project of consumer behaviour

8/12/2019 Project of Consumer Behaviour

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Project report on consumer behavior regarding various brand shoes

Heritage international college Gujranwala Page 1

BRIEF

b r i e f

CONTENTS

c o n t e n t s

1) EXECUTIVE SUMMARY

2) RESEARCH OBJECTIVES

3) RESEARCH METHODOLOGY

4) LIMITATIONS

5) COMPANY PROFILE

6) DATA ANALYSIS & INTERPRETATION

7) SUGGESTION & CONCLUSION

8) BIBLIOGRAPHY


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ACKNOWLEDGEMENT

Success is an effort-bounded activity that involves co-operation of all.

We hereby take the opportunity to express my profound sense of gratitude and reverence to

all those who have helped and encouraged us towards successful completion of the ProjectReport. It has been a great experience working on the concept of CONSUMER BEHAVIOURREGARDING VARIOUS BRANDED SHOES . It gives us complete insight of this concept ofmarketing and its application.

We would like to thank my Project Guide Mr. Imran Bashir for his immense guidance,valuable help and the opportunity provided to us to complete the project under his guidance.

We would like to thank all faculty members of Heritage international collegeGujranwala for guiding and supporting me in the completion of project from time to time.

Last but not the least, our gratitude to great almighty and our parents without whoseconcerned and devoted support the project would not have been the way it is today.

Finally, for any all too fallible errors, omissions and shortcomings in the writing of the reportonly we responsible for whom we hope that all concerning regards of this report will forgiveus.

Muhammad Naveed Ehsan Ali ShahrozShoaib ShahidMuhammad Raza Ali Zaib

PREFACE The project study on CONSUMER BEHAVIOUR REGARDING VARIOUS BRANDED SHOES has been conducted to observe the preferences of consumers. This system of education ishighly appreciated as it provides the students with an opportunity to acquaint them with theoutside world. The practical work helps the students to view the real business world closely,

which in turn widely influences their conception and perception.

In this project, 50 respondents are selecting for knowing their perception regarding brandedshoes. For this purpose, information is collect from some areas of Gujranwala.


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EXECUTIVE SUMMARY

This project looks in various kinds of Merchandising activities, market share of differentshoes and various sales promotion schemes, which are follow in the shoe industry. The threemajor players i.e. Reebok, Nike and Adidas dominate the sports shoe industry in India. India

is one of few battlegrounds in the world where there is neck-to-neck competition between thethree. The companies claim to be in number one sport coating the data produced by twodifferent marketing research companies.

In the 1980s, Adidas sneakers became popular amongst teenagers and young men. TheAdidas sneakers were popularized by the Run DMC song My Adidas and became a hugefashion trend. The Tapie affair the history of the company as presented by its official web siteis incomplete, perhaps because it is indirectly linked to financial scandals. After a period ofserious trouble. The death of Adolf Dasslers son Horst Dassler in 1987, the company was

bought in 1990 by Bernard Tapie, for 1.6 billion French francs ($320million), which Tapie borrowed. Tapie was at the time a famous specialist of rescuing bankrupt companies, a business on which he built his fortune.

Nike is the worlds no.1 manufacturer and marketer of athletic footwear and apparel. Almostunexpectedly, the company established itself as one of the worlds most familiar brandsduring the 1980s and 1990s.

As familiar as a coke bottle or Big Mac, the Nike swoosh logo came to symbolize not justsports culture, but street culture, as the appeal of the star players who endorsed the brand wascarried onto city streets. The approach of the new century set Nike new problems.

Trainers went out of fashion, economic slowdown and labor problems hit Asian performance.But the group has bounced back, retaining its iron grip on the sporting apparel sector and still

undisputed lender in sports-oriented street wear.

Reebok is the worlds third- largest maker of sneakers, athletic shoes and sport apparel.Goods are sold under the brands Reebok, Rockport and Greg Norman Collection. Reebok isalso the official outfitter of the NFL and has an exclusive deal to supply NBA jerseys

beginning the season

Reebok announced in July it would merge with German Sporting apparel company adidas-saloman in a deal valued at 3.8 billion. The merger is expected to be completed by the firsthalf of 2008 and will create the second-largest sporting goods company behind Nike with11billion in revenues.

Adidas will maintain its corporate headquarters in Germany and its North Americanheadquarters in Portland, OR Paul Fireman will remain as chief executive officer of theReebok international ltd. And will continue to lead the Reebok team. Reebok will continue tooperate under its name and will retain its headquarters in Canton, MA. In fiscal 2008, Reebokhad net income of 192.4million and sales of 3.7billion.

There are different individual companies under a common umbrella, each dedicated to aspecific line of product manufacturing, procuring or other particular business activities


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RESEARCH OBJECTIVES

The research study tends to follow and achieve specific objectives. The objectives of this particular study are

To know the personal views of the people regarding various branded shoes. To study which branded shoe is mostly preferred by people as per their choices. Comparison between various branded shoes. Find out factors influencing the people at the time of purchasing shoes such as

Quality, Durability, Variety, Price, and use in sports.

RESEARCH METHODOLOGY


Research methodology is a way to systematically solve the research problem, it not only

takes the research methods but also consider the logic behind the methods. The study ofresearch methodology for developing the project gives us the necessary training in gatheringmaterials and arranging them, participation in the field work when required, and providestraining in techniques for the collection of data appropriate to particular problems.

RESEARCH PROBLEMS

Consumers preference about different branded and non-branded shoes


Exploratory method

SAMPLING PLAN

SAMPLE METHODS Random simple sampling

SAMPLE SIZE 50

PRIMARY DATA Questionnaire and Interview

SAMPLE While deciding about the sample of research, it is required from the researchers point to pay attention to these under mentioned points

Sample Units: A decision has to be taken concerning a sampling unit before selectinga sample, sampling unit may be a geographical one such as state, district, village etc.

so in this research sampling unit is Ludhiana area.Source of Data : Data required for the study was collected through primary sources i.e.market survey.Sampling Size : This refers to the no. of items to be selected from the universe toconstitute a sample. This is a major problem before the researcher. The size of sampleshould neither be excessively large not too small, it should be optimum. This size of

population must be kept in view for this also limits the sample size. Sample size inthis research is 50.


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INSTRUMENTS USED

Primary data collected through sample survey from the selected elements in malls and supermarkets. Therefore, for this purpose I have most popular tool of primary data collectionthrough direct communication with respondents. The tools I used are questionnaire.

METHOD OF DATA COLLECTION

Actually, data is of two kinds, which are following

a) Primary Data: primary data are those, which are afresh and for the first time and thishappen to be original in character.

b) Secondary Data: secondary data are those data which have already been collected bysomeone else and which have already been used as per required.

There are basically two sources to collect secondary data

a) Internally: provided by company/organization

b) Externally: various publication of central, state and local government. Books, magazines, newspapers Internet

After only keeping in mind one can think about what type of data has to be collected duringresearch as our research is concerned we have to gather primary data for customer preference.

RESEARCH INSTRUMENTSQUESTIONNAIRE DESIGN

As the questionnaire is self-administered one, the survey is kept simple and user friendly.Words used in questionnaire are readily understandable to all respondent.

I have made the questionnaire in which questions are according to the research and these areconvenience for the respondent.

LIMITATIONS

LIMITATIONS OF THE STUDY

While surveying we encounter with some problems like

In some of the retail showroom, it is not allowed to get the questionnaire filled.

Many of the respondents were not willing to fill the questionnaire.

Some people were not willing to respond and few of them who responded were inhurry hence the active participation was lacking. Due to which I faced difficulties incollecting informations regarding our questionnaire.

Another problem, which I face, was that people were hesitating to give informationabout their views freely.


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COMPANY PROFILE

INTRODUCTION

Adidas was formed by German sports apparel by the founder Adi Dassler during the 1920s.For over 80 years, Adidas has been part of the world of sports on every level, deliveringstate-of-the-art sports footwear, apparel and accessories. Today, Adidas is a global leader notonly in the shoe industry, but also in the sporting goods industry. Shoes from the Adidas areavailable in virtually every country of the world. . Besides sports footwear, the company also

produces other products such as bags, shirts, watches, eyewear and other sports and clothing-related goods. The company is the largest sportswear manufacturer in Europe and the second

biggest sportswear manufacturer in the world, after its American rival Nike. The companysclothing and shoe design typically involve three parallel stripes of the same color and thesame motive is incorporated into Adidas official logos.

HISTORY

The history of Adidas is one of consistently meeting the evolving needs of the athlete.Focusing more on function and less on fashion, Adidas strives to provide athletes with shoesthat can make a noticeable difference in their performance. Meeting athlete needs is what

makes Adidas the best. The company Adidas was founded in the early 1920s as GebruderDassler Schuhfabrik, in Herzogenaurach in Germany. Adolf Dassler designed a pair of sportshoes in 1925 and few years later, he and his brother Rudolph were selling special shoes fortennis players and began design specific shoes for different sports. The family company splitin 1948. After the split, Adolf (Adi) Dassler founded Adidas and his brother Rudolphfounded Puma. Adi Dassler designed the three-stripe logo in 1941 and he registered it as atrademark for Adidas after the split.

The strength of Adidas was its product innovation. Adi Dassler registered more than sevenhundred patents. Adidas began selling its shoes in the United States after 1968 and in fewyears, the company dominated the American market. The most important marketing

breakthrough was the active promotion of global sporting events, especially the Olympics.The connection of Adidas to the Olympics has a rich heritage. At the 1972 Olympic game inMunich, every official wore Adidas.

Adidas has 107 subsidiaries in 20 countries, and exports to 160 countries. Activities of thecompany and its subsidiaries are directed from Adidas-Salomon AG's headquarters inHerzogenaurach, Germany.

Products : Adidas-footwear, apparel , and hardware such as bags and balls. Salomon-Wintersports incl. skis, snowboards, snowblades, ski boots and bindings, inline skates, hiking,apparel. Mavic-Cycle components, Bonfire-Snowboard apparel, Arc'Teryx -Outdoor apparel,

Adidas


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climbing equipment, Clich - Skateboard equipment, footwear and apparel, Taylor Made-Adidas Golf - Golf equipment, golf apparel, golf shoes and finally, Maxfli - Golf balls, ironsand accessories.

COMPETITORS

Rudolf Dassler, Adies brother, founded a rival company, PUMA the chief competitors ofAdidas are PUMA and NIKE. In August 2005, the company announced that it had made adeal to acquire rival REEBOK for $3.8 billion. The acquition would increase its market sharein North America and allow it to further compete with Nike. This will propel Adidas to thenumber two spot in the foot apparel market behind Nike. Adidas trademark saying isimpossible is nothing.

ENHANCEMENT

In the 1980s, Adidas sneakers became popular amongst teenagers and young men. TheAdidas sneaker was popularized by the RUN DMC song My Adidas and became a huge

fashion trend. After a period of serious trouble following the death of Adolf Dasselers sonHorst Dasseler in 1987, Bernard Tapie for 1.6 billion French Frances ($320million), whichTapie borrowed, bought the company in 1990. Tapie was at the time a famous specialistrescuing bankrupt companies, a business on which he built his fortune.

Tapie decided to move production offshore to Asia. He also hired Madonna for promotion.

In 1992, Tapie was unable to pay interest from his loan. He mandated the Credit Lyonnis bank to sell Adidas, and bank subsequently converted the outstanding debt owed to equity ofthe enterprise, which was unusual for then-current French banking practice. Apparently, theState-owed bank had tried to get Tapie out of dire financial straits as a personal favor toTapie, reportedly because Tapie was a minister of Urban Affairs in the French government atthe time.

February 1993, Credit Lyonnais sold Adidas to Robert Louis Dreyfus, a friend of BernardTapie, for a much higher amount of money than what Tapie owed 4.485 billion francs ratherthan 2.85billion. Forgetting why the bank actually bought Adidas, Tapie later sued the bank,

because he felt spoiled by the indirect sale.Robert Louis-Dreyfus became the new CEO of the company. He is also the president of theOlymique de Marseille football team, to which Tapie is closely linked. Tapie went bankrupthimself in1994. He was the object of several lawsuits, notably related to match fixing at thefootball club. He spent 6 months in La Sant prison in Paris in1997.

POST -TAPIE ERA

In 1997, Adidas AG acquired the Salomon Group, and its corporate name was changedtoAdidas-Salomon AG. In August 2005, Adidas declared its intention to buy Anglo-American rival Reebok for US$3.8 billion. This takeover was completed in august 2005 andmeant that the company will now have closer business sales as those of Nike in NorthernAmerica. The acquisition of Reebok will also allow Adidas to compete with NikeWorldwide. World cup 1954 when West Germany miraculously won the soccer 1954 WorldCup, their footwear was supplied by Adidas. These shoes introduced a technological

breakthrough: studs with screws.When weather were good and pitch was hard, the shoes were


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equipped with short studs; when it rained; longer studs were screwed on the bottom of theshoes. As the final game against the highly-favoured team from Hungary was played in heavyrain, this gave the German players a firmer hold on the slippery pitch.

Celebrities

Celebrities are often involved in advertising campaigns such as television or print adverts toadvertise specific or general products. Adidas use David Bekham as their brand ambassadorand many more celebrities in every region to promote their product. Adidas already hasheavy weight sportsmen such as Sachin Tendulkar, Leander Paes & Mahesh Bhupathiendorsing the brand in India. They had the image, apart from endorsing the performanceelement in the brand. Adidas steps out of crease with a clear sports positioning .

ADIDAS IN PAKISTAN

Adidas entered the Pakistan market in 1996 by setting up a 100% subsidiary of Adidas AGcalled Adidas Pakistan Ltd. and announced its joint venture with Magnum InternationalTrading Company Ltd. on October 1, 1996. The new joint venture Adidas Pakistan Ltd. was incorporated with an initial investment of US $ 205 million with Adidas Pakistan Ltd.holding 80% of the equity and Magnum holding the balance 20%. This investment was raisedto US $ 6.4 million with the equity structure remaining the same. Currently, the totalinvestment stands at US $ 11.4 Million with the equity structure changing to 91.4% byAdidas and 8.6% by magnum.

Adidas Range of Products

A month after announcing the joint venture, Adidas Pakistan Ltd. launched its range of sportsfootwear, apparel and accessories in Karachi on November 1, 1996. Subsequently, Adidas

products were also launched in Lahore, Faisalabad, Islamabad, Peshawar, GujranwalaCurrently, Adidas products are available in 15 cities in Pakistan.

The range of Adidas products available in Pakistan include sports footwear featuring some ofthe most popular innovations and technologies developed by Adidas such as Feet You Wear,Torsion system and adi wear. The sports footwear available in Pakistan includes a wide rangeof core categories such as adventure, basketball cricket, golf, indoor, running, tennis, training,soccer and workout.

Adidas has introduced in Pakistan, a wide range of sportswear for both men and women.These include apparel for athletics, basketball, cricket, golf, running, soccer, swimming,tennis and training for Men and women.

BRAND VALUE AND STRATEGY OF ADIDAS

Brand value and strategy of Adidas Ag, a leading producer of sports apparel. In 2006, Adidas

owned another big brand Reebok for more than 3.5 million dollars.The brand value of Adidas Ag, the leading leisure wear, sports footwear and equipment

producer across the globe is currently almost 2748 million dollars. The company's brandname is Adidas and it is displayed with a trefoil logo. This logo, a very popular one, is asignature of Adidas' brand. It had been launched in 1972. The new Adidas logo, three stripesrunning across its several pr oducts, was introduced in 1991 . In 2006, Adidas acquired theReebok brand for 3.8 million dollars.

In 2007, Adidas repositioned its Reebok brand to attract the consumers of athletics apparel.Moreover, the company adopted several plans to expand its brand name .Adidas has given lot


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of emphasis on advertising. The strong brand management has successfully branded thecompany over the world.

Adidas has introduced several market campaigning ideas, for example the "Run Easy"campaign for the Reebok brand. After acquisition, the main challenge was to avoid thecompetition between the past two rival brands, Reebok, the producer of athletics' sneaker, and

Adidas. However, Reebok's brand managers have not only successfully done that but alsothey increased the brand value of both Reebok and Adidas.

INTODUCTION

Reebok is the worlds third-largest maker of sneakers, athletic shoes and sports apparels.Good are sold under the brands Reebok, Rockport, and Greg Norman Collection. Reebok is

also the official Outfitter of the NFL and has an exclusive deal to supply NBA jerseys beginning this season.

Reebok announced in July it will merge with German sporting apparel company adidas-saloman in a deal valued at $3.8 billion. The merger is expected to be completed by the firsthalf of 2006 and will create the second-largest sporting goods company behind Nikewith$11billion in revenue.

Adidas will maintain its corporate headquarters in Germany and its North Americanheadquarters in Portland, OR. Paul Fireman will remain as Chief Executive officer of Reebokinternational Ltd. In addition, will continue to operate under its name and will retain itsheadquarters in canton, MA. In fiscal 2004, Reebok had net income of $192.4 million andsales of $3.7 billion.

HISTORY

Reeboks origins go back to 1895 when Joseph William Foster made running shoes withspikes in them. He formed a company called J.W.Foster and sons which made shoes forathletes in the 1924 summer Olympics. In 1958, two of the founders grandsons started acompanion company that came to be known as Reebok, named for an African gazelle.

In 1979, Paul Fireman, a partner in an outdoor sporting goods distributorship, spotted Reebokshoes at an international trade show. He negotiated for the North American distributionlicense and introduced three running shoes in the U.S that year. At $60, they were the mostexpensive running shoes on the market.

By 1981, Reeboks sales exceed 1.5 million, but a dramatic was planned for the next year. In1982, Reebok introduced the first athletic shoe designed especially for the women; a shoe fora new fitness exercise called aerobic dance. The shoe was called the freestyle, and with itReebok anticipated and encouraged three major trends that transformed the athletic footwearindustry: the aerobic exercise movement, the influx of women into sports and exercise andthe acceptance of well-designed athletic footwear by adults for street and casual wear.

REEBOK


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Reebok went public in 1985. The Chairman and CEO of Reebok was Paul Fireman. He wasthe one to introduce the Freestyle in 1980 he was the founder and innovator of Reebok. Heleft his position in 2006 and sold Reebok to Adidas for $3.8 billion. Paul Harrington took his

place in April for two years. In March 2008, Uli Becker became CEO of Reebok. He is nowresponsible for Reebok brands business around the world, and he reports to the chairpersonand CEO of the Adidas group. The top 3 CEO connections are Mr. John Warren who is thechief financial officer and general manager of sports licensed division, Mr. Terry R. Pillowsenior vice president, and Mr. Rick Paterno senior Vice President. The top five shareholdersare Bardwil Industries Inc, Dr. Martens Airwair USA, llc, Native Intimates Ltd., WelspunUSA, Ins., Alpha Mills Corporation. Its headquarters are in Canton, Massachusetts, U.S.A. itsregional offices are in Amsterdam, Montreal, Hong Kong, and Mexico City.

REEBOK'S VISION

Reebok is dedicated to providing each athlete - from professional athletes to recreationalrunners to kids on the playground - with the opportunity, the products, and the inspiration toachieve what they are capable. We all have the potential to do great things. As a brand,

Reebok has the unique opportunity to help consumers, athletes and artists, partners andemployees fulfill their true potential and reach heights they may have thought un-reachable.

REEBOKS MISSION

At Reebok, we see the world a little differently and throughout our history have made ourmark when we have had the courage to challenge convention. Reebok creates products andmarketing programs that reflect the brands unlimited creative potential.

REEBOK'S POSITIONING

Celebrate Individuality in Sport and LifeReebok understands that people are, above all, unique. Reeboks positioning reflects this;celebrating the distinct qualities that make people who they are - their unique points of view,their individual style and their remarkable talents and accomplishments. Reebok celebratestheir individuality, their authenticity and the courage it takes to forge their own path togreatness. While some may call them crazy or eccentric, Reebok calls them visionary andoriginal.

REEBOK'S PURPOSE

To Empower Global Youth to Fulfill their Potential: Commitment to Corporate

Responsibility is an important legacy and hallmark of the Reebok brand. For two decades,Human Rights, through the Reebok Human Rights program, were the primary focus of thiseffort. Reebok has expanded on what had been built and created a Global CorporateCitizenship platform with a purpose for the brand that will help underprivileged, underservedyouth around the world fulfill their potential and live healthy, active lives.

REEBOK'S BRAND TERRITORY

Having Fun Staying in Shape : Having Fun Staying in Shape comes to life through a fun, bold, provocative manner expressed through fresh, eye catching imagery signed off with a


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unique 'Reeword.' The tone and manner allows the consumer to look at sport and lifestylethrough our lens of 'Ree.'

Reebok Shoes Industry - Fastest Growing Industries in Pakistan

Reebok Shoes Company offers a wide range of shoes, apparels and accessories and the pricesof these stuffs depend upon the design, comfort and material used. Reebok shoes, apparelsand other accessories in India are expensive when we compare it with other brands but stillare popular and the choice of the elite class of the society. Now a day the shoe price

starts from Rs.1000 and goes up to Rs.15000 depending upon the kind of shoes one is lookingfor. The brand has achieved great recognition amongst youngsters, middle aged and old

people because of its comfort, fitting characteristics and style.To distinguish themselves from the other brands, Reebok also offers a wide range of apparelsfor both men and women keeping into consideration the latest fashion, style and brand image.The company is manufacturing jackets, t-shirts, sweatshirts, pull overs, tracksuits, windcheater etc. in different designs and colours. Prices of these apparels depend upon the qualityand style of the product being taken. During season sale, the company also offers discountson these products.

Recent Activities of Reebok

In 2009, Reebok launched JUKARI Fit to Fly, an innovative gym workout designedfor all women with one single objective to make fitness for women fun again.JUKARI, the result of a long-term relationship between Reebok and the globallyrenowned entertainment company.

In 2009, Reebok launched the EasyTone footwear collection that allows consumers to"take the gym with them." The EasyTone technology involves two balance podsunder the heel and forefoot of the shoe that create a natural instability with every step,which Reebok claims forces the muscles to adapt and develop tone.

In April 2008 Reebok launched its online store in UK and France. In January 2009

Reebok had extended the store to Germany, Austria, Netherlands, Belgium andIreland and had also introduced Your Reebok an application to design your ownReeboks.

For the 200809 season, Reebok created the Reebok Edge 2 uniform system,for National Hockey League's players. The league adopted the jersey and now allteams sport the new style for both their home and away jerseys.

In July 2007, Reebok launched its Lifestyle Footwear Collection in associationwith Daddy Yankee's new album. In December 2007.
http://en.wikipedia.org/wiki/Daddy_Yankeehttp://en.wikipedia.org/wiki/Daddy_Yankee


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In June 2007, Reebok announce d Scarlett Johansson on its array of brandambassadors. Johansson promotes the Scarlett 'Hearts' Rbk" collection, fashion-forward, athletic-inspired' footwear targeted at the Pakistan market.

INTODUCTION Nike is a major publicly traded sportswear and equipment supplier based in the United States.

The company is headquartered near Beaverton, Oregon, which is part of the Portlandmetropolitan area. It is the world's leading s u pplier o f athletic and apparel and a majormanufacturer of sports equipment with revenue in excess of US$18.6 bil lion in its fis cal year2008 (ending May 31, 2008). As of 2008, it employed mor e tha n 30,000 people worldwide.

Nike and Precision Castparts are the only Fortune 500companies headquartered in the state ofOrego n, according to The Oregonian.

The company wa s founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. on May 30, 1978. The companytakes its name from Nike the Greek goddess of victory. Nike markets its produc ts under itsown brand as well as Nike Golf, Nike Pro, Air Jordan, Nike Skateboarding and subsidiariesincluding Cole, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey

(later renamed Nike Bauer) between 1995 and 2008.[4] In addition to manufacturingsportswear a nd equipment, the c ompany opera tes retail stores under the Niketown name. Nike sponso rs many high profile athletes and sports team s a round the world, with the highlyrecognized trademarks of "Just do it" and the Swoosh logo.

HISTORY

Nike, originally known as "Blue Ribbon Sports", was founded by University of Oregon trackathlete Philip Knight and his coach Bill Bowerman in January 1964. The company initiallyoperated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making mostsales at track meets out of Knight's automobile.

The company's profits grew quickly, and in 1967 , BRS opened it s first retail store, located on

Pico Boulevard in Santa Monica, California. By 1971, the relationship between BRS andOnitsuka Tiger was nearing an end. BRS prepared to launch its own line of footwear, whichwould bear the newly designed Swoosh 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 onJanuary 22, 1974.

The first shoe sold to the public to carry this desig n was a soccer shoe named Nike , whi chwas released in the summer of 1971. In February 1972, BRS introduced its first line of Nikeshoes, with the name Nike derived from the Greek goddess of victory. In 1978, BRS, Inc.officially renamed itself to Nike, Inc. . Beginning with Ilie Nstase, the first professional

NIKE
http://en.wikipedia.org/wiki/Scarlett_Johanssonhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Beaverton,_Oregonhttp://en.wikipedia.org/wiki/Oregonhttp://en.wikipedia.org/wiki/Clothinghttp://en.wikipedia.org/wiki/Portland_metropolitan_areahttp://en.wikipedia.org/wiki/Portland_metropolitan_areahttp://en.wikipedia.org/wiki/Sports_equipmenthttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Precision_Castparts_Corp.http://en.wikipedia.org/wiki/The_Oregonianhttp://en.wikipedia.org/wiki/Bill_Bowermanhttp://en.wikipedia.org/wiki/Hurley_Internationalhttp://en.wikipedia.org/wiki/Umbrohttp://en.wikipedia.org/wiki/Converse_(shoe_companyhttp://en.wikipedia.org/wiki/Nike_Bauerhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/University_of_Oregonhttp://en.wikipedia.org/wiki/ASICShttp://en.wikipedia.org/wiki/U.S._Patent_and_Trademark_Officehttp://en.wikipedia.org/wiki/U.S._Patent_and_Trademark_Officehttp://en.wikipedia.org/wiki/U.S._Patent_and_Trademark_Officehttp://en.wikipedia.org/wiki/U.S._Patent_and_Trademark_Officehttp://en.wikipedia.org/wiki/Carolyn_Davidsonhttp://en.wikipedia.org/wiki/Swooshhttp://en.wikipedia.org/wiki/Santa_Monica,_Californiahttp://en.wikipedia.org/wiki/ASICShttp://en.wikipedia.org/wiki/University_of_Oregonhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Nike_Bauerhttp://en.wikipedia.org/wiki/Converse_(shoe_companyhttp://en.wikipedia.org/wiki/Umbrohttp://en.wikipedia.org/wiki/Hurley_Internationalhttp://en.wikipedia.org/wiki/Nike_Skateboardinghttp://en.wikipedia.org/wiki/Air_Jordanhttp://en.wikipedia.org/wiki/Nike_(mythologyhttp://en.wikipedia.org/wiki/Philip_Knighthttp://en.wikipedia.org/wiki/Bill_Bowermanhttp://en.wikipedia.org/wiki/Bill_Bowermanhttp://en.wikipedia.org/wiki/Bill_Bowermanhttp://en.wikipedia.org/wiki/The_Oregonianhttp://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Precision_Castparts_Corp.http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Sports_equipmenthttp://en.wikipedia.org/wiki/Clothinghttp://en.wikipedia.org/wiki/Portland_metropolitan_areahttp://en.wikipedia.org/wiki/Portland_metropolitan_areahttp://en.wikipedia.org/wiki/Oregonhttp://en.wikipedia.org/wiki/Beaverton,_Oregonhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Scarlett_Johansson


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athlete to sign with BRS/Nike, the sponsorship of athletes became a key marketing tool forthe rapidly growing company.

The company's first self-designed product was based on Bowerman's "waffle" design. Afterthe University of Oregon resurfaced the track at Hayward Field, Bower man beganexperimenting with different potential outsoles that would grip the new urethane track more

effectively. His efforts were rewarded one Sunday morning when he poured liquid urethaneinto his wife's waffle iron. Bowerman developed and refined the so-called 'waffle' sole whichwould evolve into the now-iconic Waffle Trainer in 1974.

By 1980, Nike had reached a 50% market share in the U.S. athletic shoe market, and thecompany went public in December of that year. Its growth was due largely to 'word-of-foot'advertising (to quote a Nike print ad from the late 1970s), rather than television ads. Nike'sfirst national television commercials ran in October 1982 during the broadcast of the NewYork Marathon. The ads were created by Portland-based advertising agency WiedenKennedy, which had formed several months earlier in April 1982.

Together, Nike and Wieden Kennedy have created many print and television advertisementsand the agency continues to be Nike's primary today. It was agency co-founder Dan Wiedenwho coined the now-famous slogan "Just Do It" for a 1988 Nike ad campaign, which waschosen by Advertising Age as one of the top five ad slogans of the 20 th century, and thecampaign has been enshrined in the Smithsonian Institution. San Franciscan Walt Stack wasfeatured in Nike's first "Just Do It" advertisement that de buted on July 1, 1988. Wiedencredits the inspiration for the slogan to "Lets do it", the last words spoken by GaryGilmore before he was executed. Throughout the 1980s, Nike expanded its product line toinclude many other sports and regions throughout the world.

PRODUCT

Nike produces a wide range of sports equipment. Their first products were track runningshoes. They currently also make shoes, jerseys, shorts, base layers etc. for a wide range ofsports including track and field, baseball, ice, hockey, tennis, associationfootball (soccer), lacrosse, basketball and cricket. Nike Air Max is a line of shoes firstreleased by Nike, Inc. in 1987. The most rec ent additio ns to their line are the Ni ke 6.0, Nike

NYX, and Nike SB shoes, designed for skateb oarding. Nike has recently introduced cricketshoes, called Air Zoom Yorker, designed to be 30% lighter than their competitors'. In 2008,

Nike introduced the Air Jordan XX3, a high-performance basketball shoe designed with theenvironment in mind.

Nike sells an assortment of products, including shoes and apparel for sports activitieslike association football, basketball, running, combat sports, tennis, Americanfootball, athletics, golf and cross training for men, women, and children. Nike also sells shoesfor outdoor activities such as tennis, golf, skateboarding, associationfootball, baseball, American football, cycling, volleyball, wrestling, cheerleading, aquaticactivities, au to racing and other athl etic and recreational uses. Nike is well known and

popular in youth culture, chav culture and hip hop cultu reas they s u pply urbanfashion clothi ng. Nike recently tea med up with Apple Inc. to pro duce the prod uct, which
http://en.wikipedia.org/wiki/Youth_culturehttp://en.wikipedia.org/wiki/Chavhttp://en.wikipedia.org/wiki/Smithsonian_Institutionhttp://en.wikipedia.org/wiki/Track_and_fieldhttp://en.wikipedia.org/wiki/Baseballhttp://en.wikipedia.org/wiki/Ice_hockeyhttp://en.wikipedia.org/wiki/Tennishttp://en.wikipedia.org/wiki/Crickethttp://en.wikipedia.org/wiki/Nike_Air_Maxhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/Athletics_(sporthttp://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Cross_traininghttp://en.wikipedia.org/wiki/Skateboardinghttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Baseballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/Cyclinghttp://en.wikipedia.org/wiki/Volleyballhttp://en.wikipedia.org/wiki/Wrestlinghttp://en.wikipedia.org/wiki/Cheerleadinghttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Urban_fashionhttp://en.wikipedia.org/wiki/Urban_fashionhttp://en.wikipedia.org/wiki/Hip_hop_culturehttp://en.wikipedia.org/wiki/Chavhttp://en.wikipedia.org/wiki/Youth_culturehttp://en.wikipedia.org/wiki/Cheerleadinghttp://en.wikipedia.org/wiki/Wrestlinghttp://en.wikipedia.org/wiki/Volleyballhttp://en.wikipedia.org/wiki/Cyclinghttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/Baseballhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Skateboardinghttp://en.wikipedia.org/wiki/Cross_traininghttp://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Athletics_(sporthttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/Tennishttp://en.wikipedia.org/wiki/Combat_sportshttp://en.wikipedia.org/wiki/Runninghttp://en.wikipedia.org/wiki/Basketballhttp://en.wikipedia.org/wiki/Football_(soccerhttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Nike_Air_Maxhttp://en.wikipedia.org/wiki/Crickethttp://en.wikipedia.org/wiki/Tennishttp://en.wikipedia.org/wiki/Ice_hockeyhttp://en.wikipedia.org/wiki/Baseballhttp://en.wikipedia.org/wiki/Track_and_fieldhttp://en.wikipedia.org/wiki/Smithsonian_Institution


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monitors a runner's performance via a radio device in the shoe which links to the i Pod nano.While the product generates useful statistics, it has been criticized by researchers who wereable to identify use rs' RFI D devices from 60 feet (18 m) away using small, concealableintellige nce m otes i n a wireless sensor networ k.

MANUFACTURING

Nike has contracted with more than 700 shops around the world and has offices located in 45countries outside the United States Most of the factories are located in Asia, includingIndonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, andMalaysia Nike is hesitant to disclose information about the contract companies it works with.However, due to harsh criticism from some organizations like Corp Watch, Nike hasdisclosed information about its contract factories in its Corporate Go vernance Repo rt.

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.

AGE (IN YEARS) FREQUENCT OFRESPONDENT

PERCENTAGE OFRESPONDENTS

15-25 23 4626-35 27 54

42%

44%

46%

48%

50%

52%

54%

15-25 26-35

46%

54%

% O F R E S P O N D E N T

AGE

AGE OF RESPONDENT

26-35

15-25
http://en.wikipedia.org/wiki/IPod_nanohttp://en.wikipedia.org/wiki/RFIDhttp://en.wikipedia.org/wiki/Crossbow_Technologyhttp://en.wikipedia.org/wiki/Wireless_sensor_networkhttp://en.wikipedia.org/wiki/CorpWatchhttp://en.wikipedia.org/wiki/CorpWatchhttp://en.wikipedia.org/wiki/Wireless_sensor_networkhttp://en.wikipedia.org/wiki/Crossbow_Technologyhttp://en.wikipedia.org/wiki/RFIDhttp://en.wikipedia.org/wiki/IPod_nano


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INTERPRETATION

Analysis indicate that out of 50 respondents 23 persons belongs to age group between 15-25and another 27 persons belong to age group of 26-35 years old. Teenagers like to wear sportsshoes and younger people prefer to wear formal shoes .

EDUCATION LEVEL OF RESPONDENTS

Education greatly influenced the choice, preference and habit of a person. Many living habitslearn from education. Education makes him aware about the running fashion.

EDUCATION LEVEL FREQUENCT OFRESPONDENT


U. GRADUATE 19 38GRADUATE 16 32

POST GRADUATE 5 10ANY OTHER 10 20

INTERPRETATION

Studies revealed that 38% respondents are under graduate and they prefer to wear sportshoes. There are 32% persons are graduate and they wear shoes according to latest fashionand 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 afundamental unit in the organization of society.

TYPE OF FAMILY FREQUENCY OFRESPONDENTS

PERCENTAGE OFRESPONDENT

NUCLEAR 27 54JOINT 23 46

INTERPRETATION

Family plays an important role in decision-making. Data consists of 54% nuclear familieswhere family members take their own decisions and have enough money to spend. There are46% respondents come from joint families and they take buying decision according to budgetof the family .

MARITAL STATUS

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

MARITAL STATUS FREQUENCY OFRESPONDENTS


MARRIED 19 38UNMARRIED 31 62

.

42%

44%

46%

48%

50%

52%

54%

NUCLEAR JOINT

54%

46% % O F R E S P O N D E N T

TYPE OF FAMILY

TYPE OF FAMILY

NUCLEAR

joint


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INTERPRETATION

Data consists of 38% married respondents who buy branded shoes after considering price andother attributes of the product. And another 62% respondent takes their own decision andthey spend money according to their will.

INCOME LEVEL

For household and individual income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earning received in a given period of time?

INCOME (IN 000) FREQUENCY OFRESPONDENTS


5-10 10 20

10-15 12 2415-20 13 26

20&ABOVE 15 30

38%

62%

0%

10%

20%

30%

40%

50%

60%

70%

MARRIED UNMARRIED

% O

F R E S P O N D E N T

MARITAL STATUS

MARITAL STATUS

UNMARRIED

MARRIED


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INTERPRETATION

Data indicate that 20% belong to income category of Rs 5-10and 24% fall between Rs10-15. There is 26% fall between income categories of 15-20. And another 30% comeunder income group of 20&above. Low income group prefer to wear unbranded shoes

TYPE OF SHOES LIKE TO WEAR

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

TYPE OF SHOES FREQUENCY OFRESPONDENT

PERCENTAGE OFRESPONDETS

FORMAL 20 40

SPORTS 14 28

CASUAL 12 24

ANY OTHER 4 8

0%

5%

10%

15%

20%

25%

30%

5000-10000 10000-15000 15000-20000 20&ABOVE

20%24% 26%

30%

% O

F R E S P O N D E N T

INCOME LEVEL

FAMILY INCOME

%OF RESPONDENT

40%

28%

24%

8% FORMAL

SPORTS

CASUAL

ANYOTHER


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INTERPRETATION

It is analyzed that 40% peoples prefer to wear formal shoes and businesspersons and professionals mostly refer these shoes. Young hunks, sportsmen and college going studentsfirst prefer sports shoes. Casual shoes are worn on special occasions.

PRESENT CONSUMERS OF BRANDED SHOES

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

RESPONSES FREQUENCY OFRESPONDENTS


YES 34 68 NO 10 20

INDIFFERENT 6 12

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.

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.

BRANDS FREQUENCY OFRESPONDENTS


NIKE 30 60SERVICE 24 48ADIDAS 38 76

68%

20%12%0%

10%

20%

30%

40%

50%

60%

70%

80%

yes no indifferent

% o f r e s p o n d e n t s

Responses

present consumers of branded shoes


20/28



REEBOK 31 62ANY OTHER 12 24

(NOTE: % vary because respondents are free to tick more than one option)

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 are48% of the consumers are aware about service shoes.

BRAND LIKE THE MOST

A customer like only that brand which provide him or her more satisfaction as compared toother brands available in the market.

60%

48%

76%

62%

24% NIKE

SERVICE

ADIDAS

REEBOK

ANY OTHER

22%10%

38%26%

4%

NIKE SERVICE ADIDAS REEBOK ANYOTHER

0%10%20%30%40%

Name of brand % o f r e s p o n d e n t

Brand like the most

NIKE

SERVICE

ADIDAS

REEBOK

ANY OTHER

BRANDS FREQUENCY OFRESPONDENT


NIKE 11 22SERVICE 5 10ADIDAS 19 38REEBOK 13 26

ANY OTHER 2 4


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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% customerswearing Reebok shoes, 22% wearing Nike shoes and 10% wearing service shoes. There is 4%respondent wearing other shoes.

PURCHASING PLACE

Place play an important role in the marketing of products.

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 todepartmental stores.

18%

34%40%

8%0%5%

10%15%20%25%30%35%

40%45%

D. STORE O.SHOWROOM EX. SHOWROOM ANY OTHER

% o

f r e s p o n d e n t

place

purchasing place

PLACE FREQUENCY OF RESPONDENT PERCENTAGE OFRESPONDENTS

DEPARTMENTALSTORE

9 18

ORDINARYSHOWROOM

17 34

EXCLUSIVESHOWROOM

20 40

ANY OTHER 4 8


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ADVERTISING MEDIA

Advertising is the art of influencing human action to buy or possess ones product. The termmedia refers to the mean through which the advertising information is communicated by theadvertiser to the prospective customers .

TYPE OF MEDIA FREQUENCY OFRESPONDENT


ADVERTISEMENT 13 26FRIENDS 9 18

SALES PERSONS 19 38EXCLUSIVE SHOWROOM 9 18

ANY OTHER NIL NIL

INTERPRETATION

Analysis revealed that 38% of the total respondents become aware about particular brandsthrough salespersons, 26% through advertisement, 18% through friends, and another 18%through exclusive showroom .

AFFECT OF ADVERTISEMENT ON BUYING DECISION

Advertising provides maximum information about the availability of products to consumers,so they can select appropriate products.

RESPONSES FREQUENCY OFRESPONDENT


YES 36 72 NO 14 28

ADVERTISEMENT

26%

FRIENDS18%

SALESPERSON38%

E.SHOWROOM18%

Advertising media


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INTERPRETATION

To measure the effective of advertisement it is necessary to know the effect of advertisementon the consumer, as study indicates 72% are those whose purchasing decision is affected byadvertisement and 28%respondents decision is not affected by advertisement .

EFFECT OF PRICE

Price may be defined as money consideration asked for or offered or exchanged for aspecified unit of a good or service. Prices are generally determined by market conditions.

0%

10%

20%

30%

40%

50%

60%

70%

80%

YES NO

72%

28% % o f r e s p o n d e n t s

Responses

Affect of advertisement

0%

50%

100%

YESNO

78%

22%


Responses

Effect of price

yes

no



YES 39 78 NO 11 22


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INTERPRETATION

Analysis shows that 78% respondents change their purchasing decision if there is anyincrease in price and 22%respondents do not change their decision even if there is anyincrease in price because of brand image.

REPURCHASE PERIOD

Purchasing decision of consumer depends upon the income level of the consumer.

REPURCHASE PERIOD FREQUENCY OFRESPONDENT


ONCE A YR 18 36TWICE A YR 14 28THRICE A YR 2 4

SEASONAL 12 24

SPECIAL OCCASION 4 8

INTERPRETATION

Most of the consumer purchase once in a year and their percentage is 36% and 28% purchase

twice a year, 4% thrice a year, 24% purchase seasonally and 8% purchase on specialoccasions.

FACTORS AFFECTING THE PURCHASING DECISION

Price and quality of the product are the main factors, which affect the final decision of theconsumer .

36%28%

4%

24%

8%0%5%

10%15%20%25%30%35%40%


Period

purchasing behaviour


25/28



FACTORS LARGEEXTENT(3)

SOMEEXTENT(2)

LEASTEXTENT(1)

WEIGHTED AVERAGE

PRICE 28 13 9 2.38QUALITY 45 5 - 2.9

SIZE 50 - - 3DESIGN 26 17 7 2.38COLOR 19 18 13 2.1

DURABILITY 35 10 5 2.6AVAILABILITY 38 8 4 2.68BRANDIMAGE 29 19 2 2.54

INTERPRETATION

Studies reveals that price, quality, size, design, durability, availability and brand image fall between large extent and some extent, other attributes like colors of the shoes lies betweenthe some extent and least extent.

CUSTOMER SATISFACTION LEVEL FROM DIFFERENT ATTRIBUTES OF A PRODUCTCustomer is king of the market so he wants maximum satisfaction from the product that he

buys . FACTORS HIGHLY

SATISFIED

(5)

SATISFIED

(4)

NEUTR AL(3)

DISSATISFIED(2)

HIGHLYDISSATISFI

ED

WEIGHT-ED

AVERAGE

PRICE 7 23 17 2 1 3.64BRANDIMAGE

23 15 7 5 _ 4.12

QUALITY 18 21 11 - - 4.14SIZE 17 19 13 1 - 4.04

2.38

2.9 3

2.382.1

2.6

0

0.5

1

1.5

2

2.5

3

3.5

w e i g h t e d a v e r a g e

Factors

Factors considering while purchasing

WEIGHTED AVERAGE


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COMFORT 25 17 8 - - 4.34DURABILI

TY15 27 8 - 1 4.14

INTERPRETATION

A Study show that consumers are not highly satisfied with the prices of branded shoes butthey are satisfied with other attributes to large extent.

BRAND LOYALTY

Brand loyalty refers to that a customer being permanent consumer of brand and he neverswitch over to other brand.

3.64

4.12 4.144.04

4.34

4.144.12 4.144.04

4.34

4.14

3.2

3.4

3.6

3.8

4

4.2

4.4

w e i g h t e d a v e r a g e

Factors

Satisfaction level of customer

WEIGHTED AVG.

42%

58%

BRAND LOYALTY

YES

NO



YES 21 42 NO 29 58


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INTERPRETATION

Study indicates that only 42% is the loyal customers and 58% will change their brand if allthe qualities are available with the new products .

SUGGESTIONS AND CONCLUSION

FINDINGS, SUGGESTIONS AND CONCLUSION

RESEARCH FINDING

After assessing the overall market scenarios what came in picture was as follows: Consumer reaction suggests that Adidas 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.

ADIDAS has been major competitor for NIKE and REEBOK. 60 % Customers are still pro NIKE believer. The new stuff of the ADIDAS is attracting the consumers, more that might lead

ADIDAS 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 ADIDAS especially in India. Celebrities also affect the sale of brand .ADIDAS 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. Businessperson, service member and professionals prefer to wear formal shoes because of status and students like to wear only sports and casual branded shoes.

SUGGESTIONS

Department stores are the prime sales and marketing channel for branded shoes. Inaddition, store decorations and product displays should be designed to create a strongfirst impression.

Seasonal promotion campaigns, like special discounts and advertisements, could beemployed. New lines of collections should be introduced for festivals.

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


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CONCLUSION

The bottom line of the market research speaks that branded shoes in Pakistan has beenincreasing on day-by-day basis. That sound batter for international as well as domesticmarket.

BIBLIOGRAPHY

The list of reference for completing this Project is:BOOKS:Marketing management By: Philip KotlerMarketing management By: J.C GandhiFunctional management By: R.K.SharmaINTERNET:www.google.comwww.wlkipedia.com

www.paradise.comNEWSPAPER:Economic times

project of consumer behaviour

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