A SUMMER TRAINING REPORT ON

MARKETING STRATEGY OF NIKE AT “NIKESHOES

INDUSTRIES LIMITED”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF

BUSINESS ADMINISTRATION (BBA)

TRAINING SUPERVISOR SUBMITTED BY

SESSION 2005-2008

ACKNOWLEDGEMENT

The present work is an effort to throw some light on Marketing Strategy of Nike at “Nike
Industries Limited”. The work would not have been possible to come to the present shape
without the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance received by my
organizational guide …………..and other staff members.

I convey my heartful affection to all those people who helped and supported me during the
course, for completion of my Project Report.

……………..

EXECUTIVE SUMMARY
This marketing strategic plan has been written keeping in mind the Indian operations of Nike Inc.
– the global sports shoe giant. It aims first, at analyzing the sports shoe industry India and
finding a place in it for Nike. It then sets out to describe the target audience for the product range
and finally suggests a host of marketing strategies and activities that will help Nike to achieve its
target of becoming the #1 sports shoe brand in India.

The plan begins with a brief overview of the product category being dealt with, namely premium
quality sports shoes. It also dwells briefly on the history of the company and its current position
and activities.

The project moves on to the crux of the matter – the marketing plan to be followed by Nike in
India. Firstly, the objectives behind this plan and the core strategy are stated. Customers to be
eventually targeted are described and compared with competitors’ customer targets. After
starting the objectives and reasoning behind them, the actual marketing programs are described
in detail. This includes aspects such as pricing, advertising, promotion, sales, channels, and the
company website. Suggestions are made on each and every one of these aspects; improvements
and innovations are recommended.

The plan then goes on to the customer analysis section. The customer base is identified and
various segments are pointed out. Various criteria and factors have been taken into consideration
while segmenting the market. We have also tried to ascertain why customers buy these products,
how they choose, and what factors matter most when making their decisions.

The last few pages of this marketing plan deal with the various ways in which the plan, once
implemented, can be monitored and controlled

TABLE OF CONTENT

1) INTRODUCTION 1-13
a) Background of the problem 1
b) About The Nike Industry 3
c) Nike Maxsight 4
d) Industry Overview 5
e) Product Trend 8

2) RESEARCH METHODOLOGY 14-20

a) Research objectives 14
b) Research design 15
c) Data sources 15
i) Primary data 15
ii) Secondary data 15
d) Questionnaire design formulation 16
e) Sample design 17
f) Limitations of the research 20

3) COMPANY PROFILE 21-43

a) Nike Industries Ltd. – A company profile 21
b) Recent Development 21
c) Future Plan 23
d) Risk and Concern 28
e) Literature Review 31
f) 4ps of Nike 40
g) SWOT Analysis 41

4) DATA ANALYSIS 44-63

5) CONCLUSION & FINDINGS 64-67

6) RECOMMENDATIONS 68-75

a) OTHER SUGGESTION INCLUDE 69

7) ANNEXURE 76-82

8) BIBLIOGRAPHY 83

INTRODUCTION

BACKGROUND OF THE PROBLEM

Since the late 1980s, Business School marketing professor Itamar Simonson has looked for ways
to understand how consumers make choices. Much of his work debunks the accepted theory that
giving consumers what they want and making a profit are the most basic principles of marketing.
Customers may not know what they want, and second-guessing them can be expensive, says the
professor who teaches MBA and PhD marketing and consumer decision-making courses. In
Simonson’s words, “The benefits and costs of fitting individual customer preference are more
complex and less deterministic than has been assumed.” That’s because “customer preferences
are often ill-defined and susceptible to various influences, and in many cases, customers have
poor insight into their preferences.” In one of his recent papers, Simonson tackles the issue of
one-to-one marketing and mass customization. Supporters of these marketing approaches have
suggested that learning what customers want and giving them exactly what they want will create
customer loyalty and an insurmountable barrier to competition.

In an example taken to the extreme in the 2002 movie Minority Report, Tom Cruise’s character
runs through a shopping mall past talking billboards that recognize him by name and urge him to
buy products he had earlier expressed an interest in such as jeans and Ray-Bans, the ultimate in
personalized advertising. But Simonson has this to say: “The fact that consumer preferences are
often fuzzy, unstable, and manipulatable is unlikely to change. So, the effectiveness of methods
to give customers exactly what they (say they) want has been grossly exaggerated.” His take on
the long-held assumption that individual marketing will supplant targeted marketing is “not so
fast.” In studies, he has learned that “even when customers have well-defined preferences and
receive offers that fit those preferences, it is far from certain that the response to such offers will
consistently be more favorable than those directed at larger market segments.”

It’s all psychology. Consumers with well-defined preferences may be skeptical that a marketer
could match expectations. Those who don’t know what they want may not ever see the fit with
what the seller wants them to buy. So, individualized offers depend on customers’ preferences &;
how the offer was extended &; and on trust. “Effective individual marketing requires not only an
understanding of individual preferences and matching offers to those preferences, but also a
thorough familiarity with the various factors that impact customers’ responses,” Simonson
writes. This is a tall order, one that some companies have been able to fill, at least to some
extent. For example, Amazon keeps track of customers’ purchases and suggests other books they
might like. Dell builds computers from mass-made parts to customers’ specifications. But
Simonson argues some companies can take the concept too far, like the Custom Foot chain of
shoe stores that took detailed measurements and specifications from each customer to design
one-of-a-kind shoes. Custom Foot didn’t take into account that some customers were put off by
the individualized attention, Simonson says, and felt obligated to buy the shoes because the store
went to so much trouble. They often didn’t come back. So knowing only the customer
preferences is not enough. It is required to understand other aspects of customer behavior.
Kipping this in mind, present study will find out and analyze consumer behavior of Nike shoes
with reference to ladies segment.

ABOUT THE NIKE INDUSTRY

In sport, visual acuity and protection can mean the difference between winning and losing. Light
conditions have a dramatic effect on how the human eye perceives and, subsequently how the
body reacts and performs -- in the sun glinting over the upper deck, shallow contrast on a putting
green, or quickly adjusting from shadows to light on a tennis court or mountain bike single track.

Nike knows that in athletic competition, even small advantages are critical to performance. Nike
has spent the last eight years exploring the human eye to understand the science of vision in the
development of the new Nike MaxSight Sport-Tint Contact Lens, available August 2005.

WHAT IT IS
Nike MaxSight, developed in partnership with Bausch & Lomb, is a tinted soft contact lens that
behaves like sunglasses, reducing glare and filtering out 95% of UVA and UVB and more than
90% of blue light. But because the lens rests directly on the eye, there’s virtually no distortion as
with standard sunglasses. Athletes get the same clear view at all angles.

Plus, Nike MaxSight eliminates the environmental effects that plague sunglasses like fogging,
scratching, additional weight, or nosepieces and frames to obstruct vision. There’s no obstruction
from the edge of the lens, the frame or the nosepiece, because they don’t exist. And there are no
pressure points and no slippage. Max Sight also eliminates light leakage, reducing the need to
squint, allowing the eye to relax and perform more naturally.

Nike MaxSight is, in effect, one giant visual sweet spot.

Nike Maxsight

HOW THEY WORK

Nike’s patented Nike MaxSight Light Architecture™ selectively alters specific wavelengths of
light within the visual spectrum to enhance key elements in sport. The athlete gets crisp, clear
vision without anything getting in their way. By removing most of the blue light, contrast and
clarity are enhanced — a decided advantage for any competitor. For sports not conducive to
eyewear, such as golf, tennis and soccer, athletes will see marked improvement, even on days
where the sun’s not at its brightest.

Nike MaxSight provides through-and-through tinting (unlike cosmetically tinted lenses), so

there’s no bending or scattering of light. Plus there’s limited incidental light or peripheral
flickering creeping around the sides, as with sunglasses. Athletes tested in Nike MaxSight lenses
found they squinted less, were able to relax more, and had exceptional views of contours and
movement.

Marco Materazzi of Italy’s Inter Milan football club and Baltimore Orioles second baseman
Brian Roberts are among the pro athletes wearing Nike MaxSight. “It has been a lot of fun to
start the season this hot,” said Roberts early in the MLB season. In fact, he became one of the
first true fans of Nike MaxSight after impressive initial results. During a spring daytime game,
Roberts said, “I wore the lenses and went 2 for 4. They are so awesome.”
With Nike MaxSight, there’s minimal squinting in bright light, and quicker visual definition
when going from bright light to shadows.

Wearers will also discover a game-day benefit – the look. “It makes the eye look distinct, the
large-pupil effect,” says Alan Reichow, Nike Vision Consultant. “It looks competitive.”

ROLL OVER PHOTOS FOR A MAXSIGHT LENSE SIMULATION

THE WEAR
Nike MaxSight is a 30-day lens, though most athletes will wear them selectively and for short
durations. Lenses come in six-pack packaging. Nike MaxSight is available with or without a
correction, thereby making it accessible to athletes whether they wear contacts or not.

THE HISTORY
Nike began exploring the Nike Max Sight technology in 1997, conducting an initial clinical
project, then subsequent research projects using collegiate athletes. Oregon’s Pacific University
baseball players were the first athletes to undergo testing. Coach Greg Bradley requested that he
be allowed to try them before his players. “He’d never worn contacts,” says Dr. Reichow. “He
took two pitches and turned around and said, ‘I’ve never seen a ball that distinct and clear. Put
them on anybody who wants them.’

INDUSTRY OVERVIEW
Bill Bowerman said this couple of decades ago. The guy was right. It defines how he viewed the
world, and it defines how Nike pursues its destiny. Ours is a language of sports, a universally
understood lexicon of passion and competition. A lot has happened at Nike in the 30 years since
we entered the industry, most of it good, some of it downright embarrassing. But through it all,
we remain totally focused on creating performance opportunities for everyone who would
benefit, and offering empowering messages for everyone who would listen.

We feel lucky to have a genuine, altruistic reason to be: the service of human potential. That's the
great benefit of sports, and we're glad to be in the middle of it.
What started with a handshake between two running geeks in sleepy Eugene, Oregon, are now
the world's most competitive sports and Fitness Company. The World Headquarters is in
Beaverton, Oregon. The Pacific Northwest is Nike's hometown, but like so many ambitious
souls, we have expanded our horizons to every corner of the world. Nike employs around 23,000
people, and every one of them is significant to our mission of bringing inspiration and innovation
to every athlete in the world.
Along the way Nike joined up with some great partner companies that help extend our reach
within and beyond sports.

Cole Haan offers casual luxury footwear and accessories out of New York City and Yarmouth,
Maine.

Bauer Nike Hockey, based in Montreal, Quebec, is the world's leading manufacturer of hockey
equipment and a wholly owned subsidiary of Nike, Inc.

Nike partnered with Hurley International, a premium teen lifestyle brand founded by 20-year
industry veteran Bob Hurley based in Costa Mesa, California.

In 2003, Nike completed the acquisition of Converse, the globally recognized footwear brand
with nearly a century of sports heritage, and home of the perennially popular Chuck Taylor All-
Star and Jack Purcell footwear.

Exeter Brands Group: In August 2004, Nike created the Exeter Brands Group, a wholly owned
subsidiary, dedicated to building athletic footwear and apparel brands for the value retail
channel. This portfolio of brands includes the Official Starter Properties LLC and Official Starter
LLC which are the sole owners and licensors of the Starter, Team Starter and Asphalt brand
names as well as master licensee of the Shaq and Dunkman brands, a line of athletic apparel,
footwear and accessory products for the value retail channel.
Separate business units within the Nike brand include The Jordan/Jumpman 23 brand and Nike
Golf.

As small as we feel, the Nike family is a fairly vast enterprise. We operate on six continents. Our
suppliers, shippers, retailers and service providers employ close to 1 million people. The
diversity inherent in such size is helping Nike evolve its role as a global company. We see a
bigger picture today than when we started, one that includes building sustainable business with
sound labor practices. We retain the zeal of youth yet act on our responsibilities as a global
corporate citizen.

If you have a body, you are an athlete. And as long as there are athletes, there will be Nike.

PRODUCT TREND
Bovine skin was by far the most preferred leather material, followed by goat/kid/lamb/sheep skin
and crocodile skin.

Respondents overwhelmingly preferred the color black and, to a lesser extent, dark brown. For
handbags/briefcases, popular colors included light brown, white and red. Consumer Segments
with the Biggest Spending Power Male professionals, managers and executives are the segment
with the biggest spending power for now and in the coming three years. Other major consumer
segments include male office workers; sole proprietors/business owners; female office workers;
and female professionals, managers and executives.

The Competitiveness of Hong Kong Brands/Suppliers of Leather Consumer Goods. Most

retailers consider Hong Kong brands to be either very competitive or quite competitive in both
high-end and mid-range segments, but less competitive in the low-end segment. The
competitiveness of Hong Kong brands mainly rests on their product style/design and quality,
with most respondents picking those as the major reasons behind the attractiveness of Hong
Kong brands in the high-end and mid-range segments respectively.

PRODUCT PROFILE
Apart from delivering a pair of comfortable sports shoes Nike also provides a number of value-
added features with its products. The features that are a part of every Nike sports shoe are as
follows.

High Performance Sports Shoes: Nike has patented the “Air” system and has made it into a
regular feature in most of its models. Many models feature an air pocket in the shoe that reduces
the weight of the shoe and reduces pressure on the heels. Besides the overall design and
compactness of the shoes have made it a favorite of many professional athletes around the world.

Comfort: Nike shoes are renowned all over the world for the comfort they provide. Well padded
and cushioned, they provide a tremendous level of comfort to the wearer and reduce the strain to
his feet while playing.

Lightweight: This attribute is in line with the two described above. A lightweight shoe provides
greater mobility and eases the pressure on the feet of the wearer.

Durability: People purchasing a pair of shoes at such a high price often feel that they have made
an investment. They would obviously want to see their shoes last a long time. To prove this point
we draw the example of the authors of this marketing plan. All of us own a pair of Nike’s and
have been wearing them for well over two years – a symbol of the durability of Nike shoes.

Style: Nike’s designs are considered to be the most stylish in the industry and beat all others as
far as looks are concerned. Attractively packaged, it is a delight to bring a pair home. Add to this
the “Swoosh” – the most recognizable symbol in sports and you have a product that would give
the user a definite sense of pride.

Nike shoes also come with a guarantee card that enables the owner to return it in case of
manufacturing defects. However, owing to the fact that the company implements strict quality
control measures, coming across a defective pair in a store are a rarity. The most recent additions
to their line are the Nike 6.0 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'.[ Nike positions its products in such a way as to try to appeal to a
"youthful....materialistic crowd".[5] It is positioned as a premium performance brand.

NIKE 6.O

NIKE SB
RESEARCH METHODOLOGY

Research comprise defining and redefining problems, formulating hypothesis or suggested

solutions; collecting, organizing and evaluating data; making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating Hypothesis.
In short, the search for Knowledge through Objective and Systematic method of finding
solutions to a problem is Research.

RESEARCH OBJECTIVES
 To study the tastes, preferences, and buying behavior of consumers in case of footwear of
Bata.
 To analyze buying behavior of ladies segment of consumers.
 To recommend strategies to Nike to increase sales in ladies segment.

The main objectives of this study are:

 Working of Insurance Plans
 SWOT analysis of the product sold
 Comparative study with the competitors

RESEARCH DESIGN

TYPE OF RESEARCH: -
Descriptive research
Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables; he can only
report what has happened or what is happening.
DATA SOURCES
There are two types of data.
Source of primary data for the present study is collected through questionnaire and answered by
consumers of Nike shoes. The secondary data is collected from journals, books and through
Internet search.

PRIMARY DATA
The data that is collected first hand by someone specifically for the purpose of facilitating the
study is known as primary data. So in this research the data is collected from respondents
through questionnaire.

SECONDARY DATA
For the company information I had used secondary data like brochures, web site of the company
etc.
The Method used by me is Survey Method as the research done is Descriptive Research.

RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire.

QUESTIONNAIRE DESIGN FORMULATION

Under this method, list of questions pertaining to the survey are prepared for marketing staff of
consumers of Nike shoes.
Questionnaire has structured type questions as well as unstructured type questions. Structured
objective type questions are prepared for the respondents with fixed response categories. Some
of the questions are of multiple-choice type. The questions have more than one alternative.

Questionnaire: - A questionnaire consists of a set of questions presented to respondent for their

answers. It can be Closed Ended or Open Ended

Open Ended: - Allows respondents to answer in their own words & are difficult to Interpret and
Tabulate.

Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.

TYPES OF QUESTION INCLUDED:

DICHOTOMOUS QUESTIONS
Which has only two answers “Yes” or “No”?

MULTIPLE CHOICE QUESTIONS

Where respondent is offered more than two choices.

IMPORTANCE SCALE
A scale that rates the importance of some attribute.
RATING SCALE
A scale that rates some attribute from “highly satisfied ” to “highly unsatisfied “ and “very
inefficient” to “very efficient”

SAMPLING UNIT: -
Who is to be surveyed? The marketing researcher must define the target population that will be
sampled.

The sample Unit taken by me; General public of different age group, different gender and
different profession

EXTENT:-
Where the survey should be carried out?
I have covered entire residential area of Delhi city for the survey

TIME FRAME:-
When the survey should be conducted?
I conducted my survey for 8weeks from 10th may to 10th July

SAMPLING FRAME:-
The source from which the sample is drawn

SAMPLING TECHNIQUE: -
How should the respondent be chosen?
In the Project sampling is done on basis of Probability sampling. Among the probability
sampling design the sampling design chosen is stratified random sampling.
Because in this survey I had stratified the sample in different age group, different gender and
different profession

SAMPLE SIZE
Consumers of shoes, 50 nos

STEPS FOLLOWED IN COMPLETING THE STUDY

(i) Libraries at (a) Indian Council for Applied Economic Research (ICAER), (b) Indian Institute
of Technology, (IIT) Delhi, (c) Council of scientific and industrial Research (CSIR) (d) PHD
chamber of commerce, are visited. Management / marketing books, journals are consulted.
(ii) Internet sites containing information on Nike shoes & marketing are browsed.
(iii) Sample survey was conducted.
(iv) Data was thoroughly checked for error.

DATA PROCESSING METHODOLOGY

(i) Once the primary data have been collected, they are (I) edited – inspected, corrected and
modified.
(ii) Tabulation – bring similar data together and totaling them in meaningful categories.
Questionnaires are edited both in the field and later in home. Field editing took place just often
the interview. Generally editing is required for open type of questions. Brief notes or symbols are
frequently used during the interview to initially record the interviewer’s response since it was not
desirable to interrupt the flow with lengthy note taking. Then immediately after the interview,
brief notes are respondent. The responses are thoroughly checked in home for incorrect,
inconsequential or contradictions categories are developed only often the replies has been
reviewed. This review provided a feel for the pattern of answers and thus determine what
categories best represent the answers.

The collected data are placed into an order. Percentages of respondents answered similarly are
calculated and placed in a table. Then this is interpreted. This involved drawing conclusion from
the gathered data. Interpretation changes the new information immerging from the analysis into
information that is pertinent or relevant to the study.

CONCLUSION WAS DRAWN BASED ON THE SURVEY FINDINGS

Finally recommendation was made to improve the sales strategy of Nike shoes to increase the
sales volume in ladies segment.

SAMPLE DESIGN
THE BASIS OF SAMPLING: -
Consumers of Nike shoes are chosen randomly, so that unbiased, representative sample may be
obtained.

LIMITATIONS OF RESEARCH

The geographical area was very much limited to residential area & so the results are not
particularly reflection of the current behavior.

BIASES AND NON-COOPERATION OF THE RESPONDENTS.

The collected data are placed into an order. Percentages of respondents answered similarly are
calculated and placed in a table. Then this is interpreted. This involved drawing conclusion from
the gathered data. Interpretation changes the new information immerging from the analysis into
information that is pertinent or relevant to the study.
Due to limited time period and constrained working hours for most of the respondents, the
answers at times were vague enough to be ignored.
Most of the people in India take their Nike Shoes in the period preceding March & so the
response to initial contacts were not all encouraging and that has been the primary reason in the
inability to quantify the results large enough so as to deduce any relevant outcomes.

COMPANY PROFILE

NIKE INDUSTRIES LTD. – A COMPANY PROFILE

Nike India Ltd (BIL) is India‘s largest footwear company. Nike first established itself in India in
1931 and commenced manufacturing shoes in Batanagar in 1936. The company has its
Headquarters in Kolkata and manufactures over 33 million pairs per year in five plants located in
Batanagar (West Bengal), Faridabad (Haryana), Bangalore (Karnataka), Patna (Bihar), Hosur
(Tamil Nadu). It secures its leather supply from two tanneries in Mokamehghat (Bihar) and
Batanagar (West Bengal). It has a distribution network of over 1,500 retail stores and 27
wholesale depots provide excellent access to consumers and wholesale customers throughout
India.
As on December 31, 2006, the Canadian parent had a 51 per cent stake while institutional
holding was about 13 per cent.

RECENT DEVELOPMENTS
Nike India has said that it’s Faridabad and Mokamehghat units are being taken over by Fashion
Shoe Private Ltd and BDCL Enterprises Pvt Ltd, respectively. The company is also enabling the
buy back provision in its Articles of association to enable buy back of shares.

The assets and liabilities of both the units will be transferred to these companies and shares will
be offered in the agreed ratio to the existing shareholders of Nike India Ltd on a record date,
which will be fixed by the Calcutta High Court.

While retail sales have increased both in value and volume, wholesale sales have declined due to
restriction of supplies as a means to recover customers‘outstanding. General recession and
sluggish market conditions in the industry also have had a direct impact on lower sales and
profitability. Resistance of consumers to price rises in popular volume products as well as
discounts to clear slow-moving stocks and under utilization of production capacity adversely
affected the operational results. The lockout declared at the Peenya factory on October 1, 2007
due to serious industrial relation problems and non-compliance with the tripartite settlement has
been withdrawn. The footwear manufactured in this factory, which was shifted to the company‘s
other factories and associated manufacturers, will now be gradually produced within the factory.
The commencement of production from this factory will help in re-cooping the minimal loss
being suffered by the company from this lockout.

In Simonson’s words, “The benefits and costs of fitting individual customer preference are more
complex and less deterministic than has been assumed.” That’s because “customer preferences
are often ill-defined and susceptible to various influences, and in many cases, customers have
poor insight into their preferences.” In one of his recent papers, Simonson tackles the issue of
one-to-one marketing and mass customization. Supporters of these marketing approaches have
suggested that learning what customers want and giving them exactly what they want will create
customer loyalty and an insurmountable barrier to competition.

But Simonson has this to say: “The fact that consumer preferences are often fuzzy, unstable, and
manipulatable is unlikely to change. So, the effectiveness of methods to give customers exactly
what they (say they) want has been grossly exaggerated.” His take on the long-held assumption
that individual marketing will supplant targeted marketing is “not so fast.” In studies, he has
learned that “even when customers have well-defined preferences and receive offers that fit those
preferences, it is far from certain that the response to such offers will consistently be more
favorable than those directed at larger market segments.”

It’s all psychology. Consumers with well-defined preferences may be skeptical that a marketer
could match expectations. Those who don’t know what they want may not ever see the fit with
what the seller wants them to buy. So, individualized offers depend on customers’ preferences &;
how the offer was extended &; and on trust. “Effective individual marketing requires not only an
understanding of individual preferences and matching offers to those preferences, but also a
thorough familiarity with the various factors that impact customers’ responses,” Simonson
writes. This is a tall order, one that some companies have been able to fill, at least to some
extent. For example, Amazon keeps track of customers’ purchases and suggests other books they
might like. Dell builds computers from mass-made parts to customers’ specifications. But
Simonson argues some companies can take the concept too far, like the Custom Foot chain of
shoe stores that took detailed measurements and specifications from each customer to design
one-of-a-kind shoes. Custom Foot didn’t take into account that some customers were put off by
the individualized attention, Simonson says, and felt obligated to buy the shoes because the store
went to so much trouble. They often didn’t come back. So knowing only the customer
preferences is not enough. It is required to understand other aspects of customer behavior.
Kipping this in mind, present study will find out and analyze consumer behavior of Nike shoes
with reference to ladies segment.

FUTURE PLAN
The management says that it is not averse to outsourcing if it worked out cheaper. It is also open
to the idea of importing shoes - mostly from China - if it works out cheaper.
Nike and Reebok India Company have announced an agreement to foray into retailing
partnership for sale of Reebok and Rockport footwear in Nike outlets. The partnership entails
retailing a range of sports shoes for walking, running, tennis and training for personal fitness and
sports ranging between Rs 900-2,500.

An attractive valuation compared to its peers is the main trigger for the scrip. Besides, the
company’s aggressive focus on retailing and revamping of business (a division into shoes and
apparels) is also helping sentiment for the scrip. Plans are afoot to start selling apparel in India
made by the joint venture North Star. There’s talk that the company is planning on a voluntary
retirement scheme (VRS) to cut costs.

For the third quarter ended 30 September 2007, Nike India reduced its losses to Rs 5.68 crore
(Rs 8.51 crore) on a 9.2% increase in net profit to Rs 154.27 crore (Rs 141.26 crore). Despite
reducing its losses for the quarter, Nike India has, over the last few quarters, been continuously
recording weak performances as a result of an overall slowdown in the industry due to lower
consumer spending. Increasing domestic competition, particularly from the unorganized sector,
has also been eroding into the company’s market share.
The company is finding it difficult to maintain its market share in a highly price-sensitive Indian
market, despite having strong brand recall.

97% of the company’s revenues are from the domestic market while the remainder is from
exports. Nike India is the biggest player in the Indian shoe market.
Nike India’s major problems include its high cost of production and low emphasis on marketing.
The company may be able to address the first problem through outsourcing products. Bata’s
brand image has been restricted to that of a company that emphasizes on utilitarian products
more than trendy ones. Customers feel the company is lacking in innovation. Hence, their
preference has shifted to other local brands.

Nike India has a large marketing network with over 1,500 showrooms, 27 wholesale depots and
eight retail distribution centers across the country.

Besides, there is a network of 300 exclusive wholesalers servicing 25,000 dealers all over the
country. However, in spite of this and the license to sell other brands like Nike, Hush Puppies
and Lotto, Nike has not been able to improve sales consistently. The recent rise in sales during
the third quarter ended September 2006 can be attributed to the festive season. Recently, it also
entered into a retailing tie-up for Lee Cooper shoes.

Nike India has also been trying to focus on aggressive marketing of its product. The company
has been going through a period of transition for the past one year. With the expansion of the
retail industry in New Delhi and Mumbai, the company has recently decided to shift its
marketing operations to Delhi in order to provide value shopping for its customers. However, the
manufacturing activity and the registered office will continue at Kolkata.

Nike India has plans to invest in sophisticated machinery to retain its niche place in
manufacturing. The company has put a fresh focus to its retail business. The company has
decided to cleanse its wholesale operation by building relationships with credit-worthy buyers.

It is to the company’s credit that it has lately overhauled its marketing set-up into a four-tier
retail structure that will be stocked with products matching the area’s customer profile. A Nike
outlet in an up market place will offer a distinctly different range of footwear from another in the
suburbs.

At the top of the four-tier structure will be international stores stocking brands like Nike and
Reebok. Next will be city stores, located in up market areas and catering to middle and high-
income groups. The company has identified the brands Power, North Star, Bubble gummers,
Marie Claire and Hush Puppies for the top end of the market. Third in line will be family stores
at commercial locations displaying basic and mid-range footwear. At the bottom will be bazaar
stores that will basically aim at driving volume sales at lower price points.

The management of Nike India is taking major steps in terms of improving market penetration,
focus on stores configuration, distribution logistics, better industrial relations and overhead
rationalization. Launching of new products always remained at the center stage of the company’s
operations.

At the same time, with the opening up of the economy, more and more goods will be imported
from China. This may significantly affect Nike India’s prospects unless it manages to wean away
customers with a drastic cut in costs. Alternatively, like other Indian manufacturers, even Nike
may consider relocating its manufacturing bases in China. However, it is not that easy a task to
undertake.

Nike India, the 51% subsidiary of Toronto-based Nike Shoe Organization, remains the biggest
player in the Indian shoe market, though its share in footfalls has been decreasing over the years.

Now in a determined bid to straddle across all product and price points, Nike India has decided
to restructure its 1,300-outlet strong retail business division along specific customer segments
into Bazaar, Family, and City and Flagship stores.

Nike India has decided to appoint brand managers for each product group in a newfound
aggression to tackle dwindling sales. Each of these managers assisted by a dedicated team would
be like a brand champion responsible for procurement, production, advertisement, promotion and
re-supply.

Nike India has roped in Ogilvy & Mother for devising its festive season advertising, side-
stepping JWT, its incumbent agency. The job involves developing special communication
directed towards the festival season shoppers.

Nike India Ltd (BIL) is India’s largest footwear company selling over 60 Mn pairs per year in
India, USA, UK, Europe, Middle East and Far East. BIL has a market share of 60% in leather
products and 70% in canvas shoes.

The footwear industry in India is highly fragmented and dominated by the unorganized sector.
The industry size is around Rs 75 Bn and is growing at around 10% annually. It competes with
Indian players such as Liberty Shoes, Phoenix International, Mirza Tanners, Tatas, Action Shoes
and Lakhani Shoes and global players like Adidas, Reebok and Nike. Accessories and garments
contribute footwear sales account for more than 96% of sales while the balance. The turnover
break up is as follows –
 Products Volume (%) Value (%)
 Rubber and Canvas 50: 30
 Leather 29 :57
 Plastic 21: 9

GROWTH DRIVERS
The company has a very comprehensive distribution network which comprises its own and
franchise stores. It has 1500 showrooms, 25 wholesale depots and 8 distribution centers.

POPULAR BRANDS
Nike owns brands like Hush Puppies, Signor, Marie Claire Power, Sandak, Hawai, Naughty boy
and Ambassador. It also distributes other brands such as Nike and Lotto.
Focus on middle-class and upper class Nike will continue to focus on middle and upper class
customers. It is introducing ‘budget stores’ which will help customers to identify with the brand.
It is also increasing focus on rural thrust for volume growth in the low-priced footwear segment.

RISK AND CONCERN

Lifting of quantitative restriction on import of footwear will lead to the market being flooded by
imports. Labor issues have always bothered BIL and this resulted in disruption of manufacturing
activities on numerous occasions. Competition is hotting up in the domestic market due to
popular brands such as Gaitonde, Red Tape, Lotus Bawa and Tatas. These brands are gaining
market share especially in the premium segment and in this segment BIL has no significant
presence.

Latest Results Sales for Q3 FY2000 increased by 5.5% yoy to Rs1.7bn. profits dropped by 90%
yoy to Rs3.8 Mn due to lower operating margins and higher depreciation and interest.
Depreciation increased by 6.3% yoy to Rs 37 Mn while interest cost increased by 9.3% yoy to Rs
23.4 Mn.

Operating margins dropped by 3.3% due to increase in input cost. The Peenya plant has not
commenced operations despite lifting up of the lock out since July 3, 2007.

VALUATION
BIL’s long-term success is dependent on the how labour issue is tackled and the flexibility,
which it can adopt to meet threat of imports and competition from local footwear companies.
Long term investors with a two-year investment horizon can accumulate the stock at current
levels. It is also increasing focus on rural thrust for volume growth in the low-priced footwear
segment.

Lifting of quantitative restriction on import of footwear will lead to the market being flooded by
imports.

Labor issues have always bothered BIL and this resulted in disruption of manufacturing activities
on numerous occasions.

Competition is hotting up in the domestic market due to popular brands such as Gaitonde, Red
Tape, Lotus Bawa and Tatas. These brands are gaining market share especially in the premium
segment and in this segment BIL has no significant presence.

Sales for Q1 CY2001 decreased marginally by 0.6% yoy to Rs 1590.7 mn. There was a net loss
of Rs 30.2 mn as against a profit of Rs 39.6 mn in the corresponding period of the previous year.
The loss is due to lower operating margins and higher interest.
BIL’s long-term success is dependent on the labor issue and the flexibility, which it can adopt to
meet threat of imports and competition from local footwear companies. Long term investors with
a two-year investment horizon can accumulate the stock at current levels.

FINANCIAL HIGHLIGHTS
(In Rs Million) 200012 (12) 199912 (12) 199812 (12) Q1200103
Q1200003
Sales 7,315.70 7,103.90 6,353.20 1590.7 1600.9
% Growth 2.98 11.82 (0.6)

Net Profit 304.60 242.60 166.30 (30.2) 39.6

% Growth 25.56 45.88 (176)
EPS(Rs) 5.90 4.70 3.20 3.08
% Growth 25.53 46.88

Ratios 200012 (12) 199912 (12) 199812 (12) Q300009 Q399909

OPM(%) 9.77 9.08 7.16 1.09 6.9
NPM(%) 4.16 3.42 2.62 2.5
ROE(%) 8.95 7.44 5.31
Nike understated 9 month losses -
Brief Financials (in Rs. Mn.)Detailed Quarterly
Period ending (months)30-Sep-2007 (9)31-Dec-2006
(12)31-Dec-2006 (12)
Net sales 4980.206461.177172.91
Other Income42.1063.6165.21
Total Income5022.306524.777238.12
Cost of goods sold4974.706471.797051.76
OPBDIT47.6052.98186.36
PAT-117.20-74.1039.80
Gross Block-2191.072062.26
Equity capital-514.22514.22
EPS (Rs.)--1.440.77
DPS (Rs.)-0.000.75
BV (Rs.)-37.2738.71
P/E range (x)-0.0 - 0.00.0 - 0.0
Debt / Equity (x)-0.320.26
Operating margin (% of OI) 0.90.82.6
Net margin (% of OI)-2.3-1.10.5
As on 30 June 2007, the public, institutions and foreign bodies held
31.23%, 13.91% and 0.16% stake in the company, respectively

LITERATURE REVIEW
The study of consumer behavior has evolved since the Information Processing Model (Bettman,
1979) assumed that the individual is logical in his/her buying process. This model was criticized
because it failed to treat different consumption phenomena motivated by symbolic meanings
(Holbrook and Hirschman, 1982). Individuals are not always looking for efficiency and
economy, but also for distraction, aesthetic, expression, etc. (Boyd and Levy, 1963). Calling for
a broadening of theoretical frameworks of consumer behavior, many authors pleaded in favor of
the study of all consumption forms (Holbrook, 1986), being inspired by European semi logy and
American semiotic (Levy, 1959, 1963, 1981; Hirschman, 1980; Kehret-Ward, Johnson and
Louie, 1985; Mick, 1986; Holbrook, 1986; O’Shaughnessy and Holbrook, 1988; Nöth, 1988;
Stern, 1988; Grafton-Small and Linstead, 1989). These are the study of signs, meanings and
production of symbols. Fantasy, emotion and pleasant aspects of consumption were then tackled
from an experiential point of view. The Experiential View is a phenomenological perspective
that perceives consumption as a primary state of consciousness having a variety of symbolic
meanings, responses and hedonist criteria (Holbrook and Hirschman, 1982; Olshavsky and
Granbois, 1979). The basis of the traditional Information Processing Model is the optimization of
the utility of a product under the basis of a utilitarian evaluation of its tangible characteristics.
Nevertheless, it neglects emotional aspects. On the other hand, the Experiential View leaves out
different factors such as economic conditions, expectations, some elements of the marketing mix
(price, distribution), perceived risk and conflicts, but mostly the social influence of the
consumers’ reference groups (Holbrook and Hirschman, 1982; Business Central Europe, 1994)
which is the aim of the Symbolic Interactionism Perspective. Acquisition, possession and
consumption are activities taking place in a process of impressions creation or identity
management which is, according to Belk (1978), an interactive process concerning both the
image of goods consumed and that of the individuals consuming them. The Symbolic
Interactionism Perspective deals with the relationship between consumers and the products they
consume, and suggests that a significant proportion of consumption behaviors consist of social
behaviors, and vice versa (Solomon, 1983). This leads us to consider the importance of
socialization processes (family, reference groups) through which individuals learn the meanings
of symbols and those of consumption. With the aforementioned meanings being negotiated and
built through interactions with others, consumption is not only an individual activity, but also a
social process of goods definition (Gallant and Kleinman, 1983). Since individuals are often
motivated to acquire products according to what they mean to them and to members of their
social reference groups (Leigh and Gabel, 1992), their behavior is subject to the pressures of
cultural norms and the expectations of socialization institutions rules such as those coming from
family and other reference groups (Faber, O’Guinn and McCarthy, 1987; Engel, Blackwell and
Miniard, 1993). Thus, Symbolic Interactionism Perspective considers the human spirit as
fundamentally social, and dependent on shared symbols. The symbols being generated at a
global level (Geertz, 1973; Solomon, 1983; McCracken, 1986, 1988; Leigh and Gabel, 1992),
the Symbolic Interactionism Perspective accepts as precept the fact that society and its culture
precede every individual action, and that a cultural consensus results from interactions,
communication, and negotiation between social actors (Charon, 1989).

If, at a conceptual level, the consumption good becomes an instrument of communication, at an

operational level, image variables may be regarded as the intangible attributes of the product that
carry cultural and social meanings. According to Erickson, Johansson and Chao (1984), an image
variable is defined as “some aspect of the product that is distinct from its physical characteristics
but that is nevertheless identified with the product”. The image variables emerge from four
cognitive representations individuals have of their environment: the symbolism of advertising,
the celebrity endorsement, the brand, and the country of origin of the product.

The made-in is considered by Dichter (1962) as the fifth element of the marketing mix, and is
defined as the country where are located the corporate headquarters of the organization doing the
marketing of the product or the brand (Johansson, Douglas and Nonaka, 1985). The country of
origin carries a rhetoric that influences consumers’ preconceptions towards the products of a
country. Its meaning can be conceived as an indication serving as a basis of evaluation (Bilkey
and Nes, 1982), when one considers a product as a bundle of information. Consequently,
according to Kaynak and Cavusgil (1983), the images of a foreign country that are formed by
consumers are made of cognitive, affective and behavioral components. The first one represents
the perceived characteristics of the country. The second one concerns the appreciation or not of
those characteristics, and the third one corresponds to the actions about the country that the
consumer feels are appropriate. A tendency to evaluate positively the local production compared
to imported production, and biases in favor of industrialized countries have been found in
previous studies (Bilkey and Nes, 1982; Cordell, 1992). This does not mean the consumer will
not buy the product, but rather that he is not inclined to do so (Schooler, 1971). “When entering
foreign markets, sellers often face quotas, tariffs, and non-tariff barriers. In addition, they may
face an intangible barrier in the form of consumer bias on the basis of product origin” (Schooler,
1971).

The informational value of the country of origin was also found to vary according to the level of
involvement of the consumer in purchasing the product and the presence of other cues such as
brand name, guarantee and price (Ahmed and d’Astous, 1993). In a recently published meta-
analysis of country-of-origin effects, Peterson and Jolibert (1995) conclude that the average
effect size is lower (0.19) for purchase intention, higher (0.30) for quality/reliability perceptions
and context dependent. More specifically, they found that the characteristics of the study
(research design, type of respondents, study cues, sample size, stimulus context etc.) influence
the relative effect of country-of-origin to a lesser degree for quality/reliability perceptions than
for purchase intention. However, the type of respondents (students, consumers or
businesspeople) had no influence on quality/reliability perceptions.

Stanford GSB marketing professor Itamar Simonson and Ran Kivetz, an assistant professor at
Columbia University, asked a group of 195 Columbia students to do; eat a lot of
sushi.Participants were offered a "frequent diner" program that would reward them for their
patronage at various university dining locations and given a card that would track their
purchases. They were randomly assigned to one of two groups those in the "low" requirement
group were told they would have to purchase 12 sandwiches to get two free movie tickets,
whereas those in the "high" requirement group were told they would have to purchase 12
sandwiches and 12 orders of sushi to get two free movie tickets. So, the second group had to do
much more to receive the same reward. Kivetz and Simonson also asked participants how much
they liked sushi relative to the typical student. The result? Students who liked sushi were much
more likely to join the "frequent diner" program that required them to purchase both 12
sandwiches and 12 orders of sushi. "It shows a common mistake that consumers make & if they
see an offer that seems to fit them better than other consumers, for example, a program that
requires sushi-lovers to eat sushi that fit completely colors their assessment of how attractive the
offer is," Simonson says. "As a result, by creating what appears like personal fit, marketers can
attract consumers to frequency programs and many other promotional offers." Kivetz and
Simonson replicated these findings regarding influences on participation in frequency, or loyalty,
programs in studies with travelers interviewed at domestic airports.The sushi study is among a
number of studies Simonson has been conducting since the late 1980s about how consumers
make choices. Much of his work debunks the accepted theory that giving consumers what they
want and making a profit are the most basic principles of marketing.

The theme that pervades Simonson's work is that customers may not know what they want and
second-guessing them can be expensive. In his words, “The benefits and costs of fitting
individual customer preference are more complex and less deterministic than has been assumed."
That's because, Simonson says, "customer preferences are often ill-defined and susceptible to
various influences, and in many cases, customers have poor insight into their preferences."
In another recent paper, Simonson tackles the issue of one-to-one marketing and mass
customization. Supporters of these marketing approaches have suggested that learning what
customers want and giving them exactly what they want will create customer loyalty and an
insurmountable barrier to competition. In an example taken to the extreme in the 2007 movie
Minority Report, Tom Cruise's character Anderson runs through a shopping mall past talking
billboards that recognize him by name and urge him to buy products he has expressed interest in
such as jeans and Ray-Bans; the ultimate in personalized advertising. But Simonson has this to
say: "The fact that consumer preferences are often fuzzy, unstable, and manipulatable is unlikely
to change. So, the effectiveness of methods to give customers exactly what they (say they) want
has been grossly exaggerated." His take on the long-held assumption that individual marketing
will supplant targeted marketing is "not so fast." That's because consumers are very difficult to
figure out, science fiction and technology notwithstanding. "Furthermore, even when customers
have well-defined preferences and receive offers that fit those preferences, it is far from certain
that the response to such offers will consistently be more favorable than those directed at larger
market segments."

It's all psychology. Consumers with well-defined preferences may be skeptical that a marketer
could match expectations. Those who don't know what they want may not ever see the fit with
what the seller wants them to buy. So, individualized offers depend on customers' preferences;
how the offer was extended & and on trust. "Effective individual marketing requires not only an
understanding of individual preferences and matching offers to those preferences, but also a
thorough familiarity with the various factors that impact customers' responses," he writes.

This is a tall order, one that some companies have been able to fill at least to some extent. For
example, Amazon keeps track of customers’ purchases and suggests other books they might like.
Dell builds computers from mass-made parts to customers' specifications. But Simonson argues
some companies can take the concept too far, like the Custom Foot chain of shoe stores that took
detailed measurements and specifications from each customer to design one-of-a-kind shoes.
Simonson argues that Custom Foot didn't take into account that some customers were put off by
the individualized attention and felt obligated to buy the shoes because the store went to so much
trouble. They often didn't come back. Indeed, an Internet search produces no Website.

Simonson, who has received many prestigious awards for his research on consumer behavior and
marketing, teaches MBA and Ph.D. marketing and consumer decision-making courses. The
loyalty program article is slated for publication in the Journal of Marketing Research this year.
Online customization gives consumers the opportunity to choose characteristics they want in a
product when they shop for it online. Many companies are looking at online customization as the
future of online business Janis Crow, Kansas State University marketing instructor, researched
how people make choices on the Internet. She recently studied consumers in an online
environment and their ability to customize several products - pizza, shoes, and electronic
devices.

Crow said that her study posed two questions for respondents: first, how difficult is it to
customize a product, and secondly, how likely is the person to purchase the product he or she has
customized?
All participants in the study chose to customize products. In terms of customers’ likelihood to
purchase, a greater number of customers made purchase decisions when there are more options
to choose, she said. However, it was slightly more difficult when more features were offered.

She created a website where people could customize products to their individual preferences and
needs. Crow selected three generic products: pizza, shoes, and a Personal Digital Assistant
(PDA). Thirty-one college students took part in the study.

"Students could customize the three products, and I provided a drop-down box on the site with
attributes to choose from," she explained. Consumers could click on a drop-down box to
customize a product they would want to purchase, she said. She found that more people relied on
the default choices rather than selecting other choices that were offered. She said, some research
suggests that many people do not want to put a lot of effort into purchase decisions. "A lot of
times, people may not have preferences already in mind," she said. When consumers have the
chance to create preferences, the question is whether they rely on previous preferences or if they
develop new ones, she said. In the future, Crow says she will be studying strategies that
consumers go through during purchase decisions. "I will be studying decision processes to
develop computer aids that could help the consumer reach their purchase decision," she said.

Although her current project involves analyzing the consumer behavior of college students in an
online environment, in future projects she plans to analyze other demographic groups.”
Customization will be a key business opportunity in the future for businesses online or in more
typical shopping environments," Crow said.

She hopes her research will help consumers in making purchase decisions and help businesses
determine products to offer and how to offer them.

Hong Kong companies, including leather consumer goods suppliers, have shown a growing
interest in tapping the mainland consumer market after China's accession to the World Trade
Organization and gradual opening of its domestic market. For Hong Kong companies targeting
this vast market, a good understanding of the behavior of mainland consumers is necessary in
order to formulate an effective and suitable market strategy.

In view of this, the HKTDC conducted a survey study in four major mainland cities in February
2007. The study was composed of two interlocking surveys. The first survey (survey on
shoppers) successfully interviewed a total of 1,000 shoppers of leather consumer goods in four
major cities, namely Beijing (BJ), Chengdu (CD), Guangzhou (GZ) and Shanghai (SH). The
second survey (survey on retailers) interviewed managers/officers-in-charge of major department
stores in these four cities.

The survey study analyses leather consumer goods in terms of consumer behavior, the
competitiveness of Hong Kong brands and the consumer segments with the greatest biggest
spending power. The main survey findings are as follows:
CONSUMER BEHAVIOR
Shopping locations, Department stores were the most preferred type of retailers, followed by
outlets in shopping malls and chain stores. Product variety, guaranteed quality, brand choice,
price, services and store environment were cited as the major reasons for visiting a leather
consumer goods store.

SHOPPING TIME
Thirty-eight percent of respondents visited leather consumer goods shops at least once a month.

Shopping during weekends is common. Other popular shopping occasions include National Day
(1st October), Chinese New Year (January/February), New Year's Day (January) and Labour
Day (1st May).

MARKETING CHANNELS
Promotional activities in shopping malls and department stores are the most popular promotional
and sales activities, followed by discount/price reduction, TV commercials, discount coupons,
promotional stands, exhibitions, buy-one- (or more) gets-one-free.

PURCHASING POWER
On average, respondents owned 4.2 pairs of shoes, 1.2 pieces of wallets, 1.3 pieces of belts and
1.3 pieces of handbags/briefcases. Over the past 12 months, an average respondent's spending on
leather consumer goods was as follows:
- Shoes: RMB 597 (total) RMB 328 (per pair)
- Wallet: RMB 226 (total) and RMB 193 (per piece)
- Belt: RMB 220 (total) and RMB 194 (per piece)
- Handbag/briefcase: RMB 476 (total) and RMB 359 (per piece)

SELECTION CRITERIA
When choosing leather consumer goods, product quality stood out as the principal consideration
for respondents, followed by product material, craftsmanship, style/design, price and brand.

POPULAR BRANDS
Most respondents considered brands important.

4PS OF NIKE

Nike’s 4Ps comprised of the following approaches to pricing, distribution, advertising and
promotion, and customer service:

Pricing: Nike’s 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. (Past 17 years: Air Jordan basketball
shoes). 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
 Nike Triax Armored II Analog Super Watch
 Nike Women's Imara Fit Digital 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.

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.

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.

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 behavior of the above mentioned categories of
consumer, which shows that our consumer is well educated and is very well informed about the
product.

2. Consumer’s 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.

SHOPPING SEASON
ANALYSIS:
Amongst the student and the professional it was found the consumer buying BEHAVIOR 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 traveling or on special occasion’s.

BRAND RECOLLECTION:

ANALYSIS:
When asked about reconciling a sports shoes brand about 70% of the respondent 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.

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.
(B) COMPARISON WITH OTHER BRANDS
ANALYSIS:
In response to the question about giving, out of 100 point to the various factors affecting their
buying BEHAVIOR between NIKE and OTHER’S following was observed:
OTHERS NIKE
a. Style ____20____ ___30_____
b. Price ____10____ ___10_____
c. Comfort _____30___ ___30_____
d. Brand ____10____ ___20_____
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 while choosing a competitive brand.

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 favorite
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.

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.

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.

3. Do you ask for a specific brand by name?

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

4. Which brand do you generally use?

People in India prefer Nike the most as we can see that 24% % people prefer Nike sports wear.
Then comes Adidas and Reebok.

5. 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 Adidas’s ad, then with Reebok and then Nike. The most
un-influential is that of action.

6. What according to you is the relative importance of the following?

V. Imp Imp. Not so Imp. Doesn’t 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.

7. What features of Nike do you like the most?

The most liked feature of Nike is the light weight shoe. Then it is the enhanced toe support. From
here we can infer that most important aspect for the consumers is the comfort they get from the
shoes.

8. What range you prefer?

Larger number of people goes in for shoes that come under the range of Rs. 1500-3500. A s we
know that Nike is a premium brand 27% of the buy shoes that falls under the range of Rs. 3500-
7500 and lesser no. of people buy shoes ranging in between 3500 and 5500.
9. How often you buy Nike?

62% of the consumers buy Nike only once a year. Here we notice one thing that some don’t buy
Nike.

10. 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.

11. 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
don’t agree with it.
12. 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 don’t have any idea of
this.

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 to develop 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 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 Bata’s Power and Liberty would be ahead of Nike in terms of
popularity. We also notice 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 Nike’s 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 company’s primary objective is quite clear.

Nike’s 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, Nike’s 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 Nike’s 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.

Nike’s 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 Nike’s
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 Nike’s products to stand out from the rest. The company’s focus also allows it to maintain
a somewhat narrow niche that enables it to effectively capture the needs and wants of the
consumers. An example of Nike’s superior and innovative technology is its new range of shoes
called “Air Presto”. Termed as the first T-shirt for the feet, these shoes can take the shape and
size of the wearer’s feet. Unlike regular shoes it comes are sizes like XL, L, M, S and XS. Each
of these sizes can accommodate three conventional foot sizes. Nike will continue to produce
such path-breaking products in the future and stay a step ahead of its competitors.

Nike will also focus on making a strong effort in price leadership. Nike’s 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 six-month warranty. If the shoe is found to be
defective or wears out within six months due to no fault of the wearer, Nike replaces the product.
This is only the first step and more needs to be dome 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 customer’s time. Surveys have indicated that normally people don’t 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 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 INCLUDE

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.

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 colors, 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.

Double Click 2006 Consumer Email Study October 2006, the fourth of Double-Click annual
consumer email studies points to an increasing sophistication in consumer usage of email
functionality and a corresponding complexity of purchasing behavior. The Spam crisis continues
to affect consumer behavior online but does not necessarily cloud consumer receptiveness to
legitimate marketers: an overwhelming majority of online consumers receive offers by email and
have made a purchase online or offline as a result. Consumers are using available tools to limit
spam and are employing operate email accounts for purchasing, all in attempts to increase
control and improve their email experience. Working with Beyond Interactive and the NFO//net
source panel of 900,000 US consumers, polled 1,000consumers via email from July 30 -
August5, 2007. All respondents recruited use email/internet 1+ times per week, which reflects
the usage of the larger online population (94% of the 18+ online population according to Nielsen,
2006).There was an equal segmentation of men and women and the average age was 42.7.This is
the fourth of an annual series of consumer research studies and trending information was derived
using the data from previous years. The sample mirrored previous studies and is reflective of the
online population as a whole.
Key Findings The majority of consumers receive some kind of marketing email with special
offers from retailers most common Sender recognition most impacts operates, while content
relevance increases likeliness to purchase Frequency ascertain category, are very specific to the
category of email but vary greatly from one consumer to the next; frequency of permission based
email is clearly a great concern to consumers and has an impact on what they consider to be
Spam. Email drives multi-channel purchases and has an immediate as well as a latent Nearly
64% of consumers cite the line as the most important factor in opening an email.2006 Consumer
Email Study impact. It drives consumers most often to the online channel but also results in retail
and catalog sales. Consumers have become sophisticated in their use of ISP-supplied tools to
limits Pam and in their usage of various email addresses to manage their varied email activities
Home and free email addresses are most often used for purchasing, within email address
specifically designated for that usage. Men and women have radically different ideas of what
spam is and different purchasing behavior related to Spam. Women are more receptive to
promotions and discounts and correspondingly more interested in and tolerant of marketing
emails than men. Receptiveness to Marketer Emails. The vast majority (91%) of consumers
receive some form of permission-based email with 57.2% receiving special offers from online
merchants, 55.4% receiving them from traditional retailers, and 48.5%receiving them from
catalogers. Other popular types of marketing emails included account statements/online bill
payment information (received by 49.8% of respondents), travel emails (43.3%), coupons for
groceries (40.0%), health (41.1%) and household tips/recipes/crafts (42.1%). Of categories in
which consumers do not currently receive e-mails, respondents are most interested in receiving
grocery coupons (cited by 22.1%) and household tips/recipes/crafts (13.6%).Other categories of
strong interest were electronics and computer software/hardware, 13.8% and apparel/shoes
at12.3%. Permission-based email also continues to be the preferred method of contact from the
favorite retailer regarding new products, services or promotions (preferred by 59% of
consumers), while only 32.1% preferred direct mail. Sender Recognition, Content Relevance
Most Impacts Purchasing consideration behavior, the line continues to be the most compelling
reason to open permission-based email, cited by 63.3% of all respondents, an increase from
59.9% in2005. This speaks to the growing significance of user recognition of sender and the
power of brands — even more important in an era of spam. Of all types of subject lines,
discount offers are the primary motivational factor for opening permission based email
(increased to59.5% of all respondents from 56.7% in 2007), while compelling news and
information fell from 57.6% of all respondents to 48.6% in 2006.Special offers from
retailers/catalogers received by at least 50% of respondents

When asked what most compelled them to take action on a permission-based email, product I
needed at the time, a reflection of the relevancy of the offer, was noted by37.8% of all
respondents, outranking the next most common choice, special offer or discount, cited by 35.0%
of respondents. Likeliness to respond could be increased if an email contains relevant
information (noted by 67.3% of respondents) and contains information based on interests
specified to that company. Consumers found recommendations based on past purchasing
behavior less appealing (noted by only 28.1% of all respondents).Consumers clearly want a
degree of control over what marketers send them and would like their specified interests taken
into account. Consumers are also very specific in their frequency preferences, with news and
weather most often preferred daily, special offers from retailers, online merchants and catalogers
most often preferred weekly, and account statements/bill payment communications monthly.
However, there’re significant numbers of consumers who vary in these preferences, with just
over20% of those who receive special offers and discounts from retailers, online merchants and
catalogers preferring the communications to come monthly. In accordance with specified
frequency statements, when asked what concerned them about their inboxes, frequency of
permission-based email was second only to Spam, cited by 42% of respondents. This danger is
even more pronounced considering only 28% noted frequency of permission-based email as a
concern in2006. Clearly marketers need to test for optimal frequency and solicit customer
preferences. Email Drives Multi-Channel Purchases But at the Expense of Offline Retail
Permission-based emails clearly drives purchases. Sixty-seven percent of respondents received
an email offer from a Consumers take action on emails corresponding to product need Relevant
content, information specified by user increases likeliness to respond 2007 Consumer Email
Study, Cataloger or online merchant that resulted in a purchase. Top purchasing categories were:
apparel/shoes at 83.4%making a purchase, computer software/hardware at 81.4%, gifts/flower
sat 77.6%, travel at 77.2%, electronics at77.1% and food at 71.7%. The only under performing
category was financial products and services at 41.5%, which could relate to the high
consideration necessary for these products, the incidence of spam in this category or lack of
interest due to the economy. The channel purchased in as a result of permission-based email is
highly specific to the category of product: travel had the highest incidence of online purchase
at70% with only 13% purchasing by catalog/phone/mail, while apparel/shoes had a relatively
high incidence of online purchase, 58% with 41% purchasing via offline retail and 23% via
catalog, and over the counter and prescription drugs had equal levels of online and retail
purchase at 32%.Email marketing promotes use of the online channel. In comparing the typical
channel purchase behavior of respondents in a variety of categories to where they were most
likely to purchase after receiving permission based email, the results show that respondents are
more likely than usual to use the online channel for purchasing after receiving a permission
based email; this is true in all categories except financial services. In apparel/shoes, where 31%
would typically buy online, a permission-based email resulted in an increase of online channel
usage to 58%, gifts/flowers saw online channel lift from 45%to 61%, and electronics from 45%
to 60%.For consumers who receive email offers from retailers in the apparel/shoes category,
email marketing does increase use of the catalog channel. Of those who receive emails from
catalogers, 16% reported that they typically bought via catalogs. This number rose to 23% saying
they had purchased though a catalog after receiving permission based email. This example
illustrates the direct connection between catalog drops with effectively sequenced email
marketing used as a purchase driver. The Latent Impact of Email Marketing Most action taken in
response to email marketing does not result immediately from the click. While 27% clicked
through and made a purchase during that same online session, an even greater number, 33.6%,
clicked through to find out more information, then purchased online at a later date. An additional
12.2% clicked through to find more information and then purchase offline through catalog or
retail. Permission-based offers generate sales.

As was demonstrated by the great interesting discounts and special offers, email usage for
composing is on the rise and as offline thus latent impact as well. Seventy two percent of
respondents reported having used coupons or offer codes (an increase of 57% over the 46%who
reported using them in 2007). Fifty-eight percent of respondents used the coupon or offer code at
an offline store. All of this latent activity resulting from email marketing demands that marketers
increase their own cross-channel sophistication in data capture: unless they’re measuring both
online and offline purchase activity, immediate and latent impact, they are not capturing the full
effect of their email performance. Consumers Become More Selective in their Practices,
Increasingly Use Tools to Limit SPAME mail volume as reported by consumers was up but not
markedly so (264 emails per week vs. 254 in 2007). Spam remained the number-one concern
about their email box, noted by 89% of respondents (consistent with last year).The percent of
email received that was Spam 56% was also consistent with2007. What have changed are their
opening practices: Only 27% opened 90% of their permission based email, while about a third
(30%) did so in 2007. In regards to what they are most likely to do with Spam, an increasing
number are deleting without reading (65% as compared to60% in 2007) and only 4% are reading
to determine whether it is of interest (as compared to 5% in 2007 and 18% in2006). The
likeliness of unsubscribe has declined markedly (from 33% in2006 to 24% in 2007).

Perhaps consumers have gotten fed up or decided the activity was futile. When asked what
specifically they were doing to eliminate or limit spam, a vocal minority, 36.1% reported using a
Spam function of their email program, 15.9%downloaded spam filtering software and13.7%
created a secondary email addressor making online purchases. A key finding of the 2005 study
had been the usage of on average 2.6 email addresses per respondent. This year, respondents
have clearly become tired of the complexity of managing those accounts: this year, only 34%
reported having more than two addresses while44% reported having that many in
2007.Respondents seem to be consolidating, with an average number of accounts at2.3 in
2007.Latent impact: nearly 46% purchase online or offline some time after clicking through an
email With more than one in-box, what do consumers consider the primary address? Perhaps in
relation to the amount of job instability and the desire of having a more permanent address, the
home address was considered the primary one. Of those with multiple addresses, 74% had a
specific email address that they used for online purchasing, with either the home address (cited
by 48.3%) and a free address (cited by 39.7%) as this purchasing address. Retail-oriented email
marketers clearly need to make special efforts at improving deliverability among the major home
ISPs and free email providers as this clearly will impact overall performance. Mars & Venus:
Men Really Are Different from Women in Respect to Email Marketing Two very specific areas
stand out in how men vs. women react to email marketing: men have a much broader definition
of Spam, while women are much more likely to be active purchasers as a result of permission-
based email. More men than women consider spam to fall into these very broad definitions: 65%
cited an email from a company that I have done business with but comes too often while only
56% of women did so, 61% of men cited an email that may have been permission based but
comes too frequently while only 55% of women did so and 36% cited any email that tries to sell
me a product or service while 32% of women did so. Correspondingly, women are more
sensitive to emails of offensive subject matter (94% women vs. 91% men) .Active purchasers,
those who purchased in multiple product categories or from various types of companies (multi-
channel shoppers) after receiving an email, are more likely to be women than men. Aloof these
data points add up to online behavior that mirrors offline.

Women remain the primary household purchasers, 2007 Consumer Email Study Respondents
with multiple accounts likely to use a free one for online purchases Women more likely to be
active purchasers, multi-channel purchasers.

The fourth of Double-Click annual consumer email studies points to an increasing sophistication
in consumer usage of email functionality and a corresponding complexity of purchasing
behavior. The Spam crisis continues to affect consumer behavior online but does not necessarily
cloud consumer receptiveness to legitimate marketers: an overwhelming majority of online
consumers receive offers by email and have made a purchase online or offline as a result.
Consumers are using available tools to limit spam and are employing separate email accounts for
purchasing, all in attempts to increase control and improve their email experience.
Objectives/Methodology Double-Click, working with Beyond Interactive and the NFO//net
source panel of 900,000 US consumers, polled 1,000consumers via email from July 30 -
August5, 2007. All respondents recruited use email/internet 1+ times per week, which reflects
the usage of the larger online population (94% of the 18+ online population according to Nielsen,
2007).There was an equal segmentation of men and women and the average age was 42.7.This is
the fourth of an annual series of consumer research studies and trending information was derived
using the data from previous years. The sample mirrored previous studies and is reflective of the
online population as a whole. Key Findings The majority of consumers receive some kind of
marketing email with special offers from retailers, online merchants and catalogers most
common Two to one consumers prefer to be contacted by their favorite retailer regarding new
products, services or promotions via email rather than direct mail. Sender recognition most
impacts operates, while content relevance increases likeliness to purchase Frequency
preferences, or how often respondents prefer to receive emails of ascertain category, are very
specific to the category of email but vary greatly from one Consumers prefer to be contacted by
their favorite retailer via email.

ANNEXURE

QUESTIONNAIRE

1 I buy my own shoes

 Very frequently
 frequently
 sometimes
 never

2 I find buying shoes a pleasurable event.

 Very frequently
 frequently
 sometimes
 never

3. I buy costly shoes

 Very frequently
 frequently
 sometimes
 never

4 for purchasing shoes, I can travel long distance

 Very frequently
 frequently
 sometimes
 never

5 I buy shoes which are liked by my family

 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree
6 I buy shoes which are advertised attractitively
 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

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

8 I like to buy shoes which are imported from Paris or Italy.
 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

9. I like to buy shoes which are designed in Paris or Italy.

10. I like to buy shoes which are very stylish & of latest design.
 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

11. I like to buy shoes which are less expensive but very stylish & of latest design.
 Strongly agree 30.00
 Agree 50.00
 Indifferent 14.00
 Disagree 4.00
 Strongly disagree 2.00
12. I Like to buy shoes which are not very stylish but comfortable (%.of Respondents)
 Strongly agree 10.00
 Agree 30.00
 Indifferent 18.00
 Disagree 32.00
 Strongly disagree 10.00

13. I Like to buy shoes which are not stylish but comfortable and long lasting
 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

14 I Like to buy shoes which are expensive & stylish but comfortable strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

15 I like to buy Nike shoes which are expensive & stylish but comfortable
 Strongly agree 8.00
 Agree 24.00
 Indifferent 4.00
 Disagree 2.00
 Strongly disagree 2.00

16 I like to buy Nike shoes which are not very stylish but comfortable
 Strongly agree 12.00
 Agree 16.00
 Indifferent 2.00
 Disagree 8.00
 Strongly disagree 2.00

17 I like to buy Nikeshoes which are not stylish but comfortable and long lasting
 Strongly agree 8.00
 Agree 16.00
 Indifferent 2.00
 Disagree 12.00
 Strongly disagree 2.00

18 I like to buy Nikeshoes which are not very stylish but comfortable
 Strongly agree 14.00
 Agree 16.00
 Indifferent
 Disagree
 Strongly disagree

19 I like to buy Nikeshoes which are less expensive but very stylish & of latest design.
 Strongly agree 4.00
 Agree 10.00
 Indifferent 4.00
 Disagree 14.00
 Strongly disagree 4.00

20 I like to buy Nikeshoes which are very stylish & of latest design.
 Strongly agree 2.00
 Agree 6.00
 Indifferent 8.00
 Disagree 22.00
 Strongly disagree 2.00
21 I like to buy Tailor made shoes which are very stylish & of latest design.
 Strongly agree 10.00
 Agree 38.00
 Indifferent 24.00
 Disagree 16.00
 Strongly disagree 12.00

22 I will certainly buy shoes if high quality matching imitation jewelry given free.
 Strongly agree 36.00
 Agree 56.00
 Indifferent 4.00
 Disagree 4.00
 Strongly disagree 0.00

23 I will certainly buy shoes if high quality imported scent given free.
 Strongly agree 38.00
 Agree 60.00
 Indifferent 2.00
 Disagree 2.00
 Strongly disagree 0.00

24 My expectation is fulfilled by my shoe supplier.

 Strongly agree 6.00
 Agree 24.00
 Indifferent 42.00
 Disagree 8.00
 Strongly disagree 0.00
 25 Shoe companies should survey customer preferences.
 Strongly agree 24.00
 Agree 56.00
 Indifferent 16.00
 Disagree 2.00
 Strongly disagree 2.00

26 Shoe companies should suggest shoe design using celebrity.

 Strongly agree 32.00
 Agree 52.00
 Indifferent 14.00
 Disagree 2.00
 Strongly disagree 0.00

27 I know exactly what I want in my shoes.

 Strongly agree 8.00
 Agree 26.00
 Indifferent 24.00
 Disagree 22.00
 Strongly disagree 20.00

28 I don’t want to spend too much time on deciding my shoes.

 Strongly agree 28.00
 Agree 58.00
 Indifferent 8.00
 Disagree 6.00
 Strongly disagree 0.00
29 Stores display is the best form of advertisement
 Strongly agree 24.00
 Agree 48.00
 Indifferent 10.00
 Disagree 4.00
 Strongly disagree 0.00

30 T.V advertisement is the best form of advertisement

 Strongly agree 16.00
 Agree 52.00
 Indifferent 4.00
 Disagree 16.00
 Strongly disagree 12.00

31 Buying customized shoe by internet is very attractive.

 Strongly agree 24.00
 Agree 52.00
 Indifferent 4.00
 Disagree 16.00
 Strongly disagree 4.00

32 Buying customized shoe by internet is very attractive. But no spam mail.

 Strongly agree 16.00
 Agree 28.00
 Indifferent 2.00
 Disagree 10.00
 Strongly disagree 44.00

BIBLIOGRAPHY
BOOKS

Marketing Management - Philip Kotler

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

WEBSITES

Nikebiz : NIKE, Inc. Official Site, the world?s largest, leading athletic brand[/url]
Nike town:
Business.com: - The Business Search Engine and Business Directory for Business
Information[/url]
Apna Bangalore: ]Apnabangalore.com [Home][/url]
Indiainfoline: Indiainfoline.com-Comprehensive information on stock market, equity,
derivatives, companies, Commodities,Forex, Global markets, Mutual fund, IPO,Personal
Finance, insurance, Loans, Credit cards,money,debt,mortgages,economy,sector[/url]
Nike’s online store for India: [

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