This 3 sentence summary provides the key details about the document: The document outlines a market research proposal for Nike to assess consumer awareness, preferences, and purchase interest for their Dri-FIT range of products across Asia Pacific markets, with the goal of determining whether to change, reinvigorate, or phase out the line. A mixed methodology is proposed including store audits, focus groups, and exit interviews to understand brand perceptions and barriers to purchase from both quantitative and qualitative perspectives. The research is designed to be conducted over 10 weeks across Hong Kong, Shanghai, and Sydney with samples of 300 consumers and store visits.

1. Proposal for
Nike Dri-FIT
Market Research
Prepared for: Alison Dean
June 14, 2009

2. Table of Content
Executive Summary
Background
Problem Definition
Research Design
Fieldwork Data Collection
Data Analysis
Reporting
Timing
Appendices

3. Executive Summary
This proposal responds to your brief of June 15 2009 and describes:
Business Objective:
– to change, reinvigorate or phase out the Dri-FIT range of products
Research Objective:
– to assess if consumers are aware of the brand and the media communications.
– to assess if consumers are familiar with the technology and consider it important.
– to understand purchase interest across different price points and evaluate spend potential.
– to assess consumer preferences to designs, colours and materials.
– to evaluate in store distribution, visibility and availability.
Our Recommended Approach:
Store Audit: Visit stores to assess what are the barriers to purchase (poor visibility, limited
availability and knowledge of sales staff)
Qualitative: Conduct focus groups with user groups to explore reactions to the brand, the
designs and media communication material.
Quantitative: Conduct questionnaires outside stores to measure awareness of the brand and
media communication material and to assess interest at current and alternative
price points.
Sample Composition: n=300 Questionnaire / n=8 Interviews with Store Managers / n=5 Focus Groups
Timing: 10 weeks from project confirmation

4. Background

5. Background
Nike was established in 1971 and is a global marketer of athletic footwear, apparel and equipment. It’s swoosh logo and
‘Just Do It’ slogan have motivated millions all over the world (Malhotra, 2007: 404-405).
Consumers receive information from different media sources and make good use of it to collect product information of
their preferred products (Schiffnan et al., 2005). Because consumer knowledge of products and competitive products
affect the consumption decision-making process (Schiffnan et al., 2005), media can be considered the most effective
channel to distribute product information (Ramaswamy, 2008). Consumers’ consumption behaviour is affected by their
brand knowledge and personality (Kay, 2006: Schiffman et al., 2005), it is recommended that Nike Inc. understand
consumers by analyzing the relationship between consumer psychology and product characteristic (Schiffman et al.,
2005).
The market for sports apparel is becoming increasingly competitive. The model developed by Phil Knight (high value
branded product manufactured at a low cost) is now commonly used and to an extent it is no longer a basis for
sustainable competitive advantage. Competitors are developing alternative brands to take away Nike's market share.
The Dri-FIT range has not been meeting projected sales targets in the Asia-Pacific region. We have been commissioned
by the brand manager to conduct market research in Hong Kong, Shanghai and Sydney. We will measure all aspects of
the marketing mix and provide valuable information to support the management decision to reinvigorate, change, or
phase out the Dri-FIT range.

6. Problem Definition

7. Problem Definition
Research is the systematic collection and analysis of information which helps to
improve the quality of planning and decision making. It helps marketers to fully
understand what consumers want and can be used to explain and predict
attitudes and behaviour of the population (Malhotra, 2007: 7-9).
Nike Inc. is conducting market research to review the business case from the
consumers’ point of view. The research will be used to establish whether (1) the
Dri-FIT range is sufficiently market-focused (2) marketing plans and planning
process are deficient and (3) brand building and communications are weak
(Kotler, 2004: 20).

8. Problem Definition
The objectives of this research study are:
To assess if consumers are aware of the brand and its media communications.
To assess if consumers are familiar with the technology and consider it important.
To understand purchase interest across different price points and evaluate spend potential.
To assess consumer preferences to designs, colours and materials.
To evaluate in store distribution, visibility and availability.

9. Our Research Methodologies
Qualitative Quantitative
In-depth understanding Quantify consumer
of customer behaviour and attitude behaviour and attitude
Focus Groups Questionnaire
In-Depth Interviews

10. Our Approach
We recommend a three-phase approach:
Store Audit and store manager interviews: Depth interviews are a direct way of
obtaining information to illustrate a number of specific issues. Our store audit and interviews will be
conducted on a one-on-one basis to uncover beliefs and attitudes about the brand and reveal any
underlying or hidden information that we can test quantifiably with further research
(Malhotra, 2007:158-162).
Qualitative: Our focus groups will be conducted by a qualified research moderator and consist of eight (8)
respondents. It will provide deeper understanding of why and how products are chosen and purchased
(Malhotra, 2007:145-155).
Quantitative: This research will measure consumer awareness, interest across current and different price
points and reactions to media communications. Our well designed questionnaires are easy to complete
and offer a direct comparability of responses. Questionnaires will be completed by consumers as they
exit the store (Malhotra, 2007:187-189).

11. Our Approach
The research variables include:
3 different markets (Hong Kong, Sydney and Shanghai)
8 stores to be visited in each city
Sex of respondents
Age of respondents
Various levels of brand awareness
Understanding of technology
Time of study conducted

12. Our Approach
Rationale:
To link the consumer to you through the collection of data/information.
In doing so you will be able to gain valuable insight into the consumer and define
opportunities or problems to support your management decisions. Using proven research methods we will
explore and measure all aspects of the marketing mix (Malhotra, 2007: 8-11).
Product Price Promotion Place
Is the price Are you connecting to
Is the current range
competitive? the most valuable Do you have good
appealing?
Are consumers users? visibility in store?
Do you need to
shopping around for a Are you Are you in the right
introduce new
better deal? communicating the store?
designs?
Can you compete? benefits clearly?

13. Research Design

14. Research Design
Who, What, Where, When and Why?
Our research design is the framework of our market research proposal. It defines the information needed to
conduct the research and how we propose to obtain it (Malhotra, 2007: 78).
Store Audit Qualitative Research Quantitative Research
Barriers to Purchase Consumer Understanding Brand Test
Understand core target consumer
Measure awareness of the brand and
groups’ interest in the brand, and
Assess barriers to purchase the media communication material
more importantly their perception /
attitude towards it.
Assess the styles available Measure consumer reaction to the
brand and the media communication
Understand the pre-defined core
Assess the knowledge of sales staff material
target consumer’s life-style and
attitude to fitness.
Assess media communications Measure consumer interest at current
and different price points
Understand the triggers that lead to
purchase

15. Research Design
Who, What, Where, When and Why?
Store Audit Qualitative Research Quantitative Research
Barriers to Purchase Consumer Understanding Brand Test
Valuable Users Valuable Users Valuable Users
What they know about the brand? What sport do they do? Level of brand awareness?
Do they understand the benefits? What do they wear? Level of Interest in the brand?
Are they able to communicate What is important? Perception of the brand?
benefits to customers? Which brands do they use? Likelihood to buy at current and
How visible is the brand in store? Why do they use them? different price points?
How do they rate Dry-FIT Which have the best designs? Attractive Attributes of the brand?
What is the competition? Which are the most wearable? Level of agreement with media
What are the best sellers? What do they like about the communication?
Why are they the best sellers? advertisements? Is current marketing successful?

16. Research Design: Store Audit
Rationale:
Store audits are a good way to assess the barriers to purchase i.e. poor visibility, limited availability and
sales knowledge. Our experienced staff will record their systematic observations and conduct depth
interviews with store managers. This method is very effective in revealing any underlying or hidden
information (Malhotra, 2007:159).
The criteria for the respondents are: Length of interviews:
Store Manager & Staff 30 minutes
Selection
Stores will be selected in high traffic areas
Hong Kong / Shanghai /Sydney
8 x Stores Interviews will be conducted with store managers
Nike or Outlet Store Stores must keep Dri-FIT range
Sample attached as an appendix

17. Research Design: Focus Group
Rationale:
Focus groups are proposed because they are a time and cost-effective way to explore various issues. This
method provides an environment in which you have direct contact with consumers allowing you to
understand the behaviour and thinking of the respondents as individuals. The group dynamic is very
effective as it encourages people to think and speak and build on each other’s ideas. This pre-quantitative
preparation will provide insight for our questionnaire design
(Malhotra, 2007:145-155, Rosenberger, 1996:1-13 & Morgan 1993: 3-19).
The criteria for the respondents are: Length of interviews
Aged 18 – 50 Approximately 120 minutes
Athlete / Athletic Participant / Consumer Recruitment
8 x Respondents per group All respondents are screened to ensure suitability
Hong Kong / Shanghai /Sydney
Mixed Group
1 x Athlete
1 x Male / 1 x Female
2 x Athletic Participant
1 x Male / 1 x Female
2 x Consumer
Current user of brand
Minimum 4 respondents in each group
or competitor
Sample attached as an appendix

18. Research Design: Questionnaire
Rationale:
The key objective of this questionnaire is to understand consumer awareness, behavior and perception
towards the brand and their acceptance at different price points. This questionnaire shall be conducted
outside stores in high traffic areas. The method will provide a representative sample of the population
(Malhotra, 2007:296-322 & Williamson et al., 2000: 235-249).
Length of interviews
The criteria for respondents: Approximately 15 minutes
Aged 18 – 50 Recruitment
Athlete / Athletic Participant / Consumer As customers exits store
Questionnaire screens respondents to ensure suitability
Hong Kong / Shanghai /Sydney
Total sample size
N=300
Male & Female
Sample composition
Age 18 – 29
Age 30 - 39 N=100 in each age group (M x 50 / F x 50)
Age 40 - 50
Sample attached as an appendix

19. Data Collection

20. Data Collection
Design of questionnaires and subsequent analysis will be
conducted by a senior research director (Malhotra, 2007:305-306).
Experienced moderators will be responsible for facilitating the focus group
discussions and store visits, conducting store audits and interviewing staff and store managers
(Malhotra, 2007:145 & 158).
Focus groups will take place in a viewing studio allowing the client to view/attend
(Malhotra, 2007:147).
All materials will be agreed and signed off with the client before proceeding - crucially sample
design, questionnaire and recruitment specs (Malhotra, 2007: 300-301).
Fully trained professional interviewers will be conducting the store exit interviews. Quotas and
progress will be monitored by a fieldwork manager or supervisor (Malhotra, 2007: 413-418).
A proportion of the interviews will be back checked i.e. respondents re-contacted and confirmation
of the interview and key information provided in interview made (Malhotra, 2007: 305-306).
Interviewers will use PDA to input questions and additional data entry. The questionnaire will be
scripted onto the PDA and routing done automatically to avoid interviewer errors. The program will
be tested before going to field (Malhotra, 2007: 419).
All interviews will be conducted in the language of the participants.

21. Data Analysis

22. Lifecycle of the Research Project
Meet with Nike Brand Manager to Store Audit & Develop questionnaire
ensure understanding of objectives, answer options, decide on which
target consumers and research plan consumers will take part in discussion
groups and interviews
Fieldwork – Questionnaires
administered
Hold focus groups and finalise
questionnaire answer options
Analyse results – check data and
figures from questionnaires, watch Prepare presentation that answers
videos/ transcripts of consumer client’s objectives and make business
groups and interviews recommendations

23. Analysis will allow us to Potential: Purchase intention
would be improved if perception
measure perception and and attitude towards the range
attitudes improves.
27.0 100.0
Dri-FIT is a good brand
I have seen the advertisements 28.0 67.0
Dri-FIT designs are good 25.0 43.0
Dri-FIT pricing is competitive 27.0 38.0
Dri-FIT have the styles I want 8.0 29.0
Dri-FIT is a fashionable brand 17.0 27.0
Dri-FIT is suitable for me 18.0 26.0
Maintenance: Concept creates low to Potential
Maintenance
moderate perceptions of ‘Dri-FIT’ as a
fashionable brand.

24. Analysis will allow us to measure purchase interest
Research will identify the segments with greatest purchase intention
Aged 18-29
N=50
50%
60% Female
N=150
Total Evaluated
(n=300)
65%
Females aged 18-29 has
purchase intention of 65%

25. Data Analysis
The tool we will use to analyze the relationship between the independent and
dependent variables is cross-tabulation (Malhotra, 2007: 468).
Our rationale for using this method:
Cross tabulations are easy to interpret and understand.
They can be used with any level of data: nominal, ordinal, interval, or ratio.
A table can provide greater insight than single statistics.
It solves the problem of empty or sparse cells.

26. Reporting

27. Reporting
The research deliverables are:
One PowerPoint research report covering:
Store Audit findings
Qualitative in-depth research findings
Quantitative questionnaire research findings
Following supports are expected from Nike:
Stimulus materials to introduce the store and the product
Advisory input in developing attributes or answer options used in the questionnaire
*A workshop to discuss the implications of the findings is optional.

28. Timing

29. Timing
A total of 10 weeks are required to deliver the final research output.
Week No.
TASK 1 2 3 4 5 6 7 8 9 10
Store Audit
Qualitative
- Preparation of research
- Recruitment
- Conduct Focus Group
- Reporting
Quantitative
- Set up, develop questionnaire
- Fieldwork
- Reporting

30. References

31. References
Alreck, P.L. and Settle, R.B. (1999) Strategies for building consumer brand preference, The Journal of Product & Brand Management,
Vol 8, No 2, pp 130-144, viewed 13 June 2009 http://www.emeraldinsight.com
Francis, G. (2007) Introduction to SPSS for Windows, v15.0 and 14.0, Pearson Education Australia
Kay, M. J. (2006) Strong brands and corporate brands, European Journal of Marketing, Vol 40, No 7/8, pp 742-760, viewed 13 June
2009 http://www.emeraldinsight.com
Kotler, P. (2004) Ten Deadly Marketing Sins: Signs and Solutions, John Wiley & Sons, New Jersey, pp 20, ISBN: 978-0-471-66206-8
Malhorta, N. K. (2007) Marketing Research: An Applied Orientation 5th Edition, New Jersey, Pearson Prentice Hall.
Morgan, D. (1993) Successful focus groups : advancing the state of the art Chapter 1, pp. 3-19, Sage Publications, Newbury Park, Calif.
Ramaswamy, V. (2008) Co-creating value through customers' experiences: the Nike case, Strategy & Leadership, Vol 36, No 5, pp 9-14,
viewed 13 June 2009 http://www.emeraldinsight.com
Rossenberger, P. J. (1996) Focus Groups: An Introduction for the Uninitiated, pp. 1-15, Department of Management, University of
Newcastle
Shiffman, L., Bednall, D., O’cass, A., Paladino, A. and Kanuk, L. (2005) Consumer Behaviour, 3rd Edn, NSW, Person Education
Australia
Williamson, K. (1989) Research methods for students, academics and professionals: information management and systems, Kirsty 2nd
ed., Chapter 14,2002,pp. 235-249

32. Appendices