Project of Consumer Behaviour

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



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 Project
Report. It has been a great experience working on the concept of CONSUMER BEHAVIOUR
REGARDING VARIOUS BRANDED SHOES. It gives us complete insight of this concept of
marketing 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 college
Gujranwala 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 whose
concerned 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 report
only we responsible for whom we hope that all concerning regards of this report will forgive
us.

Muhammad Naveed Ehsan
Ali Shahroz
Shoaib Shahid
Muhammad 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 is
highly appreciated as it provides the students with an opportunity to acquaint them with the
outside 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 branded
shoes. For this purpose, information is collect from some areas of Gujranwala.



EXECUTIVE SUMMARY

This project looks in various kinds of Merchandising activities, market share of different
shoes and various sales promotion schemes, which are follow in the shoe industry. The three
major 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 the
three. The companies claim to be in number one sport coating the data produced by two
different marketing research companies.

In the 1980s, Adidas sneakers became popular amongst teenagers and young men. The
Adidas sneakers were popularized by the Run DMC song My Adidas and became a huge
fashion trend. The Tapie affair the history of the company as presented by its official web site
is incomplete, perhaps because it is indirectly linked to financial scandals. After a period of
serious 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. Almost
unexpectedly, the company established itself as one of the worlds most familiar brands
during the 1980s and 1990s.

As familiar as a coke bottle or Big Mac, the Nike swoosh logo came to symbolize not just
sports culture, but street culture, as the appeal of the star players who endorsed the brand was
carried 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 is
also 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 first
half of 2008 and will create the second-largest sporting goods company behind Nike with
11billion in revenues.

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

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



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 of
research methodology for developing the project gives us the necessary training in gathering
materials and arranging them, participation in the field work when required, and provides
training 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 selecting
a 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 to
constitute a sample. This is a major problem before the researcher. The size of sample
should 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 in
this research is 50.



INSTRUMENTS USED

Primary data collected through sample survey from the selected elements in malls and super
markets. Therefore, for this purpose I have most popular tool of primary data collection
through 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 this
happen to be original in character.
b) Secondary Data: secondary data are those data which have already been collected by
someone 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 during
research as our research is concerned we have to gather primary data for customer preference.

RESEARCH INSTRUMENTS
QUESTIONNAIRE 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 are
convenience 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 in
hurry hence the active participation was lacking. Due to which I faced difficulties in
collecting informations regarding our questionnaire.

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


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, delivering
state-of-the-art sports footwear, apparel and accessories. Today, Adidas is a global leader not
only in the shoe industry, but also in the sporting goods industry. Shoes from the Adidas are
available 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 companys
clothing and shoe design typically involve three parallel stripes of the same color and the
same 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 shoes
that 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 Gebruder
Dassler Schuhfabrik, in Herzogenaurach in Germany. Adolf Dassler designed a pair of sport
shoes in 1925 and few years later, he and his brother Rudolph were selling special shoes for
tennis players and began design specific shoes for different sports. The family company split
in 1948. After the split, Adolf (Adi) Dassler founded Adidas and his brother Rudolph
founded Puma. Adi Dassler designed the three-stripe logo in 1941 and he registered it as a
trademark for Adidas after the split.

The strength of Adidas was its product innovation. Adi Dassler registered more than seven
hundred patents. Adidas began selling its shoes in the United States after 1968 and in few
years, 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 in
Munich, every official wore Adidas.

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

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


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

COMPETITORS

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

ENHANCEMENT

In the 1980s, Adidas sneakers became popular amongst teenagers and young men. The
Adidas 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 son
Horst Dasseler in 1987, Bernard Tapie for 1.6 billion French Frances ($320million), which
Tapie borrowed, bought the company in 1990. Tapie was at the time a famous specialist
rescuing 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 of
the enterprise, which was unusual for then-current French banking practice. Apparently, the
State-owed bank had tried to get Tapie out of dire financial straits as a personal favor to
Tapie, reportedly because Tapie was a minister of Urban Affairs in the French government at
the time.

February 1993, Credit Lyonnais sold Adidas to Robert Louis Dreyfus, a friend of Bernard
Tapie, for a much higher amount of money than what Tapie owed 4.485 billion francs rather
than 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 the
Olymique de Marseille football team, to which Tapie is closely linked. Tapie went bankrupt
himself in1994. He was the object of several lawsuits, notably related to match fixing at the
football 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 changed
toAdidas-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 and
meant that the company will now have closer business sales as those of Nike in Northern
America. The acquisition of Reebok will also allow Adidas to compete with Nike
Worldwide. World cup 1954 when West Germany miraculously won the soccer 1954 World
Cup, 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


equipped with short studs; when it rained; longer studs were screwed on the bottom of the
shoes. As the final game against the highly-favoured team from Hungary was played in heavy
rain, 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 to
advertise specific or general products. Adidas use David Bekham as their brand ambassador
and many more celebrities in every region to promote their product. Adidas already has
heavy weight sportsmen such as Sachin Tendulkar, Leander Paes & Mahesh Bhupathi
endorsing the brand in India. They had the image, apart from endorsing the performance
element 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 AG
called Adidas Pakistan Ltd. and announced its joint venture with Magnum International
Trading 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 raised
to US $ 6.4 million with the equity structure remaining the same. Currently, the total
investment stands at US $ 11.4 Million with the equity structure changing to 91.4% by
Adidas and 8.6% by magnum.
Adidas Range of Products
A month after announcing the joint venture, Adidas Pakistan Ltd. launched its range of sports
footwear, apparel and accessories in Karachi on November 1, 1996. Subsequently, Adidas
products were also launched in Lahore, Faisalabad, Islamabad, Peshawar, Gujranwala
Currently, Adidas products are available in 15 cities in Pakistan.
The range of Adidas products available in Pakistan include sports footwear featuring some of
the 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 range
of 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 brand
name is Adidas and it is displayed with a trefoil logo. This logo, a very popular one, is a
signature of Adidas' brand. It had been launched in 1972. The new Adidas logo, three stripes
running across its several products, was introduced in 1991. In 2006, Adidas acquired the
Reebok 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


of emphasis on advertising. The strong brand management has successfully branded the
company 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 the
competition 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 also
they 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 first
half of 2006 and will create the second-largest sporting goods company behind Nike
with$11billion in revenue.

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

HISTORY

Reeboks origins go back to 1895 when Joseph William Foster made running shoes with
spikes in them. He formed a company called J.W.Foster and sons which made shoes for
athletes in the 1924 summer Olympics. In 1958, two of the founders grandsons started a
companion 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 Reebok
shoes at an international trade show. He negotiated for the North American distribution
license and introduced three running shoes in the U.S that year. At $60, they were the most
expensive running shoes on the market.

By 1981, Reeboks sales exceed 1.5 million, but a dramatic was planned for the next year. In
1982, Reebok introduced the first athletic shoe designed especially for the women; a shoe for
a new fitness exercise called aerobic dance. The shoe was called the freestyle, and with it
Reebok anticipated and encouraged three major trends that transformed the athletic footwear
industry: the aerobic exercise movement, the influx of women into sports and exercise and
the acceptance of well-designed athletic footwear by adults for street and casual wear.

REEBOK



Reebok went public in 1985. The Chairman and CEO of Reebok was Paul Fireman. He was
the one to introduce the Freestyle in 1980 he was the founder and innovator of Reebok. He
left 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 now
responsible for Reebok brands business around the world, and he reports to the chairperson
and CEO of the Adidas group. The top 3 CEO connections are Mr. John Warren who is the
chief financial officer and general manager of sports licensed division, Mr. Terry R. Pillow
senior vice president, and Mr. Rick Paterno senior Vice President. The top five shareholders
are Bardwil Industries Inc, Dr. Martens Airwair USA, llc, Native Intimates Ltd., Welspun
USA, Ins., Alpha Mills Corporation. Its headquarters are in Canton, Massachusetts, U.S.A. its
regional offices are in Amsterdam, Montreal, Hong Kong, and Mexico City.

REEBOK'S VISION

Reebok is dedicated to providing each athlete - from professional athletes to recreational
runners to kids on the playground - with the opportunity, the products, and the inspiration to
achieve 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 and
employees 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 our
mark when we have had the courage to challenge convention. Reebok creates products and
marketing programs that reflect the brands unlimited creative potential.

REEBOK'S POSITIONING

Celebrate Individuality in Sport and Life
Reebok 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 celebrates
their individuality, their authenticity and the courage it takes to forge their own path to
greatness. While some may call them crazy or eccentric, Reebok calls them visionary and
original.

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 this
effort. Reebok has expanded on what had been built and created a Global Corporate
Citizenship platform with a purpose for the brand that will help underprivileged, underserved
youth 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


unique 'Reeword.' The tone and manner allows the consumer to look at sport and lifestyle
through 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 prices
of these stuffs depend upon the design, comfort and material used. Reebok shoes, apparels
and other accessories in India are expensive when we compare it with other brands but still
are 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 looking
for. 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 apparels
for 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, wind
cheater etc. in different designs and colours. Prices of these apparels depend upon the quality
and style of the product being taken. During season sale, the company also offers discounts
on these products.
Recent Activities of Reebok
In 2009, Reebok launched JUKARI Fit to Fly, an innovative gym workout designed
for 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 globally
renowned 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 pods
under 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 and
Ireland and had also introduced Your Reebok an application to design your own
Reeboks.
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 all
teams sport the new style for both their home and away jerseys.
In July 2007, Reebok launched its Lifestyle Footwear Collection in association
with Daddy Yankee's new album. In December 2007.


In June 2007, Reebok announced Scarlett Johansson on its array of brand
ambassadors. 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 Portland
metropolitan area. It is the world's leading supplier of athletic and apparel and a major
manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year
2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide.
Nike and Precision Castparts are the only Fortune 500companies headquartered in the state of
Oregon, according to The Oregonian.
The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bower
man and Philip Knight, and officially became Nike, Inc. on May 30, 1978. 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, Air Jordan, Nike Skateboarding and subsidiaries
including Cole, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey
(later renamed Nike Bauer) between 1995 and 2008.[4] 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.
HISTORY
Nike, originally known as "Blue Ribbon Sports", was founded by University of Oregon track
athlete Philip 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.
The company's profits grew quickly, and in 1967, BRS opened its first retail store, located on
Pico Boulevard in Santa Monica, California. 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 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 on
January 22, 1974.
The first shoe sold to the public to carry this design was a soccer shoe named Nike, which
was released in the summer of 1971. In February 1972, BRS introduced its first line of Nike
shoes, 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


athlete to sign with BRS/Nike, the sponsorship of athletes became a key marketing tool for
the rapidly growing company.
The company's first self-designed product was based on Bowerman's "waffle" design. After
the University of Oregon resurfaced the track at Hayward Field, Bower man began
experimenting with different potential outsoles that would grip the new urethane track more
effectively. His efforts were rewarded one Sunday morning when he poured liquid urethane
into his wife's waffle iron. Bowerman developed and refined the so-called 'waffle' sole which
would 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 the
company 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's
first national television commercials ran in October 1982 during the broadcast of the New
York Marathon. The ads were created by Portland-based advertising agency Wieden
Kennedy, which had formed several months earlier in April 1982.
Together, Nike and Wieden Kennedy have created many print and television advertisements
and the agency continues to be Nike's primary today. 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 20
th
century, and the
campaign has been enshrined in the Smithsonian Institution. San Franciscan Walt Stack was
featured in Nike's first "Just Do It" advertisement that debuted on July 1, 1988. Wieden
credits the inspiration for the slogan to "Lets do it", the last words spoken by Gary
Gilmore before he was executed. Throughout the 1980s, Nike expanded its product line to
include many other sports and regions throughout the world.

PRODUCT

Nike produces a wide range of sports equipment. Their first products were track running
shoes. They currently also make shoes, jerseys, shorts, base layers etc. for a wide range of
sports including track and field, baseball, ice, hockey, tennis, association
football (soccer), lacrosse, basketball and cricket. Nike Air Max is a line of shoes first
released by Nike, Inc. in 1987. The most recent additions to their line are the Nike 6.0, Nike
NYX, and Nike SB shoes, designed for skateboarding. Nike has recently introduced cricket
shoes, 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 the
environment in mind.

Nike sells an assortment of products, including shoes and apparel for sports activities
like association football, basketball, running, combat sports, tennis, American
football, athletics, golf and cross training for men, women, and children. Nike also sells shoes
for outdoor activities such as tennis, golf, skateboarding, association
football, baseball, American football, cycling, volleyball, wrestling, cheerleading, aquatic
activities, auto racing and other athletic and recreational uses. Nike is well known and
popular in youth culture, chav culture and hip hop cultureas they supply urban
fashion clothing. Nike recently teamed up with Apple Inc. to produce the product, which


monitors a runner's performance via a radio device in the shoe which links to the iPod nano.
While the product generates useful statistics, it has been criticized by researchers who were
able to identify users' RFID devices from 60 feet (18 m) away using small, concealable
intelligence motes in a wireless sensor network.
MANUFACTURING
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 Corp Watch, Nike has
disclosed information about its contract factories in its Corporate Governance Report.

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 OF
RESPONDENT
PERCENTAGE OF
RESPONDENTS
15-25 23 46
26-35 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


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.

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.

EDUCATION LEVEL FREQUENCT OF
RESPONDENT
PERCENTAGE OF
RESPONDENTS
U. GRADUATE 19 38
GRADUATE 16 32
POST GRADUATE 5 10
ANY OTHER 10 20

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.



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.

TYPE OF FAMILY FREQUENCY OF
RESPONDENTS
PERCENTAGE OF
RESPONDENT
NUCLEAR 27 54
JOINT 23 46

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.

MARITAL STATUS

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

MARITAL STATUS FREQUENCY OF
RESPONDENTS
PERCENTAGE OF
RESPONDENT
MARRIED 19 38
UNMARRIED 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


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.

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 OF
RESPONDENTS
PERCENTAGE OF
RESPONDENT
5-10 10 20
10-15 12 24
15-20 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


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

TYPE OF SHOES LIKE TO WEAR

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

TYPE OF SHOES

FREQUENCY OF
RESPONDENT
PERCENTAGE OF
RESPONDETS
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
ANY
OTHER


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 students
first 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 OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
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 OF
RESPONDENTS
PERCENTAGE OF
RESPONDENT
NIKE 30 60
SERVICE 24 48
ADIDAS 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


REEBOK 31 62
ANY 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 are
48% 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 to
other 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 ANY
OTHER
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 OF
RESPONDENT
PERCENTAGE OF
RESPONDENTS
NIKE 11 22
SERVICE 5 10
ADIDAS 19 38
REEBOK 13 26
ANY OTHER 2 4


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 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 to
departmental 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 OF
RESPONDENTS
DEPARTMENTAL
STORE
9 18
ORDINARY
SHOWROOM
17 34
EXCLUSIVE
SHOWROOM
20 40
ANY OTHER

4 8


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.

TYPE OF MEDIA FREQUENCY OF
RESPONDENT
PERCENTAGE OF
RESPONDENTS
ADVERTISEMENT 13 26
FRIENDS 9 18
SALES PERSONS 19 38
EXCLUSIVE SHOWROOM 9 18
ANY OTHER NIL NIL

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.

AFFECT OF ADVERTISEMENT ON BUYING DECISION

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

RESPONDENT
PERCENTAGE OF
RESPONDENTS
YES 36 72
NO 14 28
ADVERTISEMEN
T
26%
FRIENDS
18%
SALESPERSON
38%
E.SHOWROOM
18%
Advertising media


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%respondents decision is not affected by advertisement.

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.

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%
YES
NO
78%
22%
%
o
f

r
e
s
p
o
n
d
e
n
t
s
Responses
Effect of price
yes
no
RESPONDENT
PERCENTAGE OF
RESPONDENTS
YES 39 78
NO 11 22


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.

REPURCHASE PERIOD

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

REPURCHASE PERIOD FREQUENCY OF
RESPONDENT
PERCENTAGE OF
RESPONDENTS
ONCE A YR 18 36
TWICE A YR 14 28
THRICE 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 special
occasions.

FACTORS AFFECTING THE PURCHASING DECISION

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

36%
28%
4%
24%
8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
%
o
f

r
e
s
p
o
n
d
e
n
t
s
Period
purchasing behaviour


FACTORS LARGE
EXTENT(3)
SOME
EXTENT(2)
LEAST
EXTENT(1)
WEIGHTED
AVERAGE
PRICE 28 13 9 2.38
QUALITY 45 5 - 2.9
SIZE 50 - - 3
DESIGN 26 17 7 2.38
COLOR 19 18 13 2.1
DURABILITY 35 10 5 2.6
AVAILABILITY 38 8 4 2.68
BRANDIMAGE 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 between
the some extent and least extent.

CUSTOMER SATISFACTION LEVEL FROM DIFFERENT ATTRIBUTES OF A PRODUCT
Customer is king of the market so he wants maximum satisfaction from the product that he
buys.
FACTORS HIGHLY
SATISFIE
D
(5)
SATISFIE
D
(4)
NEUTR
AL
(3)
DISSATISFI
ED
(2)
HIGHLY
DISSATISFI
ED
WEIGH
T-ED
AVERA
GE
PRICE 7 23 17 2 1 3.64
BRAND
IMAGE
23 15 7 5 _ 4.12
QUALITY 18 21 11 - - 4.14
SIZE 17 19 13 1 - 4.04
2.38
2.9
3
2.38
2.1
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


COMFORT 25 17 8 - - 4.34
DURABILI
TY
15 27 8 - 1 4.14

INTERPRETATION

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

BRAND LOYALTY

Brand loyalty refers to that a customer being permanent consumer of brand and he never
switch over to other brand.

3.64
4.12
4.14
4.04
4.34
4.14
4.12
4.14
4.04
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
RESPONDENT
PERCENTAGE OF
RESPONDENTS
YES 21 42
NO 29 58


INTERPRETATION

Study indicates that only 42% is the loyal customers and 58% will change their brand if all
the 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. 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.



CONCLUSION

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

BIBLIOGRAPHY

The list of reference for completing this Project is:
BOOKS:
Marketing management By: Philip Kotler
Marketing management By: J.C Gandhi
Functional management By: R.K.Sharma
INTERNET:
www.google.com
www.wlkipedia.com
www.paradise.com
NEWSPAPER:
Economic times

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