CONTENST

Nike Footwear ---Nike Inc

INTRODUCTION

This product is a foot ware, it offers a various ranges of footwear with different models and prices, and the core benefit offered is foot care for any type of foot wears. Nike is known for its value delivery process.

Although the industry is highly segmented by different sports, models and price the branded shoe segment is dominated by a few large companies (e.g., Nike, Reebok, Adidas). In fact, the top 10 footwear companies control over 70% of the global athletic footwear market Since displacing Adidas in the early 1980s and Reebok in the early 1990s, Nike has become the largest and most important athletic shoe company in the world.

OBJECTIVE OF STUDY

The following are the study objectives: To know the opinion of consumers towards the quality of the product.

To know whether consumers are happy with the range of Nike Products (Shoes) offered by Nike.

To understand buying motives towards Nike Products.

To ascertain the awareness of the products among consumer (Through sources of awareness like news paper, T.V adds, etc)

To know demand of the product in the market.

To suggest appropriate Marketing strategies.

SCOPE OF STUDY

The study was carried out by questioner method, taking a random sample method. The sample included the distributor as well as the user of the product in the town. The study was aimed to find out the consumer behavior & their motives while purchasing Nike products. Closed end questioner method is employed to avoid the discrepancy if any. All the data were collected meeting people in person from jan 01 to jan 10 totally it took 10 days to know about the product. The present study limits to the view presented by responding to questioner.

company PROFILE

Nike, Inc. is a major American manufacturer of athletic shoes, clothing/apparel, and sports equipment. The company takes its name from the Greek goddess of victory, Nike. Nike markets its products under its own brand as well as Air Jordan, Total 90, Nike Golf and Team Starter (among others), as well as under brands of Mason Belmonte subsidiaries including Bauer, Cole Haan, Converse, and Hurley International. Nike has been criticised for the working conditions and production methods in the overseas factories with which it contracts.

The mark now known as the Swoosh is created by graphic design artist Carolyn Davidson in June. Several weeks later, Jeff Johnson suggests the name "Nike" for the first shoes that bear with the Swoosh mark.

Founded in 1964 through an investment of $500 each by Phil Knight and Bill Bowerman, the company (then called Blue Ribbon Sports--BLS) has evolved from being An importer and distributor of Japanese specialty running shoes to becoming the world leader in

the design, distribution and marketing of athletic footwear. Their business model in 1964 is essentially the same as their model today. They grow by investing their money in design, development, marketing and sales and then contract with other companies to manufacture their products. According to company legend, Knight developed Nikes business model while attending Stanford

Business School in the early 1960s. Knight realized that while lower-cost, high-quality Japanese producers were beginning to take over the US consumer appliance and electronic markets, most leading footwear companies (e.g.,Adidas) were still manufacturing their own shoes in higher-cost countries like the UnitedStates and Germany. By outsourcing shoe production to lower-cost Japanese producers, Knight believed that Blue Ribbon Sports could undersell its competitors and break into this market. As a result, Blue Ribbon Sports began to import high-tech sports shoes from Onitsuka Tiger of Japan. As sales increased to almost $2 million in the early 1970s, BLS parted ways with Onitsuka and began to design and subcontract its own line of shoes. The Nike brand was launched in 1972, and the company officially changed its name to Nike Inc. in 1978. Nike developed a strong working relationship with two Japanese shoe

manufacturers, Nippon Rubber and Nihon-Koyo, but as costs/prices increased in Japan over the course of the 1970s due to Crisis on Japans economy, and a shift in the dollar/yen exchange rate as a result of the so-called Nixon shock Nike began to search for alternative, lower-cost producers.

During these same years, Nike opened up its own shoe factories in Maine and New Hampshire, hoping to develop a reliable and high-quality source to supply its growing domestic market. At the same time, the company also began to cultivate potential suppliers in Korea, Thailand, China and Taiwan. By the early 1980s, as costs continued to increase in both Japan and the United States, and as the Korean government created a number of incentives to develop Koreas footwear industry,6 Nike closed its US factories and sourced almost all of its production from Asia. In 1982, 86% of Nikes athletic footwear came from Korea and Taiwan. Over time, as Korea .

Taiwan also began to develop, costs began to rise in these countries as well.

As a result, Nike began to urge its suppliers to re-locate their operations to other, lower-cost countries. The company worked with its lead suppliers to open up manufacturing plants in Indonesia, China and Vietnam. By guaranteeing a significant number of orders and by placing Nike employees at these new factories to help monitor product quality and production processes, Nike was able to help its lead vendors establish an extensive network of footwear factories throughout Southeast Asia. Today, Nikes products are manufactured in more than 700 factories, employing over 500,000 workers in 51 countries.

DATA ANALYSIS AND INTERPRETATION

1 Since how many years you are using Nike products?

a. 1 year (college students & youngsters)

b. 2 years ( college students)

c. 3 years (sports person; new entrant)

d. 5 years (sports person)

Years User No of Respondents Percentage

1 YearYounger

2 YearsCollege student

3 YearsSport person

5 YearsSport person

Conclusion: Though the sportspersons has a good preference for Nike, but most of youngsters are purchasing it for its style, coziness & trendy look.

2. How do you feel about the brand of the Nike product?

a) Good

b) Very good

c) Fair

d) Not bad

Conclusion: Almost majority of customer found it good product to use, where as few had mixed decision, almost 40% found it satisfactory.

3. Who influenced you to use this brand ?

a) Sports Person

b) Friends

c) Advertising

d) Offers

e) Self

Conclusion: The major influencer are sports person / celebrity, where as offer stand as the next factor. All others are almost equal.

4. Would you like to continue the product?

a) Yes

b) No

c) Cant say

Conclusion: Majority of the people are still not confident about their future purchase, but Nike has managed to make reasonable number of loyal customers with repetitive purchasing. Only very few said No.

5. If yes, it is because of?

a. Stylish & Trendy

b. Durability & comfort

c. Good sport product

Conclusion: Nike are perceived as most durable & comfortable brand, over style & sport utility product.

6. Are you satisfied with the Product?

a. Yes

b. No

Conclusion: Majority of customers are satisfied. But still the unsatisfied mass is considerable & need a quick attention.

7.Are you satisfied with price?

a. Yes

b. No

Conclusion: Price doesnt seem to be the issue in purchasing, though slight reduction can improve its market share.

8. Where you have seen this product?

c. T.V

d. Magazine

e. Windows display / banners

Conclusion: T. V has proved to be the best source of advertisement as it generated the majority of interest as compare to magazines & banners.

9. Do you like to shift to Nike

f. Yes

g. No

h. Cant say

Conclusion: It is clearly seen that still majority of customers are not clear about their purchase habit & needed to be shifted to a loyal customer group through effective strategy.

10) What is your opinion about the Nike footwear?

a. Good

b. Better

c. Bad

Conclusion: About 60% of customers found Nike as good product, where as 40% found it a better brand. Almost 99% of consumer found Nike a good product.

11) Which product (Foot wear) you are using

a) Semi formal

b) Casual user

c) Sport wear

d) Athletic wear

e) Foot ball show

Conclusion: Majority of customers use Nike sports wear, where as all other brands are equally divided in-group.

12.What do you feel about the price?

a) Expense

b) Average

c) Economic

Conclusion: Majority of customers use Nike sports wear, where as all other brands are equally divided in-group.

METHODOLOGY

The Primary data was obtained through dealers.

The Secondary data is collected from the annual report of the co. circular, sales report, performance report of marketing department, more over web site &T.V. Selection of source: Nike dealers and retailers outlet were selected on random sampling method during the research. Interview method with the help of structured questionnaire.

CONCLUSION

After the study of the product it is concluded that this product has its own place and pride in the market. It is appealing to wide mass & the people all over India are using this product.

The company has created a good reputation in the market due to its affordability & style. The advertising about the Nike in the T.V is quite effective.

Nike foot wears offered and provided an excellent customer satisfaction, its price is mostly reasonable but still much can be offered in this section. From above mentioned points it has been noticed that Nike products are used by both sportspersons as well as youngsters its added advantage were less stress on feet, easy walk ability & comfort make this brand as leader in Market.

SUGGESTION

This survey of Nike Inc has led to the following suggestion after the complete SWOT analysis & deep study of its conclusion.

1. Companys policy of shifting to low economy country for its production will not fetch him long term success unless it find some other strategy for it low cost shoes.

2. Nikes product are more of western taste, But to succeed in India, company must understand Indian consumer, where majority of people are living in villages and small towns.

3. Price is low as compared to other countries but still much can be done in this sector to raise the sale without sacrificing its image.

4. Nikes image as brand of sports wear is limiting its market share to sports segment and its casual shoes is still unknown to consumers.

5. Strong Need is felt to promote casual shoes by effective promotional strategy.

6. Company should look for market penetration strategy rather than competing for only single sector (Sports).

Questioner

Hello,

Consumer,

I am student of B.R.B College studying in B.com III rdyr . I am doing project work on Nike footwear. So I need your co-operation. I kindly request you to read this & give your suggestion about this product.

1 since how many years you are using Nike products?

a) a. Year college students and youngsters

[]

b) b. Years college students

[]

c) c. Years sports person (new entrant)

[]

d) d. Years sports person

[]

2. How do you feel about the brand of the Nike product?

a) Good

[]

b) Very good

[]

c) Fair

[]

d) Not bad

[]

3. Who influenced you to use this brand?

a) Sports Person

[]

b) Friends

[]

c) Advertising

[]

d) Offers

[]

e) Self

[]

4. Would you like to continue the product?

a) Yes

[]

b) No

[]

c) Cant say

[]

5. If yes, its because of ?

a) Stylish & Trendy

[]

b) Durability & comfort

[]

c) Good sport product

[]

6. Are you satisfied with the Product?

a) Yes

[]

b) No

[]

7.Are you satisfied with price?

a) Yes

[]

b) No [ ]

8. Where you have seen this product?

a) T.V

[]

b) Magazine

[]

c) Windows display / banners

[]

9.What is your opinion about the Nike foot ware ?

a) a. Good

[]

b) b. Better

[]

c) c. Bad

[]

10. Which product Foot ware you are using?

a) Semi formal

[]

b) Casual user

[]

c) Sport wear

[]

d) Athletic wear

[]

e) Foot ball show

[]

11. Do you like to shift to Nike?

a) Yes

[]

b) No

[]

c) Cant say

[]

12.What do you feel about the price

a) Expense

[]

b) Average

[]

c) Economic

[]

Findings

An analysis has revealed that:

1) 97 % of the respondents are aware of Nike shoes.

2) 30 % of the respondents are aware of Nike through friends.

3) Other than Nike, respondents own a pair of Nike shoes.

4) Respondents find the advertisement of Nike very attractive.

5) Respondents also find the advertisements of Nike is effective enough for customer service.

6) 90 % of the respondents feel the pair is very expensive.

7) The customer care is good in Nike show rooms.

8) 65 % of the respondents own a pair of Nike shoes.

Many of the respondents do recommend Nike to others. Though some may not as they are brand loyal to other shoes and some replied that the shoes are very expensive to recommend.

BIBLIOGRAPHY

CONSUMER BEHAVIOUR

By Suja R. Nair

And also from Website sites -

www.nike.com

www.google.com

Why Nike products are costly:

Making cost is less.

Materials, labor shipping, equipment, import duties and suppliers cost generally around $25 for them

On every pair they want to make at least a profit.

Nike value delivery process

Zero customer feedback time

Zero product improvement time

Zero purchasing time

Zero setup time

Zero defects

They are following pull strategy by making their product as a value based product and through advertisement endorsements.

Marketing mix

Product mixes Place

Price

Promotion

1. Variety

Channels Marked price Sales promotion

2. Quality

Coverage Discounts Advertising

3. Design

Assortments Payment mode Sales force

4. Features

Locations Credit terms Public relations

5. Brand nameInventory Direct marketing

6. Packing

Transport

7. Sizes

8. Warranties

9. Returns

Product mix

Nike has been successful in the market from last 35 years because of its wide range of varieties, good quality and new designs. Some part of the sales done because of its brand name only. It is providing a service warranty of 6 months and shoes are available from 5 to 12. It is no spending much on packing, its packaging is very simple.

Place

It does its transport through shipment. There are many intermediaries in between the manufacturer and the customer. Its main sales in cities. So they are mainly concentrating on cities. It covers a wide range of market in the cities. They are following selective distribution procedure. They supply their products to selective showrooms.

Price

Generally the payment mode will be either by credit or cash. They are providing some credit terms to their dealers. Some discounts will be there in end of seasons like winter end sales and summer end sales etc., this is mainly in the case of apparels and accessories. It is less in the case of shoes.

Promotion

Promotion is mainly through advertising. Nike is spending lots of money for their brand ambassadors. Their ambassadors include Tigerwoods, Ronaldo, Ronaldinho like that. They are producing mainly sports products so their promotion is mainly through sports personalities and teams. For example now Indian team is wearing the T-shirts that consists of Nike brand logo. They are advertising through hoardings, billboards, paper adds and TV adds.

Nike is also well known for its strong sponsorship agreements with athletes, leagues and federations, as well as many of the worlds top football (soccer) clubs and national teams, including Manchester United, Arsenal, F.C. Basel, Juventus, Clube de Regatasd Flmengo, Steaua Bucuresti, AC Sparta Praha, Red Stat Belgrade, Inter Milan, VfL Bochum, VfL Wolfsburg, Hertha BSC Berlin, Borussia Dortmund,

PSV Eindhoven, Valencia C.F., Urawa Red Diamonds, Kaizer Chiefs, Atletico de Madrid, NK Maribor, Celtic, FC Porto, Paris Saint-Germain, Boca Juniors, Corinthians, Brazil, Portugal, the Netherlands, Belgium, Russia, Morocco, India, South Korea, Serbia, Croatia, Turkey, Mexico and the United States mens womens, and Australia to produce their equipment. On December 23, 2005, Nike signed a 5-year contract (beginning January) 1, 2006) with the India

Cricket Team to become their official apparel supplier for $43 million. Nevertheless Nike does not have an India-specific website or any mention of cricket on Nike.com.

Trade promotions through discounts, allowances, trade incentives, goods sending on credit basis and free goods etc.,

Which type of pricing they are following?

They entered market with a penetration pricing. Now they are following value pricing because Nike has its own brand image and value.

Every product has a basic need and as well some extra fulfillments. In the case of Footwear.

Core benefit:

Foot care is the benefit for any type of footwear

Generic product

Foot care with comfort

Expected product

Foot care, comfort, available in all sizes with a reasonable price

Augmented product

Foot care, comfort available in all sizes with light weight and long life with reasonable prices.

Potential product

Which has less stress on feet, make our walk easy and very comfort.

Market Mix

Shoes

Apparels

Accessories and

Sports

Equipments

Product line

: 3

Width of the product mix: 3

Length of product mix : 13

Depth of the product mix: 207

Segmentation

The Geographic distribution done according to the city size etc.,

The demographic segmentation done through age. The main age range, which they are concentrating, is between 16 to 35, it is also done through gender. And one more important factor is income and occupation. Students and technical professionals mainly use Nike products.

Psychological segmentation done through the lifestyles of the people.

The Behavioral segmentation done by the benefits of it like quality, service, economy and how speed it is moving on. And one more additional advantage is it is people having a positive attitude towards it.

Targeting

They are making a selective specialization

The each segment they are making must be a profit maker

They are specialized in marketing for the targeting that which class and type of people they have to target.

Positioning

They are following different type of positioning

Frontier which means product leadership

Performance in operational excellence

Individual needs

From the three they will select any one of them and enter into the market. This is called unique selling proposition

In many aspects Nike is number one according to recent survey conducted on market by a American magazine those are

Best quality

Best performance

Best styling

Best value

Lowest price

Fast moving

Most customized

Most technological

Subcontract its own line of shoes. The Nike brand was launched in 1972, and the company officially changed as name to Nike, Inc. in 1978. Nike developed a strong working relationship with two Japanese shoe manufacturers, Rubber and Nihon-Koyo but as cost/prices increased in Japan over the course of the 1970s due to Crisis on Japans economy, and a shift in the dollar/yen exchange rate as a result of these-called Nixon shock Nike began to search for alternative, lower-cost products.

During these same years, Nike opened up its own shoe factories in Maine and EW Hampshire, hoping to develop a reliable and high-quality source to supply its growing domestic market. At the same time, the company also began to cultivate potential suppliers in Korea, Thailand, China and Taiwan. By the early 1980s, as costs continued to increase in both Japan and the United States, and as the Korean government created a number of incentives to develop Koreas footwear industry, Nike closed its US factories and sourced almost all of its production from Asia. In 1982, 86% of Nikes athletic footwear came from Korea and Taiwan. Over time, as Korea and Taiwan also began to develop, costs began to rise in these countries as well.

As a result, Nike began to urge its suppliers to re-locate their operations to other, lower-cost countries. The company worked with its lead suppliers to open up manufacturing plants in Indonesia, China and Vietnam. By guaranteeing a significant number of orders and by placing Nike employees at these new factories to help monitor product quality and production processes, Nike was able to help its lead vendors establish an extensive network of footwear factories throughout Southeast Asia. Today, Nikes products are manufactured in more than 700 factories, employing over 500,000 workers in 51 countries.

Nike core competencies make advantages to it because

It is a source of competitive advantage in that it makes significant contribution to perceived customer benefits.

It has a wide variety of applications for wide range of markets.

It is difficult to competitors to imitate.

Golf sticks (3)

Dollars (7)

Rings (19)

T-Shirts (40)

Tracks (12)

Socks (16)

Briefs (6)

Under wears (6)

Semi Formal (8)

Casual wear (23)

Sports wear (38)

Athletic wear (23)

Football shoe (6)

B.R.B. COLLEGE OF COMMERECE RAICHUR

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