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8/7/2019 NIKE COSUMER SURVEY_ final
1/34
To understand the reasons for
low market share of NIKE in
India
Presented by:
Abhishek Ranjan
Sagnik Raha
Sobhan KhuntiaSourav Dutta
Debashis Sarangi
Prasanna kr Nayakl
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Background
Nike started its operation in India in 1996 with an exclusive
distribution agreement with Sierra. Nike accounts for just 20% of the 400 crore branded sports
apparel market
Nike lags much behind Reebok and Adidas, its major
competitors.
Recently Nike has revamped its operations in Asia through
localization and customization.
Even though Nike is a world leader in Sports apparel
industry, its hasnt been able to replicate its success in India.
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Marketing Objective
To understand the reasons for low market
share of NIKE in India and Suggest Strategiesto strengthen its position in Indian market.
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Research Objective
To assess the Factors that affect the buyingbehavior of the customer.
To understand the importance of certainattributes given a preference by consumers.
To evaluate brand recall and association.
To do an competitors analysis to understandthe threat of direct competition.
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Key Information Areas:
Product Performance
Brand Image
Demographics Income, age, sex, , profession
Awareness spontaneous/top of mind, share of mind/share of heart
Product specs Quality , style, durability, comfort.
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Data Collection:
Primary Research : via questionnaires from
Students and Professionals of different Agegroups , having different purchasing powers.
Secondary Research
Newspaper ArticlesLiterature Review
Business Standard
Internet
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Sample Statistics:
Sample of 60 respondents
Both in person and onlineThe Demographic details of the respondents
are as follows:-
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Classification of the Respondents
Classification of the Respondents:
Gender
Males(81%)
Females(1
9%)
Age
18- 25years(59%)
>25-30
years(25%)
>30-35
years(6%)
>35 years(5%)
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Classification of the Respondents:
OccupationStudent(42%
)
Salaried
Professional(
25%)
Government
Employee(1
0%)Businessma
n(15%)
Yearly Income< 2
Lacs(12%)
> 2 and 4 and < 6
Lacs(23%)
> 6 and < 8
Lacs(9%)
> 8 Lacs(
35%)
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Preference of Sport Apparel Buyers : Factor Analysis
Factors
Value for Money Affordability, Sales promotion Discounts, Warranty & Aftersales service
Aesthetic Appeal Styling, Brand Image, Store Decor
Performance Quality, Durability, Comfort
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B
rand Nike: Factor Analysis
Factors
Aesthetic Appeal Styling, Brand Image, Store Decor
Performance Quality, Durability, Comfort
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Comparative Analysis Nike V/S Other Brands
Based on respondents perception of the Sports Apparel segment vis--vis NIKE and
other brands on the given parameters.
0
5
10
15
0
5
30
35
40
45
Nike
Other Brands
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Brand Awareness: Top ofMind (Overall)
All datain PERCENTAGE ofrespondents
98%
83%93%
83%
TOMA
nike
adidas
reebok
p a
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Brand Awareness: Spontaneous (Overall)
All datain Percentage ofrespondents
92%
81%87%
90%
Overall TOMA
Nike
reebok
Adidas
Puma
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Perception of NIKE: Overall
1: Percentage of respondents associating a particular parameter +vely with NIKE
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%
Quality of Products
Styling
fforda
le Price
Dura ility
Variety
Comfort
vaila
ility
Performance
Innovation
Value for money
Brand image
Promotion
Discounts
Store
ttractiveness
Series1
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Association of Nike with sports
52%
76%
59%
56%
46%
Association with sports
Cricket
Football
Tennis
Basketball
Athletics
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B
rand Personification
73%
14%11%
2%
Brand Ambassadors
Indian Sportstars
Foreign Sportstars
Bollywood
Celebrities
t ers
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Jaccard Analysis
Parameters
Quality of Products Styling
Afforda ility ura ilityProduct Variety Comfort
Availa ility Performance
Innovation Value For Money
Brand Image Quality of Promotions
Sales Promotion Store Attractiveness
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Jaccard analysis results into Jaccard Similarity Coefficients which are also
referred as Jaccard scores. Jaccard analysis is done to find out the variables
in order of their importance for their ability to govern groupability or
similarity with the dependent variable.
Jacard Score Sheet:
Jaccard Analysis
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Jaccard Analysis
Category Drivers Rank
Quality of Products 1
Durability 2
Comfort 3
Promotion 4
Brand Drivers (NIKE)
Comfort 1
Promotion 2
Quality 3
Variety 4
Category Driver, Jaccard Score .
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To understand the relative strengths and weaknesses of elements/attributes, SWOT
(strengths, weaknesses, opportunities and threat) analysis is done
SWOT scores are calculated as following:
SWOT Score for a Brand on Attribute A = ( Score of attribute A Attributes average ) - (Average
ofBrands scores on all attributes being considered-Grand Average of scores).
SWOT Scores:
SWOT Analysis: NIKE
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SWOT Analysis: NIKE
Affordability
Value for money
Sales promotions
Availability
Innovation
Promotion
Styling
Variety
Storeattractiveness
Quality
Durability
Comfort
Performance
Strengths Weakness
ThreatsOpportunity
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Stochastic Share Analysis
26.09%
27.07%24.02%
22.83%
StochasticShare
A i as
Nike
Reebok
Puma
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Conclusion:
PUMA s stochastic share is surprising since it is anupcoming brand with not much market penetration.
Reebok as a brand is underperforming but on the other
hand it enjoys the maximum market share.
NIKEs stochastic share and market share are quitedissimilar but the company can leverage on its higher
stochastic share as compared to its competitors.
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Qualitative Analysis
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Approach to Qualitative Research
QualitativeResearch
Focus GroupDiscussion
1 FGDconducted
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Focus Group Discussions Objective: To understand how do prospective buyers relate to
the sports apparel segment and to analyze consumer
preferences
Sampling method: Non-probabilistic sampling Judgmentsampling
Sample size: Focus groups of 6 members .
Respondentprofile: Representation was from people of similar
age group and educational qualification with different family
income levels.
Moderator: Sagnik Raha & Abhishek Ranjan
Division of Qualitative Analysis
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FGD
Topic
Thought Process behind
choosing an apparel
Brand and comfort comes
first
Depends on the occasion.
Brand being a deciding
factor.
Brand assures quality and
durability.
Brand doesnt mean
much. It just ensures a
good fit.
Associating sports apparel
with sports and sports
stars
Cricket and football.
Linked brand with
sachin,yuvraj,roger
federer, saina nehwal
Filmstars were also not
behind the race and some
common names came up.
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Topic
Advertisement and
promotions
Ads over TV and Internet
are common medium of
communication
Most important attributes Affordability and Pricing
Brand Preference Nike and Puma was the
majority
Reebok by some.
FGD
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Consumer Dynamics
61%
33%
35%
65%
61%
57%
44%
Brand switchers
Influenced by Ads
Price Sensitive
Willing to pay premium
Always seeking for discounts
Seeking information
Window shopper
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General Perception of NIKE on given parameters was better than that ofother Sport Apparel Brands other than attributes like:-
Affordability
Factors of sales promotion like discounts
Value for money TOMA for NIKE is higher than the TOMA of other brands probably due to
its international appeal and styling.
NIKE is already associated with
Aesthetic appeal.
Brand Image.
Durability .
Comfort .
Sothe million dollar question is where is NIKE losing the plot..
Conclusions
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NIKEin spite of having all the necessary attributes with respect to theProducts on offer, it might be losing out on the following parameters:
Lack of Promotional schemes like Discounts or packages
Lack ofBrand Association/ Loyalty.
Customers inability to connect with the Brand in terms of national appeal.
Pricing its product a bit higher than expectation, thereby leading toerosion of Doctrine of Value for money .
In ability to provide Indian customers with a varied collection of products
to choose from thereby leading to customers moving to other brands.
Lack of penetration as retail is still pursued via Exclusive showrooms
approx 90%, this leads to lesser visibility and thus leading to lack ofcustomer connect.
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The perceived association of Nike has been majorly with Football, Tennis
and Basketball which clearly brings a loophole in the promotion strategy in
India which is majorly through cricket. We suggest that there is a need for
a proper brand ambassador with whom the product can be associated.
The majority of the customer believes in paying a premium for quality
products(65%) and who always looks out for promotional offers(61%).This
is a contradiction which cannot be solved by resorting to either of the two
types of customers. So, the selling should be more localized maintaining
the same global quality standards but providing timely discount offers to
attract customers.
Proposed Strategies
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