Nike Details.doc

7/27/2019 Nike Details.doc

1/23

Pricing:- Nikes pricing is designed to be competitive to the other fashion shoe

retailers. The pricing is based on the basis of premium segment as target

customers. Nike as a brand commands high premium.

Place:- Nike shoes are distributed to Multi Brand store front and the exclusive Nike

stores across countries. While this necessitates a second trip for the customer to

come and pick up the shoes, it allows Nike to offer a much wider selection than

any of the competition.

Promotion:- Location, targeted advertising in the newspaper and strategic alliances

serves as the foundation of Nike advertising and promotion effort. The athletes and

other famous sports personalities are always taken as brand ambassadors. They

form the prime building blocks of their portion strategy.

Product:- The product range of Nike comprise of shoes, sports wear, watches etc.

Its product history began with long distance running shoes in 1963.A wide range of

shoes, apparel and equipment. For example:

Nike Oregon Digital Super Watch

Nike Presto Cee Digital Medium Watch

Nike Presto Cee Digital Small Watch

Nike Ron Analog Watch

Nike Triax 10 Regular Watch

Swot Analysis

Swot Analysis Nike, Inc.

Strengths:-

Nike is a very competitive organization. Phil Knight (Founder and CEO) is often

quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike of

is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring

the games. Nike did not. However Nike sponsored the top athletes and gained

valuable coverage.

1


2/23

Nike has no factories. It does not tie up cash in buildings and manufacturing

workers. This makes a very lean organization. Nike is strong at research and

development, as is evidenced by its evolving and innovative product range. They

then manufacture wherever they can produce high quality product at the lowest

possible price. If prices rise and products can be made more cheaply elsewhere (to

the same or better specification) Nike will move production. Nike is a global

brand. It is the number one sports brand in the World. Its famous 'Swoosh' is

instantly recognizable, and Phil Knight even has it tattooed on his ankle.

Weaknesses:-

The organization does have a diversified range of sports products. However, the

income of the business is still heavily dependent upon its share of the footwear

market. This may leave it vulnerable if for any reason its market share erodes.

The retail sector is very price sensitive. Nike does have its own retailer in Nike

Town. However, most of its income is derived from selling into retailers. Retailers

tend to offer a very similar experience to the consumer. Can you tell one sports

retailer from another? So margins tend to get squeezed as retailers try to pass some

of the low price competition pressure onto Nike.

Opportunities:-

Product development offers Nike many opportunities. The brand is fiercely

defended by its owners whom truly believe that Nike is not a fashion brand.

However, like it or not, consumers that wear Nike product do not always buy it to

participate in sport. Some would argue that in youth culture especially, Nike is a

fashion brand. This creates its own opportunities, since product could become

unfashionable before it wears out i.e. consumers need to replace shoes. There is

also the opportunity to develop products such as sport wear, sunglasses and

jewellery. Such high value items do tend to have associated with them, high

profits.

2


3/23

The business could also be developed internationally, building upon its strong

global brand recognition. There are many markets that have the disposable income

to spend on high value sports goods. For example, emerging markets such as China

and India have a new richer generation of consumers. There are also global

marketing events that can be utilized to support the brand such as the World Cup

(soccer) and The Olympics.

Threats:-

Nike is exposed to the international nature of trade. It buys and sells in different

currencies and so costs and margins are not stable over long periods of time. Such

an exposure could mean that Nike may be manufacturing and/or selling at a loss.

This is an issue that faces all global brands.

The market for sports shoes and garments is very competitive. The model

developed by Phil Knight in his Stamford Business School days (high value

branded product manufactured at a low cost) is now commonly used and to an

extent is no longer a basis for sustainable competitive advantage. Competitors are

developing alternative brands to take away Nike's market share.

As discussed above in weaknesses, the retail sector is becoming price competitive.

This ultimately means that consumers are shopping around for a better deal. So if

one store charges a price for a pair of sports shoes, the consumer could go to the

store along the street to compare prices for the exactly the same item, and buy the

cheaper of the two. Such consumer price sensitivity is a potential external threat to

Nike.

3


4/23

DATA ANALYSIS

1. Demography Of Respondents:

Analysis:-

It was observed that the majority of the respondents consist of professional from

various fields like engineers, software professionals, working executive etc. who

effective form 38% of our database. While 36% were students from various fields.

Others constitute designers and athletes etc. the further study is carried on the

buying behaviour of the above mentioned categories of consumer, which shows

that our consumer is well educated and is very well informed about the product.

2. Consumers Income Level And Spending Capacity On Shoes

Analysis:-

In the survey conducted a direct relation between the income level and the

spending capacity was observed. Also it was found that students were spending in

the range of Rs 1000 Rs 3000 as compared to the working class professionals

who were ready to spend between Rs 3000 Rs 6000, since they have higher

spending power because of higher income levels.

3. Shopping Season:-

4


5/23

Analysis:-

Amongst the student and the professional it was found the consumer buying

behaviour does not change with respect to the seasons and occasion as most of the

consumer would like to buy their shoes as and when need arises, whereas the

businessman generally do their shoes shopping during travelling or on special

occasions.

4. Brand Recollection :-

Analysis:-

When asked about reconciling a sports shoes brand about 70% of the respondents

were able to recall REEBOK or ADDIDAS were as rest were able to remember

NIKE and FILA brands. This was due to the fact that REEBOK has brand

ambassador like RAHUL DRAVID and YUVRAJ SINGH.

5. Factor Influencing The Buying Process:-

Analysis:-

Among the various factors like social, psychological, personal and cultural factors

it was observed that the consumer give more preference to his personal choice and

psychological factors like 50% of the people consider comfort and they generally

do not consider durability as an important aspect because they believe that it comes

along with the brand. Also the social factor like style was second most important

factor behind the consumer buying motives.

6. Comparison With Other Brands:-

Analysis:-

In response to the question about giving, out of 100 point to the various factors

affecting their buying behaviour between NIKE and OTHERS following was

observed:

Others Nike:-

a. Style ____20____ ___30_____

b. Price ____10____ ___10_____

c. Comfort _____30___ ___30_____

d. Brand ____10____ ___20_____

5


6/23

e. Durability _____30___ ___10____

this further shows that the consumer look for style in the NIKE more in

comparison to the other brand hence, gave their 30 points to it whereas 20 in case

of other brands it was seen that the comfort remains at equal place even whilechoosing a competitive brand.

7. Buying Forces:-

Analysis:-

It was observed that consumer is forced by no factors like peer pressure, family

and friends and some time people would like to buy a product because it is being

endorsed by their favourite celebrity. It was observed that the beside that personal

choice of the respondent, the pressure from the friends plays an important buying

force for the students, while the peer and college in case of the professional and the

least pursuing factor is family which was seen in case of the respondents belonging

to age group 35 years and above.

8. No Of People Buying Nikeshoes & Reebok Shoes:-

Analysis:-

This question was asked to know the market capture by the REEBOK and the time

period of association of the customers with REEBOK. It was deduced that more

than 75% of the respondents were using the REEBOK shoes and were mainly

associated with it for a period of 1 year or more. While the remaining respondents

were using either the NIKE or ADDIDAS brand shoes.

9. Customer Satisfaction:-

Analysis:-

Because of the quality product offered by the REEBOK about 60% of the

respondents were either very satisfied or satisfied, while 10% did not gave any

response as they were not using the REEBOK shoes.

a) Do you ask for a specific brand by name?

90% people say yes to this and the remaining 10% say no.

b) Which brand do you generally use?

6


7/23

People in India prefer Nike the most as we can see that 24% people prefer Nike

sportswear then comes Adidas and Reebok.

c) Has any sports shoes ad (seen on TV/in a magazine) made an impact on you?

YES/NO IF YES, THEN WHY

NIKE 43/ 57

ADIDAS 63/ 37

REEBOK 45/ 55

ACTION 30/ 70

Most of the people are influenced with Adidass ad, then with Reebok and then

Nike. The most un-influential is that of action.

d) What according to you is the relative importance of the following?

V. Imp/Imp/Not so Imp/doesnt matter

PRICE 50/ 28/ 12/ 10

DURABILITY 55/ 45/ 0/ 0

BRAND IMAGE 40/ 20/ 15/ 15

COMFORTABLE 54/ 36/ 10/ 0

LOOKS 40/ 40/ 15/ 5

By this we infer that the consumer wants the shoe to be durable that is of

primary importance for them. Then the price is also very important for them.

The shoe should be comfortable. Along with that looks and the brand image is

also important.

e) What features of Nike do you like the most?

The most liked feature of Nike is the light weight shoe. Then the enhanced toe

support. From here we can infer that most important aspect for the consumers

is the comfort they get from the shoes.

f) What range you prefer?

Larger number of people goes in for shoes that come in the range of Rs.1500-

3500. A s we know that Nike is a premium brand 27% of the people buy shoes

that falls under the range of Rs.3500-5500 and lesser no. of people buy shoes

ranging in between 5500 and 7500.

7


8/23

g) How often you buy Nike?

62% of the consumers buy Nike only once a year. Here we notice one thing

that some dont buy Nike.

h) Are you satisfied buying Nike?

The people who buy Nike are fully satisfied buying it, their percentage is 64%.

Only 15 % are not satisfied buying it.

i) Do you think Nike serves the purpose of being a good brand, for Sports wear?

56% of the people agree that Nike serves its purpose for being a sport brand.

Only 27% people dont agree with it.

j) Will you prefer Nike launching a new range which can serve the purpose of

service class?

67% say yes to the idea of launching a new range for the service class. 36

dont have any idea of this

Nikes Market share

Reebok

Adidas

Nike

Action

8


9/23

What features of Nike do you like the most?

0

5

10

15

20

25

3035

40

45

50

light weight enhanced toe

support

Style Price

Nike

What price range do you prefer?

9


10/23

0

10

20

30

40

50

60

70

1500- 3500 3500-5500 5500-7500 above 7500

Nike

How often you buy Nike?

0%10%

20%

30%

40%

50%

60%

70%

Once in

an year

More

than

once in

an year

Doesnt

buy

Nike

Has any sports shoes ad made an impact on you?

10


11/23

0

10

20

30

40

50

60

70

Nike Adidas Reebok Action

YES

NO

CONCLUSION & FINDINGS

The specific brand objective of Nike India would be to build up its brand

reputation, image and equity. A brand is not simply a collection of products and

benefits, but also a storehouse of value stemming from awareness, loyalty, and

association of quality and brand personality. A brand is a name, term, sign, symbol

or design or a combination of them intended to identify the goods or services of

one seller or group of sellers and to differentiate from those of competitors. In

essence, a brand identifies the seller or maker. It can convey up to six levels of

meaning: Attributes, Benefits, Values, Culture, Personality and User. If a company

treats a brand only as a name it misses the point. The branding challenge is todevelop a deep set of positive associations for the brand.

Although these six meanings are noticeable in the Nike brand in the west and other

parts of the world, they are yet to be cultivated in India. Nike has to ensure that

their brand is built up on these pillars in India.

The secondary brand objective of Nike India would be to ensure that they match

the market share and sales volumes of its competitors. After all, a company is in

11


12/23

business to make profits and stay ahead of its competitors. A company, product or

brand may have a very good reputation and image, but if it is not profitable, it does

serve its purpose. At the same time sales figures and data can be misleading. Hence

market share has also to be paid attention to. Nike despite being one of the most

popular brands in the world has not really caught on in India. Yet, there is reason

to believe that Batas Power and Liberty would be ahead of Nike in terms of

popularity. It is also noticed that Nike is at par with Reebok. This again does not

reflect too well on the brand, considering that Nike outsells Reebok everywhere

else in the world. Hence it is reasonable to state that Nikes popularity level in

India could do with a boost. The best way to achieve this would be some serious

brand building. The image of the brand has to be improved and people must be

made aware of its presence. Thus, the rationale behind choosing improvement of

brand image and reputation as the companys primary objective is quite clear.

Nikes distinctive competency lies in the area of marketing, particularity in the area

of consumer brand awareness and brand power. On the global scale this key

distinctive competency towers over the competitors. As a result, Nikes market

share is number-one in the athletic footwear industry in most places around the

world. Catch phrases like, "Just Do It," and symbols like the Nike "Swoosh,"

couple with sports icons to serve as instant reminders of the Nike Empire. It is

about time that this competency is leveraged on to India.

Two key attributes of a distinctive competency are its inability to be easily

replicated and the value or benefit it offers to consumers. Few companies have

such a recognizable image and the resources to promote it. This ultimately

translates into added value for consumers. The public benefits from the strength of

Nikes image at the point of purchase. For decades, consumers have come to

associate the Nike image with quality products. By associating star athletes and

motivational slogans like, "Just Do It," with marketing campaigns that emphasize

fitness, competition, and sportsmanship, consumers identify their purchases with

the prospect of achieving greatness. Younger consumers especially benefit from

this positive influence.

This image is something that competing companies can not easily duplicate by

simply enhancing the physical characteristics of their products.

12


13/23

Nikes vision is to remain the leader in the industry. The company will continue to

produce the quality products that have been provided in the past. Most importantly,

Nike will continue to meet the ever-changing needs of the customers, through

product innovation. In the past, the company has utilized product differentiation as

the main competitive strategy. As Nikes reputation dictates, it will continue to

place emphasis in this area. Nike has built its business on providing products that

rise above all others and this has made it the worldwide success that it is today.

Nike is known for its technologically advanced products and is the leader in this

area. This allows Nikes products to stand out from the rest. The companys focus

also allows it to maintain a somewhat narrow niche that enables it to effectively

capture the needs and wants of the consumers. Nike will also focus on making a

strong effort in price leadership. Nikes products in the past have been

concentrated in the higher end of the pricing category. An entrance will now be

made into lower price categories with these quality products. This will enable Nike

to capture an even greater hold on market share.

Presently, the only form of customer relationship management activity that Nike

has adopted in India is product warranty. Nike shoes come with a one year

warranty. If the shoe is found to be defective or wears out within one year due to

no fault of the wearer, Nike replaces the product. This is only the first step and

more needs to be done in this area.

Being a company that always strives towards excellence, Nike needs to know

exactly what its customers think about their products. A good way of assessing this

would be to have the customer fill in a form at the point of purchase. The form will

ask the customer his / her opinion on the product as well as the showroom.

Suggestions and comments would be welcome. However, care must be taken to

ensure that these forms are not too cumbersome and do not take up too much of the

customers time. Surveys have indicated that normally people dont mind filling in

forms as long as they are not too long.

Another good method would be to introduce a system of customer points. Every

13


14/23

time a customer makes a purchase, he would earn himself a certain number of

points, depending on the price of the product. After he crosses a certain point level,

he would be entitled to a gift from the company or choose a product of a certain

value from the range. This would be helpful in building customer loyalty and give

them an incentive to make repeat purchases. A most valued customer database

could be created from her e and various forms of direct marketing could be

directed at them. This would help the company to retain its existing customers.

A third way to improve customer relationship would be to issue gift coupons and

vouchers. People would have the facility to buy these vouchers and present them to

their dear ones. This would be a good way to reach out towards newer customers

through existing ones.

RECOMMENDATIONS

To explore the mainland market, Hong Kong companies should position

themselves in areas in which they are strong. From the viewpoint of mainland

consumers, Hong Kong's leather consumer goods are considered competitive in the

high-end and mid-range. Mainland consumers are brand conscious, and it is vital to

promote own brands which have clear image.

This survey also shows that Hong Kong products are preferred for their

design/style and quality. Bearing these in mind, Hong Kong companies should

never compromise on quality, and they should allocate more resources to product

design, selection of material and craftsmanship.

Other Suggestion Includes

Department stores are the prime sales and marketing channel for leather consumer

goods. 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.

14


15/23

In addition to promotional activities in shopping malls and department stores,

discounts and TV commercials are considered effective channels for promotion. It

is advisable to pay attention to the affordability of customers in different cities,

while setting price points for different product categories. Meanwhile, leather

shoes offer better growth potential.

Popular materials used for leather consumer goods include bovine skin,

goat/kid/lamb/sheep skin and crocodile skin. Regarding colours, black is by far

most sought-after with dark brown in second place.

Due to their growing spending power, the rising middle class should be the target

of Hong Kong's sellers of leather consumer goods. Hong Kong companies should

put more emphasis on products for business use. In addition, it is useful to

introduce appropriate designs that cater for the tastes of the middles class.

15


16/23

ANNEXURE

Questionnaire

Contact Information:

Name: _________________________________________________________

Address: _________________________________________________________

City, State & Zip:

_________________________________________________________

Telephone: (Home) ____________________________

(Work)____________________________

Date Of Birth: ________________________________Sex: Male___ Female___

Background:

Ethnic origin(check only one):

White ( ) Black ( )

Asian ( ) Filipino ( )American ( ) Other ( )

16


17/23

Which of the following sector do you work?

Finance ( ) Sale/ Marketing ( )

Corporate Mngt ( ) Information System ( )Service sector ( ) Self Employed ( )

Other____________

Your monthly income comes in which of the following:

Less than AED.5000 ( )

Between AED.5000 15000 ( )

Above AED.15000 ( )

What is the highest level of education you have completed?

Did not finish high school ( )

High school diploma ( )

Graduate degree ( )

Post- Graduate degree ( )

Product Analysis:

1. Which brand of shoes listed is your favourite (check only one)?

Converse

Nikes

Adidas

Action

Skechers

Reebok

And 1

2. When you think about your favourite brand of running shoes, does this

brand remind you of a person?

Yes ( )

No ( )

3. How do you find out the latest product in the market?

17


18/23

Internet

Magazines (Sports related)

TV

Sporting Goods Store (In-store promotions)

Other __________________

4. I buy my own shoes.

Very frequently

Frequently

Sometimes

Never

5. I find buying shoes a pleasurable event.

Very frequently

Frequently

Sometimes

Never

6. I buy costly shoes.

Very frequently

Frequently

Sometimes

Never

7. For purchasing shoes I can travel long distance.

Very frequently

Frequently

Sometimes

Never

8. I buy shoes which are liked by my family.

Strongly agree

18


19/23

Agree

Indifferent

Disagree

Strongly Disagree

9. I buy shoes which are advertised attractively.

Strongly agree

Agree

Indifferent

Disagree

Strongly Disagree

10. I like to buy shoes which are imported &designed in Paris or Italy.

Strongly agree

Agree

Indifferent

Disagree

Strongly Disagree

11. I buy shoes which are advertised and endorsed by celebrity.

Strongly agree

Agree

Indifferent

Disagree

Strongly Disagree

12. I like to buy shoes which are less expensive but very stylish & of latest

design.

Strongly agree

Agree

19


20/23

Indifferent

Disagree

Strongly Disagree

13. I like to buy shoes which are not expensive & stylish but comfortable and

long lasting.

Strongly agree

Agree

Indifferent

Disagree

Strongly Disagree

14. I like to buy Nike shoes which are less expensive but very stylish & of

latest design.

Strongly agree

Agree

Indifferent

Disagree

Strongly Disagree

15. I will certainly buy shoes if high quality matching imitation jewelleries &

quality scents are given free.

Strongly agree

Agree

Indifferent

Disagree

Strongly Disagree

16. My expectation is fulfilled by my shoe supplier.

Strongly agree

Agree

20


21/23

Indifferent

Disagree

Strongly Disagree

17. Shoe companies should survey customer preferences.

Strongly agree

Agree

Indifferent

Disagree

Strongly Disagree

18. Shoe companies should suggest shoe design using celebrity.

Strongly agree

Agree

Indifferent

Disagree

Strongly Disagree

19. I know exactly what I want in my shoes.

Strongly agree

Agree

Indifferent

Disagree

Strongly Disagree

20. I dont want to spend too much time on deciding my shoes.

Strongly agree

Agree

Indifferent

21


22/23

Disagree

Strongly Disagree

21. Which of the listed is the best form of advertisement?

T.V advertisement

Stores display

Magazines

Online

BIBLIOGRAPHY

Books:

Marketing Management - Philip Kotler

Consumer Behaviour, 6th Edition, by Hawkins, Best ad Coney.

Websites:

www.nikebiz.com

www.business.com

www.apnabangalore.com

www.indiainfoline.com

www.nike.com

Nikes online store

Newspapers:

Economic Times

Gulf News

Journals

Advertisement

22
http://www.nikebiz.com/http://www.business.com/http://www.nikebiz.com/http://www.business.com/


23/23

Office:

Nike India Pvt. Ltd. Bangalore, Karnataka, India

Nike Dubai Outlets

Documents

Nike Details.doc