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CHAPTER 1

INTRODUCTION
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1. INTRODUCTION

Nike, Inc. is an American multinational corporation that is engaged in the design,

development, manufacturing, and worldwide marketing and sales of footwear,

apparel, equipment, accessories, and services. The company is headquartered

near Beaverton, Oregon, in the Portland metropolitan area. It is the world's largest

supplier of athletic shoes and apparel and a major manufacturer of sports

equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending

May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2014

the brand alone was valued at $19 billion, making it the most valuable brand among

sports businesses.[5] As of 2017, the Nike brand is valued at $29.6 billion.

The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill

Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The

company takes its name from Nike, the Greek goddess of victory. Nike markets its

products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike

Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and

subsidiaries including Brand Jordan, Hurley International and Converse. Nike also

owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and

previously owned Cole Haan and Umbro. In addition to manufacturing sportswear

and equipment, the company operates retail stores under the Niketown name. Nike

sponsors many high-profile athletes and sports teams around the world, with the

highly recognized trademarks of "Just Do It" and the Swoosh logo.

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1.1 COMPANY PROFILE

Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of

Oregon track athlete Phil Knight and his coach Bill Bowerman in January 1964. The

company initially operated as a distributor for Japanese shoe maker Onitsuka

Tiger(now ASICS), making most sales at track meets out of Knight's automobile.

According to Otis Davis, a student athlete whom Bowerman coached at the

University of Oregon, who later went on to win two gold medals at the 1960 Summer

Olympics, Bowerman made the first pair of Nike shoes for him, contradicting a claim

that they were made for Phil Knight. Says Davis, "I told Tom Brokaw that I was the

first. I don't care what all the billionaires say. Bill Bowerman made the first pair of

shoes for me. People don't believe me. In fact, I didn't like the way they felt on my

feet. There was no support and they were too tight. But I saw Bowerman make them

from the waffle iron, and they were mine."

In 1964, in its first year in business, BRS sold 1,300 pairs of Japanese running shoes

grossing $8,000. By 1965 the fledgling company had acquired a full-time employee,

and sales had reached $20,000. In 1966, BRS opened its first retail store, located at

3107 Pico Boulevard in Santa Monica, California next to a beauty salon, so its

employees no longer needed to sell inventory from the back of their cars. In 1967,

due to rapidly increasing sales, BRS expanded retail and distribution operations on

the East Coast, in Wellesley, Massachusetts.

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By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS

prepared to launch its own line of footwear, which would bear the Swoosh newly

designed by Carolyn Davidson. The Swoosh was first used by Nike on June 18, 1971,

and was registered with the U.S. Patent and Trademark Office on January 22, 1974.

In 1976, the company hired John Brown and Partners, based in Seattle, as its first

advertising agency. The following year, the agency created the first "brand ad" for

Nike, called "There is no finish line", in which no Nike product was shown. By 1980,

Nike had attained a 50% market share in the U.S. athletic shoe market, and the

company went public in December of that year.

Together, Nike and Wieden+Kennedy have created many print and television

advertisements, and Wieden+Kennedy remains Nike's primary ad agency. It was

agency co-founder Dan Wieden who coined the now-famous slogan "Just Do It" for a

1988 Nike ad campaign, which was chosen by Advertising Age as one of the top five

ad slogans of the 20th century and enshrined in the Smithsonian Institution. Walt

Stack was featured in Nike's first "Just Do It" advertisement, which debuted on July

1, 1988. Wieden credits the inspiration for the slogan to "Let's do it", the last words

spoken by Gary Gilmore before he was executed.

Throughout the 1980s, Nike expanded its product line to encompass many sports

and regions throughout the world. In 1990, Nike moved into its eight-building World

Headquarters campus in Beaverton, Oregon. The first Nike retail store, dubbed

Niketown, opened in downtown Portland in November of that year.

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Phil Knight announced in mid 2015 that he would to step down as chairman of Nike

in 2016. He officially stepped down from all duties with the company on June 30,

2016.

1.2 ACQUISITIONS

Nike has acquired several apparel and footwear companies over the course of its

history, some of which have since been sold. Its first acquisition was the upscale

footwear company Cole Haan in 1988, followed by the purchase of Bauer Hockeyin

1994. In 2002, Nike bought surf apparel company Hurley International from

founder Bob Hurley. In 2003, Nike paid US$309 million to acquire Converse, makers

of the Chuck Taylor All-Stars line of sneakers. The company acquired Starterin

2004 and Umbro, known as the manufacturers of the England national football

team's kit, in 2008.

In order to refocus on its core business lines, Nike began divesting of some of its

subsidiaries in the 2000s. It sold Starter in 2007 and Bauer Hockey in 2008. The

company sold Umbro in 2012 and Cole Haan in 2013. As of 2017, Nike owns two key

subsidiaries: Converse Inc. and Hurley International.

1.2.1 Finance

Nike will buy back $8 billion of Nike's class B stock in four years after the current $5

billion buyback program is completed in second quarter of fiscal 2013. Up to

September 2012, Nike Inc. has bought back $10 billion of stock.
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Nike was made a member of the Dow Jones Industrial Average in 2013, when it

replaced Alcoa.

On December 19, 2013, Nike's quarterly profit rose due to a 13 percent increase in

global orders for merchandise since April of that year. Future orders of shoes or

clothes for delivery between December and April, rose to $10.4 billion. Nike shares

(NKE) rose 0.6 percent to $78.75 in extended trading.

In November 2015, Nike announced it would initiate a $12 billion share buyback, as

well as a two-for-one stock split, with shares to begin trading at the decreased price

on December 24. The split will be the seventh in company history.

1.3 CONTROVERSY

Nike has contracted with more than 700 shops around the world and has offices

located in 45 countries outside the United States. Most of the factories are located in

Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan,

Philippines, and Malaysia. Nike is hesitant to disclose information about the contract

companies it works with. However, due to harsh criticism from some organizations

like CorpWatch, Nike has disclosed information about its contract factories in its

Corporate Governance Report.

Sweatshops

Nike has been criticized for contracting with factories (known as Nike sweatshops) in

countries such as China, Vietnam, Indonesia and Mexico. Vietnam Labor Watch, an
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activist group, has documented that factories contracted by Nike

have violatedminimum wage and overtime laws in Vietnam as late as 1996, although

Nike claims that this practice has been stopped. The company has been subject to

much critical coverage of the often poor working conditions and exploitation of

cheap overseas labor employed in the free trade zones where their goods are

typically manufactured. Sources for this criticism include Naomi Klein's book No

Logo and Michael Moore documentaries.

Campaigns have been taken up by many colleges and universities, especially anti-

globalisation groups, as well as several anti-sweatshop groups such as the United

Students Against Sweatshops.

As of July 2011, Nike stated that two-thirds of its factories producing Converse

products still do not meet the company's standards for worker treatment. A July

2011 Associated Press article stated that employees at the company's plants

in Indonesia reported constant abuse from supervisors.

Child labor allegations

During the 1990s, Nike faced criticism for the use of child

labor in Cambodia and Pakistan in factories it contracted to manufacture soccer

balls. Although Nike took action to curb or at least reduce the practice, they continue

to contract their production to companies that operate in areas where inadequate

regulation and monitoring make it hard to ensure that child labor is not being used.
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In 2001, a BBC documentary uncovered occurrences of child labor and poor working

conditions in a Cambodian factory used by Nike. The documentary focused on six

girls, who all worked seven days a week, often 16 hours a day.

Strike in China factory

In April 2014, one of the biggest strikes in mainland China took place at the Yue Yuen

Industrial Holdings Dongguan shoe factory, producing amongst others for Nike. Yue

Yuen did underpay an employee by 250 yuan (40.82 US Dollars) per month. The

average salary at Yue Yuen is 3000 yuan per month. The factory employs 70,000

people. This practice was in place for nearly 20 years.

Justin Gatlin sponsorship

In March 2015, Nike drew criticism after announcing a new sponsorship deal with

American sprinter Justin Gatlin who had served two bans for doping. Nike had

previously dropped Gatlin after his second failed drug test and resulting long term

ban. Critics said that Nike was sending out a bad message by endorsing an athlete

who has never been repentant for his actions and still causes widespread discontent

within the sport. English sprinter Marlon Devonish described the deal as "a kick in

the teeth to the 99% of guys who are clean".

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Paradise Papers

On 5 November 2017, the Paradise Papers, a set of confidential electronic

documents relating to offshore investment, revealed that Nike is among the

corporations that used offshore companies to avoid taxes.

Appleby documents detail how Nike boosted its after-tax profits by, among other

maneuvers, transferring ownership of its Swoosh trademark to a Bermudan

subsidiary, Nike International Ltd. This transfer allowed the subsidiary to charge

royalties to its European headquarters in Hilversum, Netherlands, effectively

converting taxable company profits to an account payable in tax-

free Bermuda. Although the subsidiary was effectively run by executives at Nike's

main offices in Beaverton, Oregon -- to the point where a duplicate of the Bermudan

company's seal was needed -- for tax purposes the subsidiary was treated as

Bermuda. Its profits were not declared in Europe and came to light only because of a

mostly unrelated case in US Tax Court, where papers filed by Nike briefly mention

royalties in 2010, 2011 and 2012 totaling $3.86 billion.[95] Under an arrangement

with Dutch authorities, the tax break was to expire in 2014, so another

reorganization transferred the intellectual property from the Bermudan company to

a Dutch commanditaire vennootschap or limited partnership, Nike Innovate CV.

Dutch law treats income earned by a CV as if it had been earned by the principals,

who owe no tax in the Netherlands if they do not reside there.

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1.4 ENVIRONMENTAL RECORD

According to the New England-based environmental organization Clean Air-Cool

Planet, Nike ranked among the top three companies (out of 56) in a survey of

climate-friendly companies in 2007. Nike has also been praised for its Nike

Grindprogram (which closes the product lifecycle) by groups like Climate

Counts. One campaign that Nike began for Earth Day 2008 was a commercial that

featured basketball star Steve Nash wearing Nike's Trash Talk Shoe, which had been

constructed in February 2008 from pieces of leather and synthetic leather waste

from factory floors. The Trash Talk Shoe also featured a sole composed of ground-up

rubber from a shoe recycling program. Nike claims this is the first performance

basketball shoe that has been created from manufacturing waste, but it only

produced 5,000 pairs for sale.

Another project Nike has begun is called Nike's Reuse-A-Shoe program. This

program, started in 1993, is Nike's longest-running program that benefits both the

environment and the community by collecting old athletic shoes of any type in order

to process and recycle them. The material that is produced is then used to help

create sports surfaces such as basketball courts, running tracks, and playgrounds.

A project through the University of North Carolina at Chapel Hill found workers were

exposed to toxic isocyanates and other chemicals in footwear factories in Thailand.

In addition to inhalation, dermal exposure was the biggest problem found. This could

result in allergic reactions including asthmatic reactions.

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1.5 SPONSORSHIP

Ronaldinho (pictured with Barcelona in 2007) appeared in a 2005 Nike

advertisement that went viral on YouTube, becoming the site's first video to reach

one million views.

Nike pays top athletes in many sports to use their products and promote and

advertise their technology and design.

Nike's first professional athlete endorser was Romanian tennis player Ilie Năstase.

The first track endorser was distance runner Steve Prefontaine. Prefontaine was the

prized pupil of the company's co-founder, Bill Bowerman, while he coached at the

University of Oregon. Today, the Steve Prefontaine Building is named in his honor at

Nike's corporate headquarters.

Nike has also sponsored many other successful track and field athletes over the

years, such as Carl Lewis, Jackie Joyner-Kersee and Sebastian Coe. The signing of

basketball player Michael Jordan in 1984, with his subsequent promotion of Nike

over the course of his career, with Spike Lee as Mars Blackmon, proved to be one of

the biggest boosts to Nike's publicity and sales.

Nike has been the official kit sponsor for the Indian cricket team since 2005.

Nike is a major sponsor of the athletic programs at Penn State University and named

its first child care facility after Joe Paterno when it opened in 1990 at the company's

headquarters. Nike originally announced it would not remove Paterno's name from
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the building in the wake of the Penn State sex abuse scandal. After the Freeh Report

was released on July 12, 2012, Nike CEO Mark Parker announced the name Joe

Paterno would be removed immediately from the child development center. A new

name has yet to be announced.

Nike also sponsored association football players such

as Ronaldinho, Ronaldo, Cristiano Ronaldo, Didier Drogba, Neymar, Zlatan

Ibrahimović, Thierry Henry, Wayne Rooney, Francesco Totti, Andrés

Iniesta and Landon Donovan among others.

In 2012, Nike carried a commercial partnership with the Asian Football

Confederation.

In January 2013, Nike signed Rory McIlroy, the then No 1 golfer in the world to a 10-

year sponsorship deal worth $250 million. The deal includes using Nike's range

of golf clubs, a move Nick Faldo previously described as "dangerous" for McIlroy's

game.

On February 21, 2013, Nike announced it suspended its contract with South African

athlete Oscar Pistorius, due to his being charged with premeditated murder.

In August 2014, Nike announced that they will not renew their kit supply deal with

Manchester United after the 2014–15 season, citing rising costs. Since the start of

the 2015–16 season, Adidas has manufactured Manchester United's kit as part of a

world-record 10-year deal worth a minimum of £750 million.

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Nike is currently sponsoring a group of long-distance runners in an attempt to run a

sub-two hour full 26.2 mile marathon. The current world record is 2:02:57. Nike is

putting together a team of “designers, scientists, coaches, and statisticians” with the

goal of having one or more runners break the record by 3 percent in the spring of

2017.

In December 2017, Philippe Coutinho's image was used on the back of Barcelona's

jersey despite the fact Coutinho was a Liverpool player at the time.
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CHAPTER 2

ORGANISATION

STRUCTURE
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2.1 ORGANIZATION STRUCTURE

Nike Company is coming with the latest technology which changed Beauty Product

tag to a different concept i.e. “Digitalization”. They are not only coming with 4G but

they are about to launch with a Digital platform. They have been regressively

working since year to make this project the most successful one. Jio means blessing

and yes this project is and will be blessing for customers as well as people who got

employment from this brand new huge project.

2.1.1 NIKE, Inc. INSIDERS ON Board Members

Name (Connections) Title Age

Mark Parker Chairman, CEO & President 61

Philip Knight Co-Founder and Chairman Emeritus 79

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2.1.2 Other Board Members On Board Members

Name (Connections) Type of Board Members Primary Company Age

Alan Graf Jr. Member of the Board of FedEx Corporation 63

Directors

John Connors Member of the Board of MBS Source, LLC 58

Directors

Timothy Cook Member of the Board of Apple Inc. 56

Directors

John Lechleiter Member of the Board of Pharmaceutical Research 63

Directors and Manufacturers of
America

John Thompson Jr. Member of the Board of NIKE, Inc. 76

Directors

Johnathan Rodgers Member of the Board of NIKE, Inc. 71

Directors

Elizabeth Comstock Member of the Board of NIKE, Inc. 56

Directors

Michelle Peluso Member of the Board of International Business 45

Directors Machines Corporation

John Donahoe II Member of the Board of ServiceNow, Inc. 56

Directors

Travis Knight Member of the Board of LAIKA, LLC 43

Directors

Peter Henry Ph.D. Member of the Board of NIKE, Inc. 48

Directors
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2.2 FUNCTIONAL AREAS

HR Practices:

Today companies are trying to reinvent HR practices. Likewise Nike also is

continuously adopting new changes that can be in mutual benefit of their employees

and organization’s business. Nike human resource team is reconfiguring their HR

processes and run innovative employee engagement programs to improve

motivation among employees and reduce costs.

Nike HR practices includes-

 Talent Acquisition and Talent Management

 Resourcing from referrals, online portals, campus placements and walk ins.

 Payroll Administration

 Compensation Management

 Workforce Management
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CHAPTER 3

COMPLETE PRODUCT

RANGE
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PRODUCT PROFILE
3.1 Footwear

Shoes are Nike's flagship product. The company manufactures different shoes for a

wide variety of sports, such as basketball, football, golf, soccer, baseball,

snowboarding, hockey, tennis and volleyball. It also makes consumer fashion shoes

such as Mary Janes and flip-flops. Nike shoes are designed for efficient sports

performance as well as for aesthetics.

3.2 Apparel

Nike also produces apparel for sports activities, as well as other activities including

dance and yoga. It features different collections for its apparel, including Livestrong,

Nike Pro, Nike Free and SPARQ. In addition, Nike makes casual clothes for men and

women. Many consumers wear Nike clothes not just for sports activities but also for

brand status.

3.3 Equipment

Aside from shoes, Nike also sells sports equipment, such as baseball bats, balls,

swimming caps, rackets and golf clubs. Nike also sells gloves and yoga mats, as well

as agility cones. Other sports equipment it sells includes weights and sports guards

such as knee pads, wrap sleeves and shin guards.

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3.4 Accessories

The company is also well-known for accessories such as watches, bags and socks, as

well as consumer technology such as the Nike+ supplement for the iPod. Nike also

sells rubber bracelets, training DVDs and athletic belts. Many of the bags it sells

feature a particular team such as Manchester United or a university such as UCLA.

3.5 Stores

Nike products are sold in a variety of stores worldwide. Nike products can be bought

online through the company's website, Nike.com. Many department stores also

carry Nike products. Niketown is Nike's leading store with branches in cities such as

Chicago; Portland, Oregon; New York; and Los Angeles. There are also Nike factory

outlets that sell Nike products at a discounted price.

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CHAPTER 4

PLANT LOCATIONS
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4.1 NIKE WORLD HEADQUARTERS

One Bowerman Drive

Beaverton, OR 97005

Phone: 1-503-671-6453

7:30 a.m. - 5:30 p.m. PT, Monday - Friday (except holidays).

4.2 NIKE HEADQUARTERS

Nike European Headquarters

Colosseum 1

1213 NL Hilversum

The Netherlands

Phone: +31 35 6266453

Nike Greater China Headquarters

No. 99, Jiangwancheng Road

Yangpu District

Shanghai 200438

Phone: +86-21-52882828
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NIKE India Pvt Ltd.

Ground & 1st Floor

Olympia Building, No 66/1

Bagmane Tech Park

CV Raman Nagar

Bangalore 560093

India

1800-102-6453 (Toll Free)

Consumercare.india@nike.com
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CHAPTER 5

MARKET SHARE PRODUCT

WISE
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5.1 MARKET SHARE REPORT OF NIKE

Nike has dominated the sneaker world for so many years that it has come to seem

invincible, particularly in the US, its home turf and the world’s biggest sneaker

market.

Lately, though, some holes have started to open up in Nike’s armor. In 2016, for the

first time in more than a decade, Nike didn’t have the top-selling sneaker in the

US. That distinction went to Adidas’s retro Superstar. Last week, Nike laid off

hundreds of employees in a downsizing move that was first announced in June and

will cut about 2% of its workforce, or roughly 1,400 people. Sports-industry analysts

have also become increasingly concerned that the Nike brand, including its premium

Jordan label, is losing its cachet.

For the first time in ages, Nike’s iron grip on the sneaker world is visibly slipping. The

question now is: How much will it slip?

Nike owns enough of the sneaker market that it can afford some stumbles without

falling from the top spot, and that’s especially true in the US. Data from the research

firm NPD Group puts Nike’s US market share, including the Jordan brand, at about

44%. Adidas, its closest competitor, has roughly 11%.

But that doesn’t mean Nike can relax. That 11% of the US market Adidas holds

is nearly double what it had a year ago, putting it at number two in the country—and

most of the share it’s stolen has been from Nike and Jordan. Adidas’s latest
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styles, such as the NMD, are winning over new fans, including even the hardcore

sneaker collectorswho have long worshipped at Jordan’s throne.

Once, Nike was the upstart

Nike hasn’t always ruled the sneaker market, as this chart from a 2013 report by

Samsung’s Economic Research Institute that looked at the global market share of the

major sneaker brands over the years shows:

Nike retook the top spot in the global market in the late 1980s and hasn’t

relinquished it since.("Athletic Footwear Warfare: Surviving in an Oligopoly," by

Samsung Economic Research Institute)

In the 1970s, Nike overtook the former giants of the industry—Puma and Adidas, the

companies created in the split of the German Dassler brothers’ shoe empire. But

Nike saw its fortunes dip in the 1980s, while the newcomer Reebook soared.

Samsung’s Economic Research Institute found that Reebok thrived by appealing to

the “leisure sportsperson.”

Today, despite Nike’s market dominance, Adidas has become the hottest brand in

sneakers by capitalizing on a similar trend. Shoppers are buying up casual,

fashionable footwear, and leaving performance products, especially basketball

shoes, on the shelves. Nike simply hasn’t adjusted as well to give shoppers what they

want.
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The pressure is mounting

In an Aug. 29 note to investors, Morgan Stanley analysts cautioned that Nike’s

problems in North America appear to be worsening. It’s relying more on discounts to

get shoppers buying, threatening to devalue the brand if the markdowns go on

unchecked.

The Jordan brand, which has always thrived on scarcity, may also take a dent as Nike

aggressively pumps up the number of shoes available. Foot Locker CEO Richard

Johnson mentioned on a recent call with investors that sales of certain Jordan styles

had slowed considerably. (It doesn’t help either that, as mentioned, fashion has

shifted away from basketball sneakers.)

Johnson highlighted another issue on that call as well: Nike hasn’t introduced a

breakthrough innovation in years. When he pointed to “the limited availability of

innovative new products” for Foot Locker’s poor quarter, he laid most of the

blame at Nike’s feet, since it accounts for the majority of what Foot Locker stocks.

About 68% Foot Locker’s inventory came from Nike in 2016.

Adidas, on the other hand, is enjoying a strong positive response to its new Boost

soles, a springy technology made of foam pellets on exclusive license from chemical

company BASF. They’re perfect for all those casual sneaker-wearers who want

something comfortable, that also looks good.

Adidas’s momentum, Morgan Stanley noted, may just come down to it having better

products right now. But the brand’s still-growing popularity could help Adidas keep
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claiming Nike’s customers for some time to come. “We may be witnessing a sea

change in consumer preferences which will take years to play out as sales trends

ultimate [sic] come to match mindshare trends,” they write.

Adidas’ Futurecraft 4D, a sneaker with a 3D-printed midsole and one way Adidas is

planning for the future. (Reuters/Joe Penney)

Outside the US, a more precarious situation

So what happens if Nike continues to slip? It’s not going to lose its crown anytime

soon, but there’s no company better positioned to take advantage than Adidas—and

not just in the US.

In Western Europe and China—two huge markets—the sales gap between Nike and

Adidas is much smaller. China is the world’s second-biggest spender on sportswear,

according to the research firm Euromonitor, and still has a lot of room for sales to

grow, which is why sportswear companies look to it as a massive reservoir of

untapped income. Nike is currently the market leader in China, but Adidas is catching

up fast enough that it could conceivably overtake Nike soon. Soccer-loving Western

Europe, meanwhile, is Adidas’s home field, and the brand is historically strong there.

Nike’s sales will likely keep growing. But it may see its profits squeezed, along with

its share of the global pie.

Nike didn’t get to the top of the sneaker world by coasting, though. It’s still a

powerhouse of a company, dedicated to innovation and getting better at everything

it does. It has some major projects in the works to speed up its supply chain so it can
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deliver customers what they want as soon as they want it. Fashion trends in the

sneaker world, like the clothing world, also come and go much more quickly than

they used to. The winds could easily shift back in Nike’s favor in the next couple

years.

And there may be an upside to all this for consumers: It could open up the field to

more genuine competition. Nike has been practically in a league of its own for years,

but it’s facing a tough brawl against Adidas. The pressure is on for Nike to really

listen to consumers about what they want—and deliver it.

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CHAPTER 6

MARKETING STRATEGIES
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6.2 MARKETING MIX

6.2.1 PRODUCT MARKETING

Product marketing deals with the first of the "4P"'s of marketing, which are Product,

Pricing, Place, and Promotion. Product marketing, as opposed to product

management, deals with more outbound marketing tasks. For example, product

management deals with the nuts and bolts of product development within a firm,

whereas product marketing deals with marketing the product to prospects,

customers, and others. Product marketing, as a job function within a firm, also

differs from other marketing jobs such as Marcom or marketing communications,

online marketing, advertising, marketing strategy, etc.

A Product Market is something that is referred to when pitching a new product to

the general public. The people you are trying to make your product appeal to is your

consumer market. For example: If you were pitching a new video game console

game to the public, your consumer market would probably be a younger/teenage

market (depending on the type of game). Thus you would carry out market research

to find out how best to release the game. Likewise, a massage chair would probably

not appeal to younger children, so you would market your product to an older

generation.
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6.2.2 PRODUCT PRICING

Pricing is one of the four p's of the marketing mix. The other three aspects are

product, promotion, and place. It is also a key variable in microeconomic price

allocation theory. Price is the only revenue generating element amongst the 4ps,the

rest being cost centers. Pricing is the manual or automatic process of applying prices

to purchase and sales orders, based on factors such as: a fixed amount, quantity

break, promotion or sales campaign, specific vendor quote, price prevailing on entry,

shipment or invoice date, combination of multiple orders or lines, and many others.

Automated systems require more setup and maintenance but may prevent pricing

errors.

The effective price is the price the company receives after accounting for discounts,

promotions, and other incentives.

Price lining is the use of a limited number of prices for all your product offerings. This

is a tradition started in the old five and dime stores in which everything cost either 5

or 10 cents. Its underlying rationale is that these amounts are seen as suitable price

points for a whole range of products by prospective customers. It has the advantage

of ease of administering, but the disadvantage of inflexibility, particularly in times of

inflation or unstable prices.

A loss leader is a product that has a price set below the operating margin. This

results in a loss to the enterprise on that particular item, but this is done in the hope
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that it will draw customers into the store and that some of those customers will buy

other, higher margin items.

Promotional pricing refers to an instance where pricing is the key element of the

marketing mix.

The price/quality relationship refers to the perception by most consumers that a

relatively high price is a sign of good quality. The belief in this relationship is most

important with complex products that are hard to test, and experiential products

that cannot be tested until used (such as most services). The greater the uncertainty

surrounding a product, the more consumers depend on the price/quality hypothesis

and the more of a premium they are prepared to pay. The classic example of this is

the pricing of the snack cake Twinkies, which were perceived as low quality when the

price was lowered. Note, however, that excessive reliance on the price/quantity

relationship by consumers may lead to the raising of prices on all products and

services, even those of low quality, which in turn causes the price/quality

relationship to no longer apply.

Premium pricing (also called prestige pricing) is the strategy of consistently pricing

at, or near, the high end of the possible price range to help attract status-conscious

consumers. A few examples of companies which partake in premium pricing in the

marketplace include Rolex and Bentley. People will buy a premium priced product

because:

1. They believe the high price is an indication of good quality;

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2. They believe it to be a sign of self worth - "They are worth it" - It

authenticates their success and status - It is a signal to others that they are a

member of an exclusive group;

3. They require flawless performance in this application - The cost of product

malfunction is too high to buy anything but the best - example : heart

pacemaker.

The term Goldilocks pricing is commonly used to describe the practice of providing a

"gold-plated" version of a product at a premium price in order to make the next-

lower priced option look more reasonably priced; for example, encouraging

customers to see business-class airline seats as good value for money by offering an

even higher priced first-class option. Similarly, third-class railway carriages in

Victorian England are said to have been built without windows, not so much to

punish third-class customers (for which there was no economic incentive), as to

motivate those who could afford second-class seats to pay for them instead of taking

the cheaper option. This is also known as a potential result of price discrimination.

The name derives from the Goldilocks story, in which Goldilocks chose neither the

hottest nor the coldest porridge, but instead the one that was "just right". More

technically, this form of pricing exploits the general cognitive bias of aversion to

extremes. This practice is known academically as "framing". By providing three

options (i.e. small, medium, and large; first, business, and coach classes) you can
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manipulate the consumer into choosing the middle choice and thus, the middle

choice should yield the most profit to the seller, since it is the most chosen option.

Demand-based pricing is any pricing method that uses consumer demand - based on

perceived value - as the central element. These include : price skimming, price

discrimination and yield management, price points, psychological pricing, bundle

pricing, penetration pricing, price lining, value-based pricing, geo and premium

pricing. Pricing factors are manufacturing cost,market place,compitition,maket

condition,Quality of product.

Multidimensional pricing is the pricing of a product or service using mutliple

numbers. In this practice, price no longer consists of a single monetary amount (e.g.,

sticker price of a car), but rather consists of various dimensions (e.g., monthly

payments, number of payments, and a downpayment). Research has shown that this

practice can significantly influence consumers' ability to understand and process

price information

6.2.3 PROMOTION

Promotion involves disseminating information about a product, product line, brand,

or company. It is one of the four key aspects of the marketing mix. (The other three

elements are product marketing, pricing, and distribution.)

Promotion is generally sub-divided into two parts:

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 Above the line promotion: Promotion in the media (e.g. TV, radio,

newspapers, Internet and Mobile Phones) in which the advertiser pays an

advertising agency to place the ad

 Below the line promotion: All other promotion. Much of this is intended to be

subtle enough that the consumer is unaware that promotion is taking place.

E.g. sponsorship, product placement, endorsements, sales promotion,

merchandising, direct mail, personal selling, public relations, trade shows

The specification of these four variables creates a promotional mix or promotional

plan. A promotional mix specifies how much attention to pay to each of the four

subcategories, and how much money to budget for each. A promotional plan can

have a wide range of objectives, including: sales increases, new product acceptance,

creation of brand equity, positioning, competitive retaliations, or creation of a

corporate image.

6.2.4 DISTRIBUTION

Distribution (or place) is one of the four elements of marketing mix. An organization

or set of organizations (go-betweens) involved in the process of making a product or

service available for use or consumption by a consumer or business user.

6.2.5 Channels

A number of alternate 'channels' of distribution may be available:

 Selling direct, such as via mail order, Internet and telephone sales

 Agent, who typically sells direct on behalf of the producer

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 Distributor (also called wholesaler), who sells to retailers

 Retailer (also called dealer or reseller), who sells to end customers

 Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be

just as important for moving a service from producer to consumer in certain sectors,

since both direct and indirect channels may be used. Hotels, for example, may sell

their services (typically rooms) directly or through travel agents, tour operators,

airlines, tourist boards, centralized reservation systems, etc.

There have also been some innovations in the distribution of services. For example,

there has been an increase in franchising and in rental services - the latter offering

anything from televisions through tools. There has also been some evidence of

service integration, with services linking together, particularly in the travel and

tourism sectors. For example, links now exist between airlines, hotels and car rental

services. In addition, there has been a significant increase in retail outlets for the

service sector. Outlets such as estate agencies and building society offices are

crowding out traditional grocers from major shopping areas.

6.2.6 CHANNEL MOTIVATION

It is difficult enough to motivate direct employees to provide the necessary sales and

service support. Motivating the owners and employees of the independent

organizations in a distribution chain requires even greater effort. There are many

devices for achieving such motivation. Perhaps the most usual is `incentive': the
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supplier offers a better margin, to tempt the owners in the channel to push the

product rather than its competitors; or a competition is offered to the distributors'

sales personnel, so that they are tempted to push the product.

6.2.7 MONITORING AND MANAGING CHANNELS

In much the same way that the organization's own sales and distribution activities

need to be monitored and managed, so will those of the distribution chain.

In practice, many organizations use a mix of different channels; in particular, they

may complement a direct salesforce, calling on the larger accounts, with agents,

covering the smaller customers and prospects.

6.2.8 SERVICE

A service is the non-material equivalent of a good. A service provision is an economic

activity that does not result in ownership, and this is what differentiates it from

providing physical goods. It is claimed to be a process that creates benefits by

facilitating either a change in customers, a change in their physical possessions, or a

change in their intangible assets.

By supplying some level of skill, ingenuity,and experience, providers of a service

participate in an economy without the restrictions of carrying stock (inventory) or

the need to concern themselves with bulky raw materials. On the other hand, their

investment in expertise does require marketing and upgrading in the face of

competition which has equally few physical restrictions.

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Any service can be completely, consistently and cleary specified by means of the

following 12 standard attributes

1. Service Consumer Benefit(s)

2. Service-specific Functional Parameter(s)

3. Service Delivery Point

4. Service Consumer Count

5. Service Readiness Time(s)

6. Service Support Time(s)

7. Service Support Language(s)

8. Service Fulfillment Target

9. Maximum Impairment Duration per Incident

10. Service Delivering Duration

11. Service Delivery Unit

12. Service Delivering Price

The meaning and content of these attributes are:

1. Service Consumer Benefits describe the (set of) benefits which are callable,

receivable and effectively utilizable for any authorized service consumer and which

are provided to him as soon as he requests the offered service. The description of

these benefits must be phrased in the terms and wording of the intended service

consumers.
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2. Service-specific Functional Parameters specify the functional parameters which

are essential and unique to the respective service and which describe the most

important dimension of the service output, e.g. maximum e-mailbox capacity per

registered and authorized e-mail service consumer.

3. Service Delivery Point describes the physical location and/or logical interface

where the benefits of the service are made accessible, callable and receivable to the

authorized service consumers. At this point and/or interface, the preparedness for

service delivery can be assessed as well as the effective delivery of the service itself

can be monitored and controlled.

4. Service Consumer Count specifies the number of intended, identified, named,

registered and authorized service consumers which are allowed and enabled to call

and utilize the defined service for executing and/or supporting their business tasks

or private activities.

5. Service Readiness Times specify the distinct agreed times of day when

 the described service consumer benefits are

o accessible and callable for the authorized service consumers at the

defined service delivery point

o receivable and utilizable for the authorized service consumers at the

respective agreed service level

 all service-relevant processes and resources are operative and effective

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 all service-relevant technical systems are up and running and attended by the

operating team

 the specified service benefits are comprehensively delivered to any

authorized requesting service consumer without any delay or friction.

The time data are specified in 24 h format per local working day and local time,

referring to the location of the intended service consumers.

6. Service Support Times specify the determined and agreed times of day when the

usage and consumption of the contracted services is supported by the service desk

team for all identified, registered and authorized service consumers within the

service customer's organizational unit or area. The service desk is the single point of

contact for any service consumer inquiry regarding the contracted and delivered

services. During the defined service support times, the service desk can be reached

by phone, e-mail, web-based entries and/or fax, respectively. The time data are

specified in 24 h format per local working day and local time, referring to the

location of the intended service consumers.

7. Service Support Languages specifies the languages which are spoken by the

service desk team(s) to the service consumers calling them.

8. Service Fulfillment Target specifies the service provider's promise of effective and

seamless delivery of the defined benefits to any authorized service consumer

requesting the service within the defined service times. It is expressed as the

promised minimum ratio of the counts of successful individual service deliveries

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related to the counts of called indivdual service deliveries. The effective service

fulfillment ratio can be measured and calculated per single service consumer or per

consumer group and may be referred to different time periods (workday,

calenderweek, workmonth, etc.)

9. Maximum Impairment Duration per Incident specifies the allowable maximum

elapsing time [hh:mm] between

 the first occurrence of a service impairment, i.e. service quality degradation

or service delivery disruption, whilst the service consumer consumes and

utilizes the delivered service,

 and the full resumption and complete execution of the service delivery to the

content of the affected service consumer.

10. Service Delivering Duration specifies the promised and agreed maximum period

of time for effectively delivering all specified service consumer benefits to the

requesting service consumer at the defined service delivery point.

11. Service Delivery Unit specifies the basic portion for delivering the defined service

consumer benefits. The service delivery unit is the reference and mapping object for

all cost for service generation and delivery as well as for charging and billing the

consumed service volume to the service customer who has ordered the service

delivery.
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12. Service Delivering Price specifies the amount of money the service customer has

to pay for the consumption of distinct service volumes. Normally, the service

delivering price comprises two portions

 a fixed basic price portion for basic efforts and resources which provide

accessibility and usability of the service delivery functions, i.e. service access

price

 a price portion covering the service consumption based on

o fixed flat rate price per authorized service consumer and delivery

period without regard on the consumed service volumes,

o staged prices depending on consumed service volumes,

o fixed price per particularly consumed service delivering unit.

SERVICE DELIVERY

The delivery of a service typically involves six factors:

 The accountable service provider and his service suppliers (e.g. the people)

 Equipment used to provide the service (e.g. vehicles, cash registers)

 The physical facilities (e.g. buildings, parking, waiting rooms)

 The requesting service consumer

 Other customers at the service delivery location

 Customer contact
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The service encounter is defined as all activities involved in the service delivery

process. Some service managers use the term "moment of truth" to indicate that

defining point in a specific service encounter where interactions are most intense.

Many business theorists view service provision as a performance or act (sometimes

humorously referred to as dramalurgy, perhaps in reference to dramaturgy). The

location of the service delivery is referred to as the stage and the objects that

facilitate the service process are called props. A script is a sequence of behaviours

followed by all those involved, including the client(s). Some service dramas are

tightly scripted, others are more ad lib. Role congruence occurs when each actor

follows a script that harmonizes with the roles played by the other actors.

In some service industries, especially health care, dispute resolution, and social

services, a popular concept is the idea of the caseload, which refers to the total

number of patients, clients, litigants, or claimants that a given employee is presently

responsible for. On a daily basis, in all those fields, employees must balance the

needs of any individual case against the needs of all other current cases as well as

their own personal needs.

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6.3 MARKET STRATEGY

A marketing strategy can serve as the foundation of a marketing plan. A marketing

plan contains a set of specific actions required to successfully implement a marketing

strategy. For example: "Use a low cost product to attract consumers. Once our

organization, via our low cost product, has established a relationship with

consumers, our organization will sell additional, higher-margin products and services

that enhance the consumer's interaction with the low-cost product or service."

A strategy consists of a well thought out series of tactics to make a marketing plan

more effective. Marketing strategies serve as the fundamental underpinning of

marketing plans designed to fill market needs and reach marketing objectives. Plans

and objectives are generally tested for measurable results.

A marketing strategy often integrates an organization's marketing goals, policies, and

action sequences (tactics) into a cohesive whole. Similarly, the various strands of the

strategy , which might include advertising, channel marketing, internet marketing,

promotion and public relations can be orchestrated. Many companies cascade a

strategy throughout an organization, by creating strategy tactics that then become

strategy goals for the next level or group. Each one group is expected to take that

strategy goal and develop a set of tactics to achieve that goal. This is why it is

important to make each strategy goal measurable.

TYPES OF STRATEGIES
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Marketing strategies may differ depending on the unique situation of the individual

business. However there are a number of ways of categorizing some generic

strategies. A brief description of the most common categorizing schemes is

presented below:

 Strategies based on market dominance - In this scheme, firms are classified

based on their market share or dominance of an industry. Typically there are

three types of market dominance strategies:

o Leader

o Challenger

o Follower

 Porter generic strategies - strategy on the dimensions of strategic scope and

strategic strength. Strategic scope refers to the market penetration while

strategic strength refers to the firm’s sustainable competitive advantage.

o Product differentiation

o Market segmentation

 Innovation strategies - This deals with the firm's rate of the new product

development and business model innovation. It asks whether the company is

on the cutting edge of technology and business innovation. There are three

types:

o Pioneers

o Close followers
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o Late followers

 Growth strategies - In this scheme we ask the question, “How should the firm

grow?”. There are a number of different ways of answering that question, but

the most common gives four answers:

o Horizontal integration

o Vertical integration

o Diversification

o Intensification

A more detailed scheme uses the categories:

 Prospector

 Analyzer

 Defender

 Reactor

 Marketing warfare strategies - This scheme draws parallels between

marketing strategies and military strategies.

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CHAPTER 7

COMPETITORS
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COMPETITORS PROFILE

7.1 BATA

Bata is India’s largest footwear company. The company was started in 1931 and

make shoe for men, women and kids.

Popular Brand Names: Ambassdor, Comfit, Marie Clarie, PotaPata, Safari, North

Star, Power etc

7.2 REEBOK

Reebok is also a global brand with huge presence in India.

Popular Brand Names: All Terrain Thunder, Reebok Classic, Plimton, Zjet, Royal

Badge etc.

7.3 LIBERTY

Liberty is an Indian company worth Rs 650 Crore. It operates in 20 different

countries.

Popular Brand Names: Coolers, Fortune, Force 10, Gliders and Windsor, Force 10,

Gliders, Senorita and Tiptopp, Footfun, Force 10, Gliders, Prefect etc

7.4 ADIDAS

Actually Adidas is the parent company of Reebok and it worth over $20 Billion or

more.

Popular Brand Names: FG/AG Cleats, Messi Version, Pure Boost, Supernova, Pure

Boost, Ace etc

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7.5 PARAGON

Paragon is an India company established in the year 1975 in Kerala.

Popular Brand Names: Max, Solea, Walkie, Vertex, Escoute, Slickers, Meriva,

Stimulus, Fookids, Para Lite, School Worth

7.6 WOODLAND

Woodland is owned by Aero Group with over 3000 multi brand stores in several

countries. The company was founded in year 1992 in Canada.

Popular Brand Names: LB, LS, LD, LP, GC, GB etc

7.7 PUMA

Puma a German company founded in the year 1948.

Popular Brand Names: Evo Speed, Mobium Elite Speed Ferrari, IGNITE, Karbon,

Voltaic, Pulse, Faas, Expedite etc.

7.8 RED TAPE

Red Tape owned by Mirza International Limited was founded in the year 1996. The

brand ambassador is Salman Khan.

Popular Brand Names: RTS range for shoes and RSS for Sandals etc

7.9 RELAXO

Relaxo is an Indian company founded in 1984 and went public in 1995. Relaxo worth

over Rs 1000 Crore with over 10 manufacturing units across India.

Popular Brand Names: Hawaii, Sparx, Casualz, Flite, Schoolmate, Elena

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7.10 ACTION

Action is one of the iconic brands of the country and it is owned by Action Group. It

has some of the popular brand names.

Popular Brand Names:a Campus, Flotter, Dotcom, Hooha, Milano, Fun Time,

Chanchal, Micro, Florin, Easy Line, Roaming, Fly Float, School Time, Health Plus, Eva

Flotter, Synergy Shoes, Mausam

7.11 LOTTO

Lotto is global brand with a presence in India also.

Popular Brand Names: Shock-Off, ReactiveArch, Syn-Pulse, Dry Out Tech, Puntoflex,

Dual Density, Longlast 40, Reactive Insole

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CHAPTER 8

DATA ANALYSIS
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8.1 DATA ANALYSIS AND INTERPRETATION

AGE

Age considered as an important factor which affects the buying habits of individuals

like as preferences of young persons are differ as compared to old ones.

Table No.1

AGE (IN YEARS) FREQUENCT OF PERCENTAGE OF

RESPONDENT RESPONDENTS
15-25 23 46
26-35 27 54
Figure No.1

AGE OF RESPONDENT
%OF RESPONDENT

54%
52%
50%
48% 54%

46% 26-…

44% 46%
15-25
42%
15-25 26-35
AGE

INTERPRETATION: Analysis indicate that out of 50 respondents 23 persons belongs

to age group between 15-25 and another 27 persons belong to age group of 26-35

years old. Teenagers like to wear sports shoes and younger people prefer to wear

formal shoes.
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EDUCATION LEVEL OF RESPONDENTS

Education greatly influenced the choice, preference and habit of a person. Many

living habits learn from education. Education makes him aware about the running

fashion.

Table No.2

EDUCATION LEVEL FREQUENCT OF PERCENTAGE OF

RESPONDENT RESPONDENTS
U. GRADUATE 19 38
GRADUATE 16 32
POST GRADUATE 5 10
ANY OTHER 10 20
Figure No.2

INTERPRETATION: Studies revealed that 38% respondents are under graduate and

they prefer to wear sport shoes. There are 32% persons are graduate and they wear

shoes according to latest fashion and 10% respondents are post graduate and they

prefer to wear formal shoes. There are 20% respondents who belong to another field

of courses.
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TYPE OF FAMILY

Family is a group comprising a husband and wife and their dependent children,

constituting a fundamental unit in the organization of society.

Table No.3

TYPE OF FAMILY FREQUENCY OF PERCENTAGE OF

RESPONDENTS RESPONDENT
NUCLEAR 27 54
JOINT 23 46
Figure No.3

TYPE OF FAMILY

54%
%OF RESPONDENT

52%

50%

48% 54%

joint
46%
46% NUCLEAR
44%

42%
NUCLEAR JOINT
TYPE OF FAMILY

INTERPRETATION: Family plays an important role in decision making. Data consists of

54% nuclear families where family members take their own decisions and have

enough money to spend. There are 46% respondents come from joint families and

they take buying decision according to budget of the family.

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MARITAL STATUS

Marriage is a social union or legal contract between people that creates kinship.

Table No.4

MARITAL STATUS FREQUENCY OF PERCENTAGE OF

RESPONDENTS RESPONDENT
MARRIED 19 38
UNMARRIED 31 62
Figure No.4

MARITAL STATUS
70%
% OF RESPONDENT

60%
62%
50%
40%
30% 38%

20% UNMARRIED
10%
MARRIED
0%
MARRIED UNMARRIED
MARITAL STATUS

INTERPRETATION: Data consists of 38% married respondents who buy branded

shoes after considering price and other attributes of the product. And another 62%

respondent takes their own decision and they spend money according to their will.
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INCOME LEVEL

For household and individual income is the sum of all the wages, salaries, profits,

interest’s payments, rents and other forms of earning received in a given period of

time?

Table No.5

INCOME (IN 000) FREQUENCY OF PERCENTAGE OF

RESPONDENTS RESPONDENT
5-10 10 20
10-15 12 24
15-20 13 26
20&ABOVE 15 30
Figure No.5

FAMILY INCOME
30%
% OF RESPONDENT

25%
20%
15% 26% 30%
20% 24%
10%
5%
0% %OF RESPONDENT

INCOME LEVEL

INTERPRETATION: Data indicate that 20% belong to income category of Rs 5-10and

24% fall between Rs 10-15. There is 26% fall between income categories of 15-20.

And another 30% come under income group of 20&above. Low income group prefer

to wear unbranded shoes

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TYPE OF SHOES LIKE TO WEAR

Type of shoe a customer wants to wear depends upon his choice and profession.

Table No.6

TYPE OF SHOES FREQUENCY OF PERCENTAGE OF

RESPONDENT RESPONDETS
FORMAL 20 40
SPORTS 14 28
CASUAL 12 24
ANY OTHER 4 8
Figure No.6

8%
FORMAL

24% 40%
SPORTS

CASUAL

ANY
28% OYHER

INTERPRETATION: It is analyzed that 40% peoples prefer to wear formal shoes and

these shoes are mostly referred by businessmen and professionals.

Sports shoes are first preferred by young hunks, sportsmen and college going

students.

Casual shoes are worn on special occasions.

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PRESENT CONSUMERS OF BRANDED SHOES

Branded shoes represent status symbol of a person in the society.

Table No.7

RESPONSES FREQUENCY OF PERCENTAGE OF

RESPONDENTS RESPONDENTS
YES 34 68
NO 10 20
INDIFFERENT 6 12
Figure No.7

present consumers of branded

80%
70% shoes
%of respondents

60%
50%
40%
68%
30%
20%
10% 20%
12%
0%
yes no indifferent
Responses

INTERPRETATION: The analysis showed that 68% consumers like to wear branded

shoes. There are other 20% consumers who never wear branded shoes and 12% not

even conscious about branded shoes.

.
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BRAND AWERENESS OF RESPONDENTS

A consumer can buy any product only when he or she aware about the availability of

that product in the market.

Table No.8

BRANDS FREQUENCY OF PERCENTAGE OF

RESPONDENTS RESPONDENT
NIKE 30 60
ACTION 24 48
ADIDAS 38 76
REEBOK 31 62
ANY OTHER 12 24
Figure No.8

24%
NIKE
60%
62% ACTION
48% ADIDAS
76%
REEBOK
ANY OTHER

INTERPRETATION: Analysis revealed that Adidas is most popular brand among

consumers so it serves 76% customers. NIKE and REEBOK have also strong place in

the market and they both fetch 60% and 62% customers respectively. There is also

strong competition among them. There are 48%of the consumers are aware about

Action shoes.
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BRAND LIKE THE MOST

A customer like only that brand which provide him or her more satisfaction as

compared to other brands available in the market.

Table No.9

BRANDS FREQUENCY OF PERCENTAGE OF

RESPONDENT RESPONDENTS
NIKE 11 22
ACTION 5 10
ADIDAS 19 38
REEBOK 13 26
ANY OTHER 2 4
Figure No.9

Brand like the most

40%
%of respondent

35%
30%
25% NIKE
20% 38%
15% 26% ACTION
10% 22%
5% 10% ADIDAS
0% 4%
NIKE ACTION ADIDAS REEBOK ANY REEBOK
OTHER
ANY OTHER
Name of brand

INTERPRETATION: The image of the brand affects the purchasing decision; study

concludes that Adidas is popular brand among other brands and 38% respondents

using it. There are 26% customers wearing Reebok shoes, 22% wearing Nike shoes

and 10% wearing Action shoes. There is 4% respondent wearing other shoes.
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PURCHASING PLACE

Place play an important role in the marketing of products.

Table No.10

PLACE FREQUENCY OF RESPONDENT PERCENTAGE OF

RESPONDENTS
DEPARTMENTAL STORE 9 18

ORDINARY SHOWROOM 17 34

EXCLUSIVE SHOWROOM 20 40

ANY OTHER 4 8

Figure No.10

45%
40%
purchasing place
% of respondent

35%
30%
25%
20% 40%
15% 34%
10% 18%
5% 8%
0%
D. STORE O.SHOWROOM EX. SHOWROOM ANY OTHER
place

INTERPRETATION: Most of the consumers prefer to buy branded shoes from

exclusive showroom and their percentage is 40% and 34% like to buy from ordinary

showrooms and 18%, consumer go to departmental stores.

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ADVERTISING MEDIA

Advertising is the art of influencing human action to buy or possess ones product.

The term ‘media’ refers to the mean through which the advertising information is

communicated by the advertiser to the prospective customers.

Table No.11

TYPE OF MEDIA FREQUENCY OF PERCENTAGE OF

RESPONDENT RESPONDENTS
ADVERTISEMENT 13 26
FRIENDS 9 18
SALES PERSONS 19 38
EXCLUSIVE SHOWROOM 9 18
ANY OTHER NIL NIL
Figure No.11

Advertising media
E.SHO ADVERT
WROO ISEMEN
M T
18% 26%

FRIEND
S
SALESP 18%
ERSON
38%

INTERPRETATION: Analysis revealed that 38% of the total respondents become

aware about particular brands through salespersons, 26%through advertisement,

18% through friends, and another 18% through exclusive showroom.

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AFFECT OF ADVERTISEMENT ON BUYING DECISION

Advertising provides maximum information about the availability of products to

consumers, so they can select appropriate products.

Table No.12

RESPONSES FREQUENCY OF PERCENTAGE OF

RESPONDENT RESPONDENTS
YES 36 72
NO 14 28
Figure No.12

80% Affect of advertisement

70%
%of respondents

60%
50%
40% 72%
30%
20%
28%
10%
0%
YES NO
Responses

INTERPRETATION: To measure the effective of advertisement it is necessary to know

the effect of advertisement on the consumer, as study indicates 72% are those

whose purchasing decision is affected by advertisement and 28%respondent’s

decision is not affected by advertisement.

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EFFECT OF PRICE

Price may be defined as money consideration asked for or offered or exchanged for a

specified unit of a good or service. Prices are generally determined by market

conditions.

Table No.13

RESPONSES FREQUENCY OF PERCENTAGE OF

RESPONDENT RESPONDENTS
YES 39 78
NO 11 22
Figure No.13

Effect of price

80%
%of respondents

yes
60%
no
40% 78%

20%
22%
0%
YES
NO

Responses

INTERPRETATION: Analysis shows that 78% respondents change their purchasing

decision if there is any increase in price and 22%respondents do not change their

decision even if there is any increase in price because of brand image.

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CHAPTER 9

MAJOR CHALLENGES FOR

GROWTH
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9.1 MAJOR CHALLENGES FOR GROWTH

9.1.1 The apparel industry is struggling

Nike has long been viewed as immune to the struggles of the apparel industry, but

the sector s still ailing and consumers for the most part don't want to spend money

on apparel.

Stores that sell Nike merchandise have been faltering, too, such as Sports Authority,

which filed for bankruptcy earlier this year. And Macy's sells Nike, and though the

Nike section remains one of Macy's Herald Square's only pristine sections, Macy's is

still struggling to drive traffic to its stores. (And The Journal points out that Nike's

push for online sales has hurt smaller businesses that sell the brand.)

A recently Morgan Stanley report predicts that apparel and footwear sales will grow

1-3% over the next three months, but the report showed that year-over-year growth

on a 3-month average for clothing and accessory stores were down -5%. The

sporting goods, hobby, book, and music store category was up 4.9%.

9.1.2 Women's athleisure is getting more crowded by the day.

There are the major competitors - like Lululemon and Under Armour - and then

there are more niche brands, like the ultra-luxe Sweaty Betty and Bandier, and

Outdoor Voices, pictured above, which prides itself on branding that focuses on fun,

rather than being competitive and the best. In other words, its the anti-Nike, and
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that could be appealing to girls who sought an alternative to Nike's "just do it"

mentality.

Though in sheer size none of these brands - even the rapidly growing Under Amour -

have nothing on Nike, The Journal points to an NPD study that says there are over

700 athleisure options for women to wear these days. Put all of these smaller brands

together, and you could have an actually viable threat to Nike's market share.

9.1.3 The most popular product might be going out of style.

The Journal highlights how Foot Locker, and a recent UBS note seconds this notion,

highlighting how investors are concerned for how basketball trends are slowing

down. This is especially a concern since basketball apparel accounts for 12-14% of

Nike's business. In good news, though, UBS says that the trend for Air Jordan

sneakers are still "strong."

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9.2 SWOT ANALYSIS

Strengths

The strengths of Nike are pretty straightforward. First and the most important one

(see the picture below) is a significant amount of brand diversity. Nike, with its

famous Swoosh slogan and the previously mentioned slogan “Just Do It!” is one of

the most recognized brands in the world and occupies first place in the Top 50

ranking of brands appreciated by millennials, ahead of corporations such as Apple,

Microsoft or Coca-Cola. The company has contracts with the most famous world

athletes such as Cristiano Ronaldo, LeBron James and Tiger Woods which only

strengthens its image as one that is professional, innovative and top quality.

The brand, of course, has a strong impact on the valuation of the company and its

current growth. Nike currently employs more than 60,000 people around the globe

and its stock is now reaching the highest levels in its history. The Market Cap of the

Oregon-based corporation is now equal to approx. $112 billion, which makes it a

tasty morsel for investors and gives the company vast amounts of money to invest

further in innovation and new markets development.

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Opportunities

Why is Nike so powerful right now? The foremost reason is that it can perfectly

capable of making use of the opportunities which are ahead of it. From our analysis,

we can clearly see that the most important opportunity for Nike right now is the

China market.

Interestingly, Nike is one of the few brands which are actually succeeding in this

Asian market. The analysts explain this growth by Nike’s attitude towards Chinese

customers. Brian Buchwald, chief executive of the consumer intelligence company

Bomoda says that “Nike is perhaps the pre-eminent foreign company in building

direct relationships with the Chinese consumer outside of Apple”. This strategy can

result in even bigger profits in the near future, especially keeping in mind the fact

that the Chinese premium sportswear market is still far from its saturation point.

But the growth in China is only part of a bigger picture. Consumers around the globe

are more and more focused on being healthy and fit. Marathons across the world

attract more and more participants. Due to a number of reasons, including the

pressure of better health, achieving goals and even being trendy, running as a

lifestyle has become more popular than ever.

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Weaknesses

But Nike is not only about strengths and opportunities. As you can see in the picture

below, the relationship between the weaknesses of the American company and its

opportunities is also quite strong. It means that some of the weaknesses that Nike

has can actually limit the use of its opportunities.

Interestingly, the most prominent among these weaknesses is something connected

to Nike’s biggest asset — its brand. Even though the footwear company dominates

the American market, the competition such as Under Armour is growing fast. This

means that each problem with Nike’s brand can cause its competitors to grow,

especially in the fickle millennial market.

Nike has learned that being in the spotlight can cause a lot of problems. During the

Berlin Marathon, Eliud Kipchoge failed to set the world record because his shoes

which were made by Nike disintegrated before the entire world. In March 2015, Nike

signed a new sponsorship deal with the American sprinter Justin Gatlin and caused a

lot controversy because Gatlin cannot be easily seen as a positive archetype of the

modern athlete — he has previously had two doping bans and was suspended for

four years between 2006-2010.

But it is not only about technical issues and controversial sponsorships. Nike still has

to struggle with the image of being a greedy American corporation which exploits
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poor people in emerging markets, one which darkened the bright image of the

company in the late 90’s. A series of scandals regarding poor labor conditions in Nike

factories in Asia almost caused the American giant to collapse. The workers in

countries such as Vietnam were earning as low as $47 a month, working overtime,

having restricted access to toilets and water during their workday and were the

object of physically and verbally abusive treatment. This caused a lot of protests

around the globe and propagated a new modified version of Nike’s slogan: “Just

DON’T do it.”

Apparently, a lot has changed since then and Nike has become more transparent and

socially responsible, but the memory of its uncomfortable past only shows that the

trust for the brand is not a given, and Nike must focus on carefully nurturing it.

Threats

The reason that Nike must be careful is that it operates in a very variable market. In

retail, everything changes quickly, and young consumers follow the trends and move

from one brand to another. Even though, as Mark Parker, the Nike CEO says, that

people still prefer premium brands, it is possible that the market will change and

Nike will have to find a new niche for its customers.

The competition, however, is still solid, and, therefore, one of the threats for Nike is

that it can find itself in a massive price war where similar but cheaper brands can
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expand their share of the global market. It may be too soon for Nike to be worried,

but a warning sign for them can be the case of Adidas, although it still holds the no. 1

in the world sports apparel market share, it has fallen dramatically in the footwear

market in the United States, giving way to newer brands such as Under Armour or

New Balance.
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CHAPTER 10

FUTURE PLANS
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10.1 FUTURE PLANS OF NIKE

Determination that everyone in the company understands and embraces the

company values, as well as benefits from the experience and integrity of their

colleagues. Only with self-belief will individuals have the confidence to make things happen,

take the tough decisions and realize their ambitions for themselves and, ultimately, for the

business.

10.1.1 Entrepreneurship

Few businesses succeed without great ideas. NIKE has been built on them and needs

them to flow relentlessly hour by hour, day by day. This demands a willingness to

think outside the box, to zig where others zag and to seek inspiration beyond the

more obvious boundaries of our business universe. Such creativity has inspired the

NIKE brand strategy. It will also be needed to make it a reality.

10.1.2 GROWTH DRIVERS

The company has a very comprehensive distribution network which comprises its

own and franchise stores. It has 1500 showrooms, 25 wholesale depots and 8

distribution centers.

10.1.3 VISION & MISSION

To make NIKE, the dominant company in Indian footwear’s industry.

This we hope to achieve by:

Understanding the needs of customers and offering them superior products

and service
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Leveraging technology to service customers quickly, efficiently and

conveniently

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our

employees

And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5 core

values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of

the values describe what the company stands for, the qualities of our people and the

way we work.

We do believe that we are on the threshold of an exciting new opportunity, where

we can play a significant role in redefining and reshaping the sector. Given the

quality of our parentage and the commitment of our team, there are no limits to our

growth.

Some of the theories I have used in my project are as follows:

Theory: What is market research and why it is important.

Market research is a method of collecting data, which will make you (as a business)

more aware of how the people, you hope to sell to, will react to your products or

services. Market research will answer questions like:

 Whether your products or services are needed?

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 Who might want to buy your products?

 What age, sex, income occupation etc. are the people I want to sell to?

 If there are changes taking place and how this might affect what you sell?

 How well your products or services might sell?

 How much demand there is for what you hope to sell?

 What price would people be prepared to pay?

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CHAPTER 11

RECOMMENDATION &

SUGGESTIONS
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RECOMMENDATION

After assessing the overall market scenarios what came in picture was as follows:

 Consumer reaction suggests that Nike is the marker leader among all its close

counterparts in the sport shoes and apparel segments.

 NIKE is chasing its position most aggressively so now it requires maintaining

its position with new stuff.

 NIKE has been major competitor for NIKE and REEBOK.

 60% Customers are still pro NIKE believer.

 The new stuff of the NIKE is attracting the consumers more which might lead

NIKE at the top spot in the pack in coming financial year.

 Consumers are not showing that kind of craze in ACTION for past few years.

 Probably it could be because of the aggressive attention snatched by brands

like NIKE and NIKE especially in India.

 Celebrities also affect the sale of brand .NIKE shoes promoted by David

Beckham.

 72% respondents take their buying decision after considering the

advertisement of brand.

 Most of respondents prefer to purchase shoes from exclusive showrooms.

 Businessman, serviceman and professionals prefer to wear formal shoes

because of status and students like to wear only sports and casual branded

shoes.
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SUGGESTIONS

 Department stores are the prime sales and marketing channel for branded

shoes. In addition, store decorations and product displays should be designed

to create a strong first impression.

 Seasonal promotion campaigns, like special discounts and advertisements,

could be employed. New lines of collections should be introduced for

festivals.

 The prices of branded shoes must be reduced to increase sales.

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CHAPTER 12

CONCLUSION
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CONCLUSION

I have so far identified the various areas on which NIKE and other major sports

companies need to improve upon to achieve the desired level of competitiveness.

These improvements would give NIKE and the other sports companies’ base to

compete with the MNCs and help the Indian companies to reduce the impact of

MNCs on the Indian Market in the future. Indian manufacturers will have to react

quickly because any delay in reacting to the threat posed by the MNCs would only

give the MNCs time to establish them in the market. With their expertise and

financial capacity they would be nearly impossible to compete with once they get a

firm foothold in the market.

The knowledge, worldwide experience and diversity that an NIKE employee can bring

to the table are valuable. Recently, how successful companies are in the global

world is increasingly derived from intangibles, such as these, that organizations

cannot own. NIKE is greatly affected by these external influences since indeed it is a

global company. For some it is not common knowledge that NIKE is a German

company. This is a result of good global business. NIKE has created a product that is

global and with that diversity and knowledge greatly affect the company. NIKE must

be able to easily adapt to different cultures and must be culturally aware when

conducting business. The long list of NIKE subsidiaries where it conducts business

proves that NIKE is constantly adapting to cultural changes and must be extremely

diverse. Because of this necessity, knowledge is greatly valued. Great changes occur
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in this industry and as a result, new ideas, intuition and inspiration are an asset that

is a necessity in this industry and to remain a global company. Who leads this

knowledge and maintains diversity are the managers, yet they too are facing new

changes.
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BIBLIOGRAPHY
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BIBLIOGRAPHY

WEBSITE- INTRANET:

 www.nike.in

WEBSITE- INTERNET:-

 www.google.com

 www.sail.com

 www.bhushan.com

 www.essar.com

MAGAZINES

 Tisco News

BOOKS

 Marketing management- Philip Kotlar

 Marketing management- Kevin Lana Keller