marketing activities of the company.6
6
“Farris, Paul w.2010 Fit small business.com

12
1.6. NIKE AND ADIDAS
The clash between two of the world’s biggest athletic shoe brands is no secret. Nike and
Adidas do not get along, and their competition to claim the two biggest sneaker markets in
the world, the United States and China, has gotten so heated that some have even called their
faceoff a war.
Both are great brands, but there are a number of reasons Adidas is the clear winner.
Before we even get into it, just look at the roster of well-known names that endorse Adidas.
Current all-star athletes such as Ricky Rubio, Omar Gonzalez, BJ Upton, Harrison Barnes,
Dwight Howard, Damian Lillard, and John Wall all wear Adidas and swear by them. Even
celebrity icons Kanye West and Selena Gomez have jumped on the Adidas bandwagon.
But let’s be honest. It’s not just the people that wear Adidas shoes that make it a great brand.
It’s the shoes themselves.

13
CHAPTER: 2
2.1 Adidas
In the small German village of Herzogenaurach the world began its love affair with Adidas
(Ryno’s Company History). In 1920, Adolf “Adi” Dassler brought to life those three little
strips. With his brother, Rudolph, Dassler manufactured his first sports shoe, made for
training, after realizing the need for performance athletic shoes. In 1948 the Dassler brothers
separated to form their own two separate companies. Dassler formed Adidas and his brother
formed puma, both headquarters in Herzogenaurach.
The Adidas mission has changed little since founder Adi Dassler began making sports shoes
in the 1920s: to be the best sports brand in the world. The history of Adidas is one of
consistently meeting the evolving needs of the athlete. Focusing more on function and less
on fashion, Adidas strives to provide athletes with shoes that can make a noticeable
difference in their performance. Meeting athlete needs is what makes Adidas the best. Adidas
America has continued to build on this history.
In February of 1993, Adidas acquired sports Inc., a US-based sports marketing company
founded by former Nike executives Rob Strasser and Peter Moore. Sports Inc. had been
working in conjunction with Adidas USA on the design, development, and marketing of the
Adidas Equipment line. This line helped rejuvenate and reposition the Adidas brand in the
United States by creating an exclusive line focused on fulfilling the functional needs of the
athlete and by utilizing the best materials and athlete input in the tradition of Adi Dassler. It
offered moisture management, thermal insulation, weather protection, ease of movement,
and safety, helping the athlete to perform more efficiently. After the successful creation and
launch of Adidas America.7
7
“ADIDAS – statregy overview” adidas group 27th
September”https://en.m. Wikipedia.org > wiki > Adidas

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FORMELY Dassler Brothers Shoe Factory
TRADED AS FWB, ADS DAX Component
INDUSTRY Apparel, accessories
FOUNDED Jul94 years 1924, ago
FOUNDER Adolf Dassler
HEADQUARTERS Herzogenaurach, Germany
AREA SERVED Worldwide
KEY PEOPLE Igor Landau, Chairman,Kasper
Rerated, CEO
PRODUCTS Footwear, sportswear, sports
equipment, toiletries
REVENUE Increase€21.218 billion (2017)
OPERATING INCOME Increase€1.5 billion (2016)
NET INCOME Increase€0.72 billion (2015)
TOTAL ASSETS Increase€13.34 billion (2015)
TOTAL EQUITY Increase€5.66 billion (2015)
NUMBER OF
EMPLOYEES
56,888 (2017)
WEBSITE www.adidas-group.com

15
2.2 Nike
Nike produces 90 million pairs of sports shoes every year. In 1998 revenue increased by 4%
to record $9.billion, after revenue increase of 42% and 36% respectively in the two preceding
years. Nike is still the number one produces of sports shoes, with Adidas close behind. Nike
is not only the biggest producer of sports shoes, but also spends the largest amount of money
on advertising and promotion. In 1998 the company spent $1.13 billion for this purpose.
Famous sportsman such as Michael Jardan, Andrew Ages and Tiger woods have their names
linked with NIKE products and received respectively $45 million, $10 million and $28
million in endorsements in 1998. The company designs and products shoes for just about
every sport. Nike’s presence in soccer (being the world’s biggest sports) became stronger
after entering into new partnerships with top European club teams such as FC Barcelona and
AC Milan. At the 1998 world cup, six teams (Brazil, Holland, Italy, Nigeria, South Korea
and the US of A) competed in the Dutch sauces association KNVB, and the Dutch team will
be playing with the swoosh on their shirts until 2009, for about 10 million guilders a years.
Ever since the day 1971 when university of Oregon track coach Bill Bower man poured
rubber into his wife’s waffle iron, technological innovation has been the driving force behind
Nike’s success. Coach Bower man figured that every ounce he shaved of a miler’s shoe
would result in 200 fewer pounds lifted over the distance. His lightweight waffle sole
become the foundation of Nike and revolutionized and entire industry.
Bower man’s waffle sole set stage for an unrivalled tradition of innovation.8
8
“null.” Nike – pg 16 forbes retrived 2017 – 09 27https://en.m.wiki > org.

16
FORMELY Blue Ribbon Sports (1964–1971)
TYPE Public
TRADED AS NYSE NKE (Class B),DJIA component, S&P
100 component
S&P 500 component
INDUSTRY Apparel, Accessories
Sports equipment
FOUNDED January 25, 1964; 55 years ago
FOUNDER Bill Bowerman,Phil Knight
HEADQUARTERS Washington County, Oregon, U.S.(Near
Beaverton, Oregon)
AREA SERVED Worldwide
KEY PEOPLE Phil Knight (Chairman Emeritus) Mark Parker
(Chairman, President, & CEO) Andrew Campion
(CFO)
PRODUCTS Athletic footwear & apparel Athletic &
recreational products Sports equipment
REVENUE
INCREASE
Increase US$ 34.35 billion (2017)
OPERATING
INCOME
Increase US$ 4.95 billion (2017)
NET INCOME Increase US$ 4.24 billion (2017)
TOTAL ASSETS Increase US$ 23.26 billion (2017)
TOTAL EQUITY Increase US$ 12.41 billion (2017)
NUMBER OF
EMPLYOEES
74,400 (2017)
WEBSITE Nike.com

17
2.3 Comparative analysis between Nike and Adidas
Both companies produce practically identical product lines of sport footwear, apparel and
equipment. They propose pretty the same services, for instance, personalization of sneakers
and clothes, gadgets, applications.
As for the score in Global Brand Simplicity Index* in 2013, Nike took #27 and Adidas
ranking was #33.
Nike and Adidas have quite similar marketing strategies, but their methods of
implementation are different. Nike focuses more on North American market, whereas
Adidas is more presented on European one. Nike does not have any production plants, they
outsource to Asia, mainly Taiwan and Korea. Adidas executes its products in Germany, and
just recently started to pass some sourcing to Asian countries.
One of the key factors of Nike’s marketing campaign is to sponsor popular sportsmen and
teams, such sport celebrities as Cristiano Ronaldo, Rafael Nadal and a football team
Manchester United etc. As they are extremely popular worldwide, it encourages Nike’s sales
to go up.
Adidas sponsoring is about big events and organizations, for instance, FIFA, EUFA
Champions League and Summer Olympics.
Nike proposes clothes, shoes and accessories for running, skateboard, football, basketball,
training, tennis, golf, American football and snowboarding. Anyhow their main target
markets are basketball and running. Nike’s markets used to be domestic (USA), but in recent
years they expanded internationally.
Adidas offers everything for football, running, basketball, training, golf, rugby, natation and
tennis. Key markets are soccer and tennis. They are always based in Europe and well known
internationally.9
9
Scribd project uploaded by anuvenu1606

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2.4 SWOT ANALYSIS OF NIKE
STRENGTHS
Worlds No1 shoemaker. It design
and sells shoes for a variety of
sports shoe. Nice has strong r&d
as is evidenced by its evoluing and
innovative product range. Nike as
a global brand in the world, its
famous smoosh is instantly
rewagnizable.
WEAKNESS
The income of the business is
still heavily dependent upon its
share on the footwear market.
This may leave it unnearable if for
any reason its market shares
erods.
OPPORTUNITY
Product development offers Nike
many opportunity although of the
brand is fiercely defended by its
owners when truly believe that
Nike is not a fashion brand ,
however consumers who wear
Nike product do not always buy it
to participate in sport In youth
culture especially, Nike is
considered to be a fashion brand
this creates its own opportunities.
THREAT
Nike is exposed to the
international nature of trade. It
buys and sells in different
currencies and so costs and
margins are not stable over long
periods of time. Such an exposure
could mean that Nike may be
manufacturing and / or selling at a
loss. This is an issue that faces all
global brands.

19
2.5 SWOT ANALYSIS OF ADIDAS
Strengths
Adidas has travelled a long
way to establish itself as a
youthful brand. If has multiple
product portfolio with varied
range of footwear &
accessories under brand
name adidas.
Weakness
Due to higher prices as a
reasons of innovative
technology and production
method, the brand is
affordable to limited
customer only in developing
region specially.
Opportunity
entering intonew market will
be the only way to succed in
future because develpoed
economics already have
hugh competiton
Threats
Although Adidas is a global
brand but it is facing fierce
competition from other
brands like Nike which is No.1
brand and Adidas being in 2nd
position in this premium
segment from local players,
substitutes and market
penetrators.

20
2.6. Ratio analysis of Nike and Adidas
Ratio Nike Adidas
Current ratio 2,52 1,68
Quick ratio 1,47 0,92
GP Margin 45,97% 47,60%
OP Margin 13,64% 6,10%
NP Margin 10,70% 3,37%
Inventory
turnover
3,77 2,95
Debt/Equity 0,08 0,28
Return on
equity
27,82% 8,82%
Share price 41,08 31,22
P#E Ratio 34,81 26,46

21
2.7Comparison of the strategies of the companies
2.7.1Strategies of Nike:
In order to become the world’s leading designer, marketer and distributor of athletic
footwear, apparel and accessories, Nike followed many strategies. Their corporate level
strategy, according to Dermesropian, Drage, Grigaite and Lopez (2004,p.15) is their focus
on innovation and emphasis on their research and development department in order to be
profitable in the long run and they do their best to produce footwear, apparel and athletic
equipment that reduce or eliminate injury, help in athletic performance and maximize
comfort. They continue to expand their operation in the USA, Asia Pacific, Europe, Middle
East, Africa and the American regions trying to reach as many customers as possible. Their
business level strategy is a combination of the best cost provider and broad differentiation
strategy, but more emphasis is put on the best cost provider strategy. They rely heavily on
strategic out sourcing and most of their products are manufactured outside the United States.
One of the main reasons behind their success following the cost leadership strategy is their
extensive network structure that allows them to cancel their alliance with any company that
fails to maintain their standards. They work very closely with their suppliers which allow
them to produce their goods at a very low price and of superior quality with the newest
technology which makes them the market leader and the rest have to try producing similar
goods close to their standard in order to survive in the market. They work very hard in their
marketing strategies and which one of the primary reasons behind its success.
Nike hired famous basketball player Michael Jordan, tennis player Serena Williams and Ti
gr Woodswho signed a seven year contract in order to be the spokesperson of Nike. In 2003
they spent around US$32.4 million on Net TV commercials and another US$ 39.8 for
magazine ads. In order to become the market leader one has to follow a rigid and innovative
strategy but to remain as the market leader the strategy has to be sustainable. According to
(www.bizjournals.com) on a report published by Nike, suggest that they have planned five
major programs in order to keep their corporate level strategy sustainable. In order to sustain
in the long run Nike is now emphasizing more on the concerns about global warming. They
have decided to focus more on their product design process, eliminating toxics and wastes
wherever possible, start a Green change web marketplace to share intellectual property
which have been designed to act as a catalyst in green development, establish a lean
manufacturing and human resource management in order to acquire a more equitable supply
chain, establish a social program which combines education and sports programs for the
third world countries and establish a new group call the Business for Innovative Climate
and Energy Policy.

22
2.7.2Strategies of Adidas:
The strategies of both these sports giants are very similar but Adidas focuses more the broad
differentiation strategy. According to (www.adidas-group.com) the corporate level strategy
of Adidas also focuses on innovation, trying to produce new products, services and processes
in order to cope up with the competition. In 2009 the Adidas Group strategically decided to
move from a vertically integrated brand structure into a functional multi-rand structure for
the Reebok and Adidas brands. This created a global sales function which were responsible
for commercial activities and a global brands function which were responsible for the
marketing of both brands. The global sales function was also split into two departments,
wholesale and retail, which catered to the various needs of both these business models. This
was done in order to sustain their corporate level strategy for the long run so that these
divisions could emphasize and work hard in their respective departments in order to make
the most of their efforts. This led to the elimination of regional headquarters and moved
towards more direct communication between the local markets and the global functions.
They implemented a multi-brand strategy by having a diverse brand portfolio which allowed
them to cater all segments of the market from players to almost everyone. This helped them
to keep a unique identity and concentrate on their core competencies. Adidas focused their
investments in the best marketing and distribution channels in different countries by
critically evaluating the consumer buying behaviours’ and their constant struggle to secure
prime shelf space. They have also embraced e-commerce in order to become more efficient
and appeal to more customers and make purchasing much more easily accessible for them.
Their supply chain is closely communicated and hence it helps them to customize their
products which appeal to a wide range of customers. The organizational culture of Adidas
group obligates employees to be innovative. This culture forces them to produce goods
which are highly innovative and with the use of the latest technology their products have a
very good quality. According to (ar2001.adidas-salomon.com) using latest technologies they
produce products which enhances performances of players and they focus on sports such as
football, tennis, basketball and even training shoes which are used by anyone with the ability
to run. Their new technologies have led to the production of Climacool, a shoe with a
ventilation system and a shoe with an energy management system that guides and drives an
athlete’s foot through each stride. Adidas has world class players who wear their products
such as Zinedine Zidane of France, AlessandroDel Piero of Italy and Kobe Bryant an NBA
champion who is a style icon for basketball lovers. They also concentrate on their classic
items, reintroduce and redesign them under their Trefoil logo.10
10
Posted on Wednesday November 22 2017 news by Charlie white https://www.samford.edu

23
2.8Future Plans of Nike and Adidas:
It is easy to become the market leader or the market challenger for organisations but
sustainability is the primary concern and hence organisations focus of the sustainability by
coming up with strategies that will make their position sustainable in the long run. According
to (www.environmentalleader.com) Nike’s future plans are to focus on the environment and
production of eco-friendly products. They mentioned in their 2005 and 2006 Corporate
Responsibility Report that they will become carbon neutral by 2011 by reducing their Caron
Dioxide emissions. They have decided to design all Nike brand footwear in ways through
which they can reduce waste production during product design and packaging. They will
eliminate the use of volatile organic compounds and use more environmental friendly
material in their products and be carbon neutral by 2011. Adidas on the other hand became
the official sportswear partner of the London 2012 Olympic Games. The London Organising
committee for the Olympic Games and Paralympic Games (LOGOC) has few regulations
which all of its partners are obligated to follow. These obligations are focused towards the
environment. Adidas, being a partner of LOGOC has to follow all these regulations as their
future plans are to be the official sponsor of almost all major events in the world, and in
order to achieve this goal their strategy is to produce environment friendly goods as well.
They have to ensure that all their products are produced with environment friendly materials,
which would protect the human health and the environment and their packaging should also
be produced with materials that can be recycled. Hence we can see that both the future plans
of Nike and Adidas are quite similar.11
11
Geoffrion A & KRISHNAN (2003)https://www.businessinsider.com

24
CHAPTER 3
3.1 Literature review
1. Wembo Cui (2011) consumer based brand equity in Chinese sports market
A study of examine of practicality and application of a customer based equity model in the
`Chinese sportswear market. This study collected data from consumers from Chinas 2 largest
cities Beijing and shanghai. Based on Aakers concept of frame of brand equity it studied
causal relationship among the four dimensions of brand equity and overall brand equity in
sportswear industry weak support was fond of the perceived quality and brand aware that
the brand managers and marketing planners should considered the relative importance of
brand equity in their overall brand equity evaluation and should concentrate their effort
primarily on building brand loyalty and image. This study basically provides important
insight about understanding of Chinese consumer perception of overall brand equity and its
dimension.
2. D mello (2003) report based on brand experiences
In addition to the analysis six further studies were conducted to prove the reliability of the
scale brand experience of customer intensity over the preference of their choice among four
or five items and then select one product and compare that product to the other brand.
Comparison is basically about the experience of customers for using the product and
satisfaction over the product.
3. choice and James (1996) report based on customers prefrence
The consumer behaviour aims at analysing how consumers act on a market or on a special
industry. According to the consumer behaviour specificities of the consumer behaviour in
the sportswear industry. This review provides insight of consumers, their motives, their
choice, their decisions and their differences. The outcomes of the analysis identify two
different behaviours towards sportswear products: consumption for the practise and the
consumption for everyday life. These two types of consumptions presents similarities but
also points of divergence. This basically can represent a tool for sportswear firms as a clear
analysis of their target or those who can create a target as well.
4. Bethuel kinyanjui kinuthia (2009)customer satisfaction purchasing branded shoes in
Malaysia
This study basically investigates on the relationship of brand equity and customer
satisfaction purchasing branded shoes in Malaysia. Customers are being increasingly
important in the lives of most of the business organisations as competition increases hence

25
many companies begin to recognize the importance of retaining current customers and some
have initiated various activities to create customer loyalty. Customer was examined by a
quantitative method of surveying by questionnaire from 205 respondents. From this survey
the relation between brand equity, customer satisfaction and customer loyalty was
established. It concluded that customer satisfaction is the antecedent of customer loyalty,
although influence of brand equity was less significant the result still shows a positive score
for brand equity.
5. Preeti Mehra (2010) consumer satisfaction over purchase of branded shoes
The study offers and validates a comprehensive approach to explain factors influencing the
attitude of respondents towards various characteristics of branded sports shoes. In order to
attain this objectives a sample of 322 respondents belonging to three cities of Punjab;
Jalandhar, Amritsar and Ludhiana, was drawn, non-probability convenient sampling adopted
for selecting the respondents. It was however, found that brand loyal preferred buying shoes
of their fancied companies whereas innovator’s preferred shoes with the latest state of the
art trends and technologies. Consumers desired sport shoes to be colourful and stylish and
happened to relate traits of shoes to their personality.
6. Rajdeep Singh (2016) study based on brand loyalty in footwear industry
The dynamic competitive environment has changed the way the businesses were run in the
past. The increased awareness of the customers along with increase in the number of options
Available to them as completely revolutionized the marketing task. In the current scenario a
great need is felt for long term relationships with the customers so as to enjoy repeat sales.
The business organizations these days are laying focus on enhancing the brand loyalty
among the consumers to reap the benefits of repeat sales. The present study, therefor, is an
endeavour to investigate the factors that affect brand loyalty in the footwear industry.
Simultaneously an attempt has been made to identify the most sought after brand in the
footwear industry. A sample of 100 respondents was selected from the Ludhiana region.
Statistical techniques of correlation and multivariable regression were used. The result
depicted that out of the total fourteen identified factor had significant relationship with brand
loyalty. Proper pricing techniques and customer satisfaction were the dominant variables in
affecting brand loyalty a footwear brand.
7. Bale el al (1981) fall of US footwear sector
The study by bale el al explores the reasons behind the fall of the US footwear sector and its
emergence as major importer of non-rubber footwear. The industry has decline in terms of

26
output, number of firms and employment and therefore the imports has increased
considerably. Over the period of years the wage rate have increased tremendously that has
led to decrease in productivity as against the foreign countries especially the developing ones
which enjoy pool of low cost labour.
8. Prof. Gill (2009) report based on branding strategy of Nike & Adidas
Prof. Gill has been stipulated in their project report that the branding strategies of NIKE and
ADIDAS focusing on products splitting by sport and training. While the later focusing on
football, running, training and the outdoors. The new perception of sportswear as leisure or
everyday clothing is something for athletics supreme to capitalize on much like lulu lemon
and fable tics by actress kale Hudson. This new field could lead to success. A 2009 study by
cotton incorporated showed that 80 percent of people interviewed use sport clothes for
everyday life and not just during sport performance or undertaking physical activity. The
literature show that consumer have shifted towards the duality of athletic wear being for both
physical activity and even relaxing.
9. Prof. Gill (2009) report based on branding strategy of Nike & Adidas
Prof. Smith may have been observed that in relation to consumer and perception of
sportswear, it is important to understand the culture impact and personality of fashion
globally. Because fashion is representation of personality, style, preference when combined
with sportswear .it represent an active lifestyle and present the assumption that one is
concern with his or her physical well-being and striving for a better quality of life. Consumer
motivations for purchasing sportswear, especially for its versatile use of being available to
be worn casually and for athletic participation.
10. Prof. Richard (2007) report based on customer loyalty
Prof. Richard has been observe that developing customer loyalty is almost important for
every company as new fresh customer acquisition alone will not ensure long term success.
Reicheld was one of the first to propose that companies should put more effort in customer
retention as oppose to acquisition Along with W.E. SASSER.He affirmed that customer
retention is major driver of company profits. This appears to be reasonable given that the
well versed marketing axioms. Indicated by Preifer. It costs five times more to acquire a new
customer than to retain an existing one.
11. Jacoby & Kyner (1973) report based on brand loyalty
In general, loyalty is shown by different propensities toward the brand, store or service.
Typically, customer loyalty means the property of customer to repeatedly purchase specific
subject (brand, product, service, shop, etc.) with affection regardless of the change in the
circumstances. However previous researches have yet not formulated a universal definition

27
of customer loyalty upon which everyone agrees. Over the years, there were debates focused
around what customer loyalty actually is, as majumdar states, customer loyalty is complex,
multidimensional concept. One widely accepted explanation of loyalty is by Jacoby and
Kyner (1973), describing it as the biased, behavioural response, carried out over time, by
some decision making unit, towards one or more alternative brands in a same category and
is a part of psychological process. Pick apart similar definition ‘customer loyalty is viewed
as the strength of the relationship between individuals relative attitude and their repeat
patronage, by based only on three phase, situation influences, explicating the situation of
action qualified by adding the fourth phase, situational influences explicating situation of
qualified by commitment, predisposition in favour of something and consistency while
recognizing the nature of the marketing environment.
12. Cyert (1956) customer buying behaviour towards branded casual shoes.
Cyert (1956) may have been first to observe that a number of managers involved in buying
process. And the concept was labelled Buying behaviour and popularized by Robin son.
Webster and wind famously identified five buying roles, they are 1. Users, 2. Influencer, 3.
Buyer, 4. Decider and 5. Gatekeeper. The product purchase decision is not always done by
the user. The buyer necessarily purchase the product marketers must decide at whom to
behaviour, they are able to predict how customer are likely to react various informational
and environment cues and are able to shape their marketing strategies accordingly (Kotler
1994)
13. Amit Jain (2012) market comparison on Nike and Adidas
Amit Jain may has been observe that satisfied customers are most likely to share their
experiences with other people to the order of perhaps five six people. Equally well,
dissatisfied customers are more likely to tell another ten people of their unfortunate
experience. Furthermore they conclude that it is important to realize that many customers
will not complain and this will differ from one industry sector to another. Lastly, if people
believe dealing with customer satisfaction complaint is costly, they need to realize that it
costs a much as 25 percent more to recruit new customer.
14. Heasun (2010) exploitation of labour in footwear firm
Heasun (2010) focuses on the pressure exerted by media, government and public for
exploitation of labour in the clothing and footwear firms. As it was evident in the cases of
Walmart and Nike for which they became infamous in the 1990’s in United States, Therefore
in order to incorporate fair labour practices, government and industry coalitions were
formed. The author observes in his study that with accelerated pace of globalisation in

28
clothing and footwear the vulnerability to competitive pressure increases and therefore sweat
shop risks shall also increase.
15. Troy (2000) customer satisfaction based on product quality
The study by Troy stipulates the need for appropriate Footwear as they are more than just
shoes. According to the author shoes give identity and image and also the symbol of Shoes
Company increases the status of Shoes Company. The managers should realize that their
customers demand will continue to increase. So the symbols and brand logo of Nike and
Adidas attract consumers and increase their product sale by media, internet, advertisement
and all. Customers satisfaction needs are not meet by only brand name but also buy quality
of product. Also there are different type of shoes choices like in sports shoes (gym shoes,
jogging shoes or any other game shoes) etc.
16. Celuch (2004) customer satisfaction based on brand loyalty
According to the findings by Taylor, Celuch, & Goodwin (2004), brand equity appear as one
of the most influential influences on both behavioural and attitudinal loyalty. Besides
building on long term customer loyalty, besides building on long term customer loyalty,
organizations putting effort in achieving high brand can produce difference advantages.
Although previous researcher and recurrently researched on customer loyalty, yet the
fundamental of its formation are still remained uncertain, even if numerous antecedents have
been named. Among these antecedents, both scholars and practitioners have attributed
peculiar credit to customer satisfaction, announcing it as another main antecedent of loyalty
(Bodet, 2008). Referring to Oliva et al.’s study, minor change in satisfaction can lead to a
substantial change in loyalty increment {as cites in Bowen & Chen, 2001}. Hence, further
implicate that customer satisfaction is one of the ante cent of customer loyalty.
17. Martinez (2010) outsourcing decision in Spanish footwear
The study by Martinez (2010) focuses on the outsourcing decision in the Spanish Footwear
Industry. The study throws light on the transformation in the Spanish footwear market
between the years 1975-1995, due to the entry of foreign competitors. The author observes
that the firms outsourcing decisions depend on certain factor like the search cost, the
intensity to innovate according to the customers’ requirements and linkages with other
institution like the chamber of commerce or other public organisations. Further certain
geographic areas are more preferred such as vinaplo and Amedo-Calhorra as they are
considered as principal footwear district. The study becomes very important in the present
scenario of competition from other low-labour cost countries due to globalization. The
Spanish footwear market is highly price sensitive. Therefore concentration is more on

29
selecting low cost labour intensive partner. Investment on marketing or branding operations
is normally postponed.
18. A.K Subramanian (2015) customer buying behaviour toward branded shoes
The survey study on “Customer buying behaviour towards branded casual shoes”. Has been
conducted to observe the preferences of customers. This system of education is highly
appreciated as it provides with the opportunity to acquaint with the outside world. The
practical work helps to view the real business world closely which in turn widely influence
the conception and perception of knowing their perception regarding branded casual shoes.
This project takes a look in various kinds of merchandising activities. Market share of
different shoes and various sales promotion schemes, which are followed in the shoes
industry .The three major players Reebok, Nike, and adidas dominate the sports and casual
shoe in India.

30
CHAPTER 4
4.1 Research methodology
Research compromise defining and redefining problems, formulating hypothesis or
suggested solutions; collecting, organizing and evaluating data; making deductions and
reaching conclusions and at last carefully testing and the conclusions to determine whether
they fit the formulating Hypothesis.
In short, the search knowledge through objective and systematic method of finding solutions
to a problem is Research.12
RESEARCH OBJECTIVES;-
To study the tastes, preferences, and buying behaviour of consumers in case of footwear of
Nike and Adidas.
To analysis buying behaviour of ladies segment of consumer.
To recommend strategies to Nike to increase sales in ladies segment.
The main objectives of this study are;
Working of insurance plans
SWOT analysis of the product sold
Comparative study with the competitors
RESEARCH DESIGN;-
Type of research;
Descriptive research;
Descriptive research include survey and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variable; he can
only report what has happened or what is happening.
DATA SOURCES;-
There are two type of data.
Sources of primary data for the present study is collected through questionnaire and
answered by consumers of Nike shoes. The secondary data is collected from journals, books
and through internet search.13
12
www.businessdictionary.com > definition
13
Scribd project uploaded by Krishna

31
PRIMARY DATA;-
The data that is collected first hand by someone specifically for the purpose of facilitating
the study is known as primary data. So in this research the data is collected from the
respondents through questionnaire.
SECONDARY DATA;-
For the company information I have used secondary data like brochures, website of the
company etc.
The method used by me is Survey Method as the research done is Descriptive Research.
RESEARCH INSTRUMENTS;-
Selected instruments for data collection for survey is questionnaire.
QUESTIONNAIRE DESIGN FORMULATION;-
Under this method, list of questions like pertaining to the survey are prepared for customer
satisfaction of Nike and Adidas.
Questionnaire has structured type questions as well as unstructured type of questions.
Structured objective type questions are prepared for the respondents with fixed response
categories. Questions are of multiple-choice type. The questions have more than one
alternative
Questionnaire – A questionnaire consists of a set questions presented to respondents for their
answers. It can be closed ended or open ended.
Open Ended – Allows respondents to answer in their own words and are different interpret
and tabulate.
Close Ended – Pre-specify all the possible answers and are easy to Interpret and Tabulate.
TYPES OF QUESTION INCLUDED;-
Dichotomous Questions:-
Which has only two answers “YES” or “NO”
Multiple-choice Questions:-
Where respondents is offered is more than two choices.
Importance Scale:-
A scale that rates the importance of some attribute
RATING SCALE;-
A scale that rates some attribute from “highly satisfied” to “ highly unsatisfied” and “very
inefficient” to “very efficient”
SAMPLING UNIT;-

32
Who is to be surveyed? The researcher must define the target population that will be
sampled.
The sample unit taken by me; General public of different age group, different gender and
profession.
EXTENT;-
Where the survey should be carried out?
I have covered entire residential area of Ahemdabad city of the survey
TIME FRAME;-
When the survey should be conducted?
SAMPLING FRAME;-
The source from which the sample is drawn
SAMPLING TECHNIQUE;-
How should the respondent be chosen?
In the Project sampling is done on basis of Probability sampling. Among the probabilitu
sampling design the sampling design chosen is stratified random sampling.
Because in this survey I had stratified the sample in different age group, different gender and
different profession.
SAMPLE SIZE;-
A sample size of 150 number of Adidas and 150 number of Nike. A total of 300 sample size
is taken.
STEPS FOLLOWED IN COMPLETING THE STUDY;-
I. Libraries at (a) Indian council for Applied Economic Research (ICAER), (b) Institute of
Technology (IIT) Delhi, (c) council of scientific and industrial research (CSIR) (d) PHD
chamber of commerce are visited Management / Marketing books, journals are consulted.
II. Internet sites containing information on Nike and Adidas are browsed.
III. Sample survey was conducted
IV. Data was thoroughly checked for mirror.

33
DATA PROCESSING METHODOLGY;-
i. Once the primary data have been collected, they are (1) edited – inspected, corrected and
modified.
ii. Tabulation – bring similar data together and totalling hem in meaningful categories.
Questionnaires are edited both in the field and later in home. Field editing took place just
the interview. Generally editing is required for open types of questions. Brief notes or
symbols are frequently used during the interview to initially record the interviewer’s
response since it was not desirable to interrupt the flow with lengthy note taking. Then
immediately after the interview, brief notes are recorded. The responses are thoroughly
checked in home for incorrect, inconsequential or contradictions categories are developed
only often the replies has been reviewed.
The collected data are placed into an order. Percentages of respondents answered similarly
are calculated. Then this is interpreted. This 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 structure.
CONCLUSION WAS DRAWN BASED ON THE SURVEY FINDINGS;-
Finally recommendation was made to improve the sales strategy of Nike and Adidas increase
the sales volume.
BIASES AND NON – COOPERATION OF THE RESPONDENTS;-
The collected data are placed into an order. Percentages of respondents answered similarly
are calculated and placed in a table. Then this is interpreted. This initial drawing conclusion
from the gathered data. Interpretation changes the new information immerging from the
analysis into an information that is pertinent or relevant to the structure.

34
4.2. Scope of Nike and Adidas
The research study entitled comparative analysis of market potentiality market share and
consumer’s prescription for NIKE and ADIDAS.
Study on market potentiality depends on different type of market shares. The study also gives
the extent of satisfaction & dissatisfaction among the users so that the company can take the
desire step to minimize the dissatisfaction level.
Study of the various factors which place a major role in purchasing decision with provide
the opportunity for the company to get the information about the most common factors which
influence the purchase decision.
The study helps to determine the average annual expenditure of the customers and a price
that is affordable for them to purchase footwear. In order to frame its price range.
According, the aim of the study is to estimate the market potentiality and consumer
prescription in Ahmedabad & compare it with its comparative brand and also forecast the
various opportunities available in the market for NIKE & ADIDAS for coming years.
Therefore, it is accepted that the research finding would give valuable result which would
benefit for the company – NIKE & ADIDAS, to make vital decision & frame their marketing
programs for more effectively and efficiency to be premier & a market leader in the fashion
industry.14
1414
https://economictimes.com.com

35
4.3 Limitations of the research
While surveying I encounter the following problems:-
• The survey is done in Ahemdabad city only.
• A survey should involve a larger sample size otherwise the findings of the survey cannot 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 retail outlets it is not allowed to get questionnaire filled.
• Many respondents were not willing to fill the questionnaire
• Participation of the respondents were lacking as they were in hurry and thus proper
information was not given by the respondents.
• One of the main drawback was collecting the information from the respondents as well as
from managers and the staff working in the retail outlets.

36
CHAPTER 5
5.1 DATA ANALYSIS AND FINDINGS
Qualitative Data: Definition
Qualitative data is defined as the data that approximates and characterizes. Qualitative data
can be observed and recorded. This data type is non-numerical in nature. This type of data
is collected through methods of observations, one-to-one interview, conducting focus groups
and similar methods. Qualitative data in statistics is also known as categorical data. Data that
can be arranged categorically based on the attributes and properties of a thing or a
phenomenon. Qualitative data is also called categorical data since this data can be grouped
according to categories.
Two Main Approaches to Qualitative Data Analysis
• Deductive Approach;-
The deductive approach involves analysing qualitative data based on a structure that is
predetermined by the researcher. In this case, a researcher can use the questions as a guide
for analysing the data. This approach is quick and easy and can be used when a researcher
has a fair idea about the likely responses that he/she is going to receive from the sample
population.
• Inductive Approach;-
The inductive approach, on the contrary, is not based on a predetermined structure or set
ground rules/framework. This is more time consuming and a thorough approach to
qualitative data analysis. Inductive approach is often used when a researcher has very little
or no idea of the research phenomenon.15
15
Uir.unisa.ac.za > bit stream

37
5.2 CHI-SQUARE ANALYSIS
A. Descriptive analysis towards age and satisfaction (Adidas)
Age * satisfaction through adidas Cross tabulation
satisfaction through adidas
Total
Highly
Satisfied Not satisfied Satisfied Average
Age 18-30 41 22 164 23 250
31-45 7 4 27 3 41
46-60 4 0 4 0 8
above
60
0 0 1 1 2
Total 52 26 196 27 301
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson
Chi-Square
11.321a
9 .254
Likelihood
Ratio
9.635 9 .381
Linear-by-
Linear
Association
.709 1 .400
N of Valid
Cases
301

38
Interpretation;-
• H0; - Age and brand preferred are independent.
H1; - Age and brand preferred are dependent.
Therefore, we can conclude from the above table that H1 is accepted as the
value is above 0.05 i.e. 0.254 and thus H0 is rejected.
• From the above statistical data we can conclude that there are a total of 52
respondents who are highly satisfied, 26 respondents who are not satisfied, and
196 respondents who are satisfied, and 27 respondents whose satisfaction level
is average.
0
50
100
150
200
250
300
350
Age * satisfaction through adidas Crosstabulation
Count Age Total
Age - Satisfaction Through Adidas
Series1 Series2 Series3 Series4 Series5 Series6 Series7 Series8

39
Satisfaction
level
18-
30
31-
45
46-
60
Above
60
Highly
satisfied
41 7 4 0
Not
satisfied
22 4 0 0
Satisfied 164 27 4 1
Average 23 3 0 1
The above table represents the number of respondents who are of different age
group and has different level of satisfaction level.
From our research we come to the conclusion that the respondents from the age
group from 18-30 and 31-45 are having a satisfaction level which is quite higher
than the age group above 46- 60 and above 60. The youngsters of our city are
highly satisfied by the brand whereas the senior citizens or the respondents
above the age of 60 are not satisfied by the company’s products.

40
B. Descriptive analysis on age and satisfaction (Nike)
Age * satisfaction through Nike Cross tabulation
satisfaction through Nike
Total
Highly Satisfied
Not
satisfied satisfied Average
Age 18-30 78 29 132 11 250
31-45 12 3 24 2 41
46-60 3 0 4 1 8
above 60 0 0 1 1 2
Total 93 32 161 15 301
Chi-Square Tests
Value Df
Asymp. Sig.
(2-sided)
Pearson
Chi-Square
11.933a
9 .217
Likelihood
Ratio
8.063 9 .528
Linear-by-
Linear
Association
1.503 1 .220
N of Valid
Cases
301

41
Interpretation;-
• H0; - Age and brand preferred are independent variables.
H1; - Age and brand preferred are dependent variables.
Therefore, we can conclude from the above table that H1 is accepted as the value
is above 0.05 i.e.0.217 and thus H0 is rejected.
respondents who are highly satisfied, 32 respondents who are not satisfied, and
161 respondents who are satisfied, and 15 respondents whose satisfaction level
is average.
0
50
100
150
200
250
300
350
satisfaction through
nike
Total
Age Total

42
Satisfaction
level
18-
30
31-
45
46-
60
Above
60
Highly
satisfied
78 12 3 0
Not
satisfied
29 3 0 0
Satisfied 132 24 4 1
Average 11 2 1 1
The above table represents the number of respondents who are of different age
group and has different level of satisfaction level.
From our research we come to the conclusion that the respondents from the age
group from 18-30 and 31-45 are having a satisfaction level which is quite higher
than the age group above 46- 60 and above 60. The youngsters of our city are
highly satisfied by the brand whereas the senior citizens or the respondents
above the age of 60 are not satisfied by the company’s products.

43
C. Descriptive analysis on age and brand preferred
Age * brand preferred Cross tabulation
brand preferred
Total
Nike Adidas Others
Age 18-30 133 59 58 250
31-45 19 14 8 41
46-60 3 3 2 8
above 60 2 0 0 2
Total 157 76 68 301
Chi-Square Tests
Value Df
Asymp.
Sig. (2-
sided)
Pearson Chi-Square 4.746a
6 .577
Likelihood Ratio 5.383 6 .496
Linear-by-Linear
Association
.061 1 .805
N of Valid Cases 301

44
Interpretation;-
• H0; - Age and brand preferred are independent.
H1; - Age and brand preferred are dependent.
value is above 0.05 i.e. 0.577and thus H0 is rejected.
respondents prefer Nike, 76 respondents who prefer Adidas and 68 respondents
who prefer other brands.
0
50
100
150
200
250
300
350
Age Total
Age * brand prefered Crosstabulation Count
Age * brand prefered Crosstabulation Count brand
prefered
prefered
prefered

45
Age group Nike Adidas Others
18-30 133 59 58
31-45 19 14 8
46-60 3 3 2
Above 60 2 0 0
The table above represents different age group respondents who prefer different
brands. From our research we conclude that there are a total of 157 respondents
from different age group who prefer Nike and 76 respondents who use Adidas
and 68 respondents who prefer other brands. From this we can conclude that in
our city there are more number of respondents using Nike in comparison of
Adidas and other brands offered.

46
D. Descriptive analysis on gender satisfaction (Adidas)
Gender * satisfaction through adidas Cross tabulation
satisfaction through adidas Total
Highly Satisfied Not satisfied Satisfied Average
Gender
Male 33 20 101 17 171
Female 19 6 95 10 130
Total 52 26 196 27 301
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
3 .049
Linear-by-Linear Association 1.978 1 .160

47
Interpretation;-
• H0; - Gender and brand preferred level are independent.
H1; - Gender and brand preferred are dependent.
value is above 0.05 i.e. 0.49and thus H0 is rejected.
male respondents prefer Adidas, 130 female respondents who prefer Adidas.
0
50
100
150
200
250
300
350
Gender *
satisfaction
through adidas
Crosstabulation
Count Gender Total

48
The above table represents the number of respondents who are of different
gender and has different level of satisfaction level.
From our research we come to the conclusion that male group of our
respondents are satisfied by the brand whereas female’s group satisfaction is
less as compared to male group. When we compare the non-satisfaction level
it is higher in males as compared to females.
Satisfaction
level
Male Female
Highly
satisfied
33 19
Not satisfied 20 6
Satisfied 101 95
Average 17 10

49
E. Descriptive analysis of gender satisfaction (Nike)
Chi-Square Tests
Value Df Asymp. Sig. (2-
sided)
3 .118
Linear-by-Linear Association 4.004 1 .045
Gender * satisfaction through Nike Cross tabulation
satisfaction through Nike Total
Highly Satisfied Not satisfied satisfied Average
Gender
Male 59 22 82 8 171
Female 34 10 79 7 130
Total 93 32 161 15 301

50
Interpretation;-
• H0; - Gender and brand preferred level are independent.
H1; - Gender and brand preferred are dependent.
male respondents prefer Nike annd130 female respondents who prefer Nike.
0
50
100
150
200
250
300
350
Highly Satsified Not satisfied satisfied Average
satisfaction through nike Total
Gender Male Gender Female Total

51
Satisfaction
level
Male Female
Highly
satisfied
59 34
Not satisfied 22 10
Satisfied 82 79
Average 8 15
The above table represents the number of respondents who are of different
gender and has different level of satisfaction level.
From our research we come to the conclusion that male group of our
respondents are satisfied by the brand whereas female’s group satisfaction is
less as compared to male group. When we compare the non-satisfaction level
it is higher in males as compared to females.

52
F. Descriptive analysis on gender and the reason to switch brands
Gender * reason to switch brand Cross tabulation
reason to switch brand Total
Quality Innovation Advertisement Price Other
Gender Male 123 27 4 16 1 171
Female 90 19 5 16 0 130
Total 213 46 9 32 1 301
Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Pearson
Chi-Square
2.069a 4 .723
Likelihood
Ratio
2.427 4 .658
N of Valid
Cases
301

53
Interpretation;-
• H0; - Gender and reasons to switch brand are independent.
H1; - Gender and reasons to switch brand are dependent.
male respondents prefer Nike annd130 female respondents who prefer Nike.
0
50
100
150
200
250
300
350
reason to swtich
brand
Total
Gender Total

54
Reasons to
switch brand
Male Female
Quality 123 90
Innovation 27 19
Advertisement 4 5
Price 16 16
Other 1 0
The above table represents the statistical data of how gender of a respondent
gives them a different reason to switch the brand they use.
From our research we have concluded that there are different reasons to switch
the brands of a respondent some of them are quality, innovation, advertisement,
price and other reasons to switch the brand preferred. There are a total of 123
males who have switched their preferred brand due to the quality changes in
the product offered. This concludes that the number of males using the
preferred brand may change their preferred brand if they company doesn’t
improve the quality of the products.

55
CHAPTER; 6
6.1 Conclusion & Suggestions
It seems that conducting a survey is a very good choice to allow consumers to evaluate
what they wanted and what they are satisfied with. However, the drawbacks such as few
willing respondents and not able to fully voice out their opinions. This is not much of a
problem as survey questions are not very specific. But, conducting a survey is able to give
us some idea of what consumers are really thinking about Adidas and Nike products. In the
future, survey questions will be made to allow the consumers to give more accurate and
specific answers to the Adidas and Nike brand. This method, when done continuously, will
create an idea that Adidas and Nike can use to fully meet customer`s satisfaction and increase
sales.
The idea that Adidas and Nike is tailored for the active, trendy and comfortable lifestyle
of both teenagers and adults are conclusive. Just like their competitor, Nike, Adidas provides
excellent satisfactions to consumers up to a certain extent because there are still some who
would choose Nike over Adidas. Adidas now with the purchase of Reebok, has a larger
consumer base and this in turn, will definitely increase profits for the company. In terms of
price, Adidas shoes are not too much of a luxury product as some purchased it before would
repeat the decision to purchase again. Even with small discounts offered. Competition is stiff
in the sport shoe industry as many major companies are actively producing new shoes that
are meeting consumer satisfactions. Adidas and Nike are also very vigilant and is actively
improving itself to improve its products and satisfy the consumers.
From our research we have concluded the following points;-
• In our research we have analysed customer satisfaction of our respondents with their age
brand preferred by them.
• We have also analysed customer satisfaction of our respondents with their gender and brand
preferred by them, the reasons they switch their preferred brand.
• While conducting our study we concluded that the respondents who are from 18- 45 are
satisfied from the products of Adidas and Nike whereas the respondents above age of 45 are
not really satisfied.

56
• From our research we conclude that there are a total of 157 respondents from different age
group who prefer Nike and 76 respondents who use Adidas and 68 respondents who prefer
other brands. From this we can conclude that in our city there are more number of
respondents using Nike in comparison of Adidas and other brands offered.
• Majority of our male respondents prefer Adidas/ Nike more in comparison of our female
respondents. Non satisfaction level of male respondents are significantly high in comparison
of female respondents.
• When it comes to switching brand of our male respondent’s quality and innovation are the
main parameters. Whereas when it comes to female respondents for switching brands the
main reason is advertisement. Price is the only reason where both male and female
respondents switch their brand equally.

57
CHAPTER 7
BIBLOGRAPHY
• Wembo Cui (2011) consumer based brand equity in Chinese sports market
• D mello (2003) report based on brand experiences
• Choice and James (1996) report based on customers preference
• Bethuel kinyanjui kinuthia (2009) customer satisfaction purchasing branded shoes in
Malaysia
• Preeti Mehra (2010) consumer satisfaction over purchase of branded shoes
• Rajdeep Singh (2016) study based on brand loyalty in footwear industry
• Bale el al (1981) fall of US footwear sector
• Prof. Gill (2009) report based on branding strategy of Nike & Adidas
• Prof. Richard (2007) report based on customer loyalty
• Jacoby & Kyner (1973) report based on brand loyalty
• Cyert (1956) customer buying behaviour towards branded casual shoes.
• Amit Jain (2012) market comparison on Nike and Adidas
• Heasun (2010) exploitation of labour in footwear firm
• Troy (2000) customer satisfaction based on product quality
• Celuch (2004) customer satisfaction based on brand loyalty
• Martinez (2010) outsourcing decision in Spanish footwear
• A.K Subramanian (2015) customer buying behaviour toward branded shoes
• https://www.businessinsider.com
• https://www.samford.edu
• https://www.academia.edu >Adidas Nike.
• Scribd project uploaded by anuvenu1606
• https://en.m.wiki > org.

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