Nike Shoe Inc..

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Subject: - Research Method in Business

Topic: - NIKE SHOES INC...


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Serial

Contents

1 Introduction to topic

2 Introduction to company/ product

3 Objective

4 Features

5 Process

6 Study on the company

7 Historical background

8 Present status

9 Questionnaire

10 Statistics

11 Hypothesis

12 Conclusions and Suggestions

13 Recommendations

14 Bibliography


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Introduction

Nike, Inc is a major publicly traded sportswearand equipment supplier based in the United States. The company

is headquartered near Beaverton, Oregon, which is part of

the Portland metropolitan area. It is the world's leading supplier

ofathletic shoes and apparel and a major manufacturer ofsports

equipment with revenue in excess of $18.6 billion USD in its fiscal

year 2008 (ending May 31, 2008). As of 2008, it employed more

than 30,000 people worldwide. Nike and Precision Castparts are

the only Fortune 500 companies headquartered in the state ofOregon.

The company was founded on January 25, 1964

as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and

officially became Nike, Inc. in 1978. The company takes its name

from Nike , the Greek goddess of victory. Nike markets its

products under its own brand as well as Nike Golf, Nike

Pro, Nike+,Air Jordan, Nike Skateboarding and subsidiaries

including Cole Haan, Hurley International, Umbro and Converse.Nike also owned Bauer Hockey (later renamed Nike Bauer)

between 1995 and 2008. In addition to manufacturing sportswear

and equipment, the company operates retail stores under the

Niketown name. Nike sponsors many high profile athletes and

sports teams around the world, with the highly recognized

trademarks of "Just do it" and the Swoosh logo.

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.
http://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Beaverton,_Oregonhttp://en.wikipedia.org/wiki/Oregonhttp://en.wikipedia.org/wiki/Portland_metropolitan_areahttp://en.wikipedia.org/wiki/Athletic_shoehttp://en.wikipedia.org/wiki/Clothinghttp://en.wikipedia.org/wiki/Sports_equipmenthttp://en.wikipedia.org/wiki/Sports_equipmenthttp://en.wikipedia.org/wiki/Precision_Castparts_Corp.http://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Bill_Bowermanhttp://en.wikipedia.org/wiki/Philip_Knighthttp://en.wikipedia.org/wiki/Nike_(mythology)http://en.wikipedia.org/wiki/Nike%2Bhttp://en.wikipedia.org/wiki/Air_Jordanhttp://en.wikipedia.org/wiki/Nike_Skateboardinghttp://en.wikipedia.org/wiki/Cole_Haanhttp://en.wikipedia.org/wiki/Hurley_Internationalhttp://en.wikipedia.org/wiki/Umbrohttp://en.wikipedia.org/wiki/Converse_(shoe_company)http://en.wikipedia.org/wiki/Nike_Bauerhttp://en.wikipedia.org/wiki/Swooshhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Beaverton,_Oregonhttp://en.wikipedia.org/wiki/Oregonhttp://en.wikipedia.org/wiki/Portland_metropolitan_areahttp://en.wikipedia.org/wiki/Athletic_shoehttp://en.wikipedia.org/wiki/Clothinghttp://en.wikipedia.org/wiki/Sports_equipmenthttp://en.wikipedia.org/wiki/Sports_equipmenthttp://en.wikipedia.org/wiki/Precision_Castparts_Corp.http://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Bill_Bowermanhttp://en.wikipedia.org/wiki/Philip_Knighthttp://en.wikipedia.org/wiki/Nike_(mythology)http://en.wikipedia.org/wiki/Nike%2Bhttp://en.wikipedia.org/wiki/Air_Jordanhttp://en.wikipedia.org/wiki/Nike_Skateboardinghttp://en.wikipedia.org/wiki/Cole_Haanhttp://en.wikipedia.org/wiki/Hurley_Internationalhttp://en.wikipedia.org/wiki/Umbrohttp://en.wikipedia.org/wiki/Converse_(shoe_company)http://en.wikipedia.org/wiki/Nike_Bauerhttp://en.wikipedia.org/wiki/Swoosh


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Nike knows that in athletic competition, even small

advantages are critical to performance.

Introduction to the Product

Nike produces a wide range of sports equipment. Their first

products were track running shoes. They currently also make

shoes, jerseys, shorts, baselayers etc. for a wide range of sports

including track & field, baseball, ice hockey, tennis, Association

football, lacrosse, basketball and cricket. Nike Air Max is a line ofshoes first released by Nike, Inc. in 1987. The most recent

additions to their line are the Nike 6.0, Nike NYX, and Nike

SB shoes, designed for skateboarding. Nike has recently

introduced cricket shoes, called Air Zoom Yorker, designed to be

30% lighter than their competitors'. In 2008, Nike introduced the

Air Jordan XX3, a high performance basketball shoe designed with

the environment in mind.

Nike sells an assortment of products, including shoesand apparel for sports activities like association

football, basketball, running, combat sports, tennis, American

football,athletics, golfand cross training for men, women, and

children. Nike also sells shoes for outdoor activities such as

tennis, golf, skateboarding, association

football, baseball,American

football, cycling, volleyball, wrestling, cheerleading, aquatic

activities, auto racing and other athletic and recreational uses.

Nike is well known and popular in youth culture, chav culture

and hip hop culture as they supply urban fashion clothing. Nike

recently teamed up with Apple Inc. to produce the Nike+ product

which monitors a runner's performance via a radio device in the

shoe which links to the iPod nano. While the product generates
http://en.wikipedia.org/wiki/Baselayershttp://en.wikipedia.org/wiki/Track_%26_fieldhttp://en.wikipedia.org/wiki/Baseballhttp://en.wikipedia.org/wiki/Ice_hockeyhttp://en.wikipedia.org/wiki/Tennishttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Lacrossehttp://en.wikipedia.org/wiki/Basketballhttp://en.wikipedia.org/wiki/Crickethttp://en.wikipedia.org/wiki/Nike_Air_Maxhttp://en.wikipedia.org/wiki/Nike_SBhttp://en.wikipedia.org/wiki/Nike_SBhttp://en.wikipedia.org/wiki/Skateboardinghttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Football_(soccer)http://en.wikipedia.org/wiki/Football_(soccer)http://en.wikipedia.org/wiki/Basketballhttp://en.wikipedia.org/wiki/Runninghttp://en.wikipedia.org/wiki/Combat_sportshttp://en.wikipedia.org/wiki/Tennishttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/Athletics_(track_and_field)http://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Cross_traininghttp://en.wikipedia.org/wiki/Skateboardinghttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Baseballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/Cyclinghttp://en.wikipedia.org/wiki/Volleyballhttp://en.wikipedia.org/wiki/Wrestlinghttp://en.wikipedia.org/wiki/Cheerleadinghttp://en.wikipedia.org/wiki/Youth_culturehttp://en.wikipedia.org/wiki/Chavhttp://en.wikipedia.org/wiki/Hip_hop_culturehttp://en.wikipedia.org/wiki/Urban_fashionhttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Nike%2BiPodhttp://en.wikipedia.org/wiki/IPod_nanohttp://en.wikipedia.org/wiki/Baselayershttp://en.wikipedia.org/wiki/Track_%26_fieldhttp://en.wikipedia.org/wiki/Baseballhttp://en.wikipedia.org/wiki/Ice_hockeyhttp://en.wikipedia.org/wiki/Tennishttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Lacrossehttp://en.wikipedia.org/wiki/Basketballhttp://en.wikipedia.org/wiki/Crickethttp://en.wikipedia.org/wiki/Nike_Air_Maxhttp://en.wikipedia.org/wiki/Nike_SBhttp://en.wikipedia.org/wiki/Nike_SBhttp://en.wikipedia.org/wiki/Skateboardinghttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Football_(soccer)http://en.wikipedia.org/wiki/Football_(soccer)http://en.wikipedia.org/wiki/Basketballhttp://en.wikipedia.org/wiki/Runninghttp://en.wikipedia.org/wiki/Combat_sportshttp://en.wikipedia.org/wiki/Tennishttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/Athletics_(track_and_field)http://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Cross_traininghttp://en.wikipedia.org/wiki/Skateboardinghttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Baseballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/American_footballhttp://en.wikipedia.org/wiki/Cyclinghttp://en.wikipedia.org/wiki/Volleyballhttp://en.wikipedia.org/wiki/Wrestlinghttp://en.wikipedia.org/wiki/Cheerleadinghttp://en.wikipedia.org/wiki/Youth_culturehttp://en.wikipedia.org/wiki/Chavhttp://en.wikipedia.org/wiki/Hip_hop_culturehttp://en.wikipedia.org/wiki/Urban_fashionhttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Nike%2BiPodhttp://en.wikipedia.org/wiki/IPod_nano


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useful statistics, it has been criticized by researchers who were

able to identify users' RFID devices from 60 feet (18 m) away

using small, concealable intelligence motes in a wireless sensor

network.

In 2004, they launched the SPARQ Training Program/Division.

Some of Nike's newest shoes contain Flywire and Lunarlite Foam.

These are materials used to reduce the weight of many types of

shoes.

Objectives

Brand loyalty

To study the tastes, preferences, and buying behavior of

consumers footwear

To recommend strategies to Nike to increase sales in India Are consumers aware of the stars endorsing the products?
http://en.wikipedia.org/wiki/RFIDhttp://en.wikipedia.org/wiki/Crossbow_Technologyhttp://en.wikipedia.org/wiki/Wireless_sensor_networkhttp://en.wikipedia.org/wiki/Wireless_sensor_networkhttp://en.wikipedia.org/wiki/Nike_SPARQhttp://en.wikipedia.org/wiki/Nike_Flywirehttp://en.wikipedia.org/wiki/RFIDhttp://en.wikipedia.org/wiki/Crossbow_Technologyhttp://en.wikipedia.org/wiki/Wireless_sensor_networkhttp://en.wikipedia.org/wiki/Wireless_sensor_networkhttp://en.wikipedia.org/wiki/Nike_SPARQhttp://en.wikipedia.org/wiki/Nike_Flywire


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Features

Apart from delivering a pair of comfortable sports shoes Nikealso 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 theheels. 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 thestrain to his feet while playing.

Lightweight: This attribute is in line with the two described

above. A lightweight shoe provides greater mobility and eases


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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. Theywould 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 Nikes and have

been wearing them for well over two years a symbol of the

durability of Nike shoes.

Style: Nikes designs are considered to be the most stylish inthe 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. It is positioned as apremium performance brand.


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Process

TYPE OF RESEARCH DONE: -

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.


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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 questionshave 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


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EXTENT:-

Where the survey should be carried out?

I have covered entire residential area of Vashi city for the survey

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

(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.


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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

interviewers response since it was not desirable to interrupt the

flow with lengthy note taking. Then immediately after theinterview, 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 ofrespondents 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 FINDINGSFinally 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


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behavior.

BIASES AND NON-COOPERATION OF THE RESPONDENTS.

The collected data are placed into an order. Percentages ofrespondents 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 vagueenough 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

Study on the company

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


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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, andwe'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.


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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 LLCand 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 accessoryproducts 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 ourresponsibilities 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.

HISTORICAL BACKGROUND

It began in 1964 with a casual agreement and a handshake

between University of Oregon track coach Bill Bowerman and Phil


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Knight, a middle-distance runner. The pair formed Blue Ribbon

Sports and began importing Japanese brand Onitsuka Tiger

running shoes, known today as ASICs, for sale in the U.S.

In 1967, Knight and Bowerman made the handshake deal formaland incorporated as BRS Inc. Jeff Johnson signed on in 1965 as the

company's first full-time salesperson and opened Blue Ribbon

Sports' first retail outlet the following year. In 1971, Johnson made

an incalculable contribution to the company: One night, he

dreamed of Nike, the Greek goddess of victory, and suggested the

name to his bosses. The company used the moniker for its first

footwear product to feature the "Swoosh" mark -- a soccer cleat

called the Nike, whose name beat out Knight's suggestion thatthey call it the Dimension 6.

The Swoosh trademark was created by a graphic-design student

from Portland State University named Carolyn Davidson. She got

$35 for her creation.

Expanding the Nike Brand

Looking to expand the line, Bowerman began experimenting with

the concept of athletic shoes with rubber spikes. By pouring a

liquid rubber compound into his wife's waffle iron, Bowerman

created an innovative running-shoe sole. The company unveiled

Nike "Moon Shoes" featuring the Waffle sole for athletes

competing at the U.S. Olympic Trials in Eugene, Ore., in 1972. A

succession of shoes, many based on the waffle outsole, followed.

Some of the most famous are the Waffle Racer, Air Force One and

Air Max 97.

When tees featuring a lower-case "nike" script logo designed by

Davidson hitstores that year, folks unfamiliar with the name

asked, "Who's Mike?" when they spotted the shirts.


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Elite Sponsors: Athletes in Nike Shoes

A growing number of elite athletes competed in Nike footwear.

Runner Mark Covert was the first athlete to wear Nike shoes

across a finish line. Nike shoes got their first endorsement by aprofessional athlete when Romanian tennis personality Ilie

Nastase signed on to wear Nikes on the court.

In 1977, former aerospace engineer Frank Rudy teamed with Nike

to create the first Air-Sole units -- durable bags filled with

pressurized gas that compressed under impact, then sprang back.

The result was Nike Air cushioning, which hit stores in 1979.

In 1980, Nike went public.

The year 1984 saw the signing of basketball megastar Michael

Jordan to an endorsement contract, followed by the 1985 release

of his signature shoe, the Air Jordan. Originally, the NBA banned

this new shoe because it didn't match the league's dress code,

but the ban simply served to give the design a higher profile and

extensive publicity.

Nike revenues topped $1 billion for the first time in 1986. The

rest, as they say, is history.


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Superstar Follow-Up

Nike followed up on its footwear fame by dressing athletes from

head to toe, introducing apparel collections for tennis and

basketball, which were popularized respectively by superstarsJohn McEnroe and Michael Jordan. In 1988, Nike's "Just Do It"

slogan was introduced, and it remains one of the most

recognizable and successful commercial taglines. In 1990, the

first NikeTown store opened in Portland, Ore. The company signed

golfing phenom Tiger Woods in 1996.

In 1999, Bill Bowerman, Nike's co-founder, died at age 88. The

company bought bankrupt rival Converse for $305 million in2003. In 2004, Phil Knight stepped down as CEO and president of

Nike, but he continues as chairman. Headquartered in Beaverton,

Ore., Nike remains one of the largest and most successful

companies operating today.


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Present status

Nike India has said that its 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, whichwill 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 customersoutstanding. 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 toclear 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 companys

other factories and associated manufacturers, will now be

gradually produced within the factory. The commencement ofproduction from this factory will help in re-cooping the minimal

loss being suffered by the company from this lockout.

The management says that it is not averse to outsourcing if it


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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 rangeof 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 companys 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.Theres 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 weakperformances 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 companys 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 companys revenues are from the domestic market

while the remainder is from exports. Nike India is the biggest

player in the Indian shoe market.

Nike Indias major problems include its high cost of production


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and low emphasis on marketing. The company may be able to

address the first problem through outsourcing products. Batas

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, theirpreference 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 andthe 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 goingthrough 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 retainits 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.


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It is to the companys credit that it has lately overhauled

its marketing set-up into a four-tier retail structure that will be

stocked with products matching the areas 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. Atthe 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 companys 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 Indias 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.


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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 festiveseason advertising, side-stepping JWT, its incumbent agency. The

job involves developing special communication directed towards

the festival season shoppers.

Nike India Ltd (BIL) is Indias 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 saleswhile the balance. The turnover break up is as follows

Products Volume (%) Value (%)

Rubber and Canvas 50: 30

Leather 29 :57

Plastic 21: 9


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GROWTH DRIVERS

The company has a very comprehensive distribution network

which comprises its own and franchise stores. It has 1500showrooms, 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 budgetstores 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 manufacturingactivities 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 loweroperating 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.


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The Peenya plant has not commenced operations despite lifting

up of the lock out since July 3, 2007.

VALUATION

BILs long-term success is dependent on the how labour issue istackled 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 tothe 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 premiumsegment 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.

BILs long-term success is dependent on the labor issue and the

flexibility, which it can adopt to meet threat of imports andcompetition from local footwear companies. Long term investors

with a two-year investment horizon can accumulate the stock at

current levels.

FINANCIAL HIGHLIGHTS


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(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

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

As on 30 June 2007, the public, institutions and foreign bodies

held31.23%, 13.91% and 0.16% stake in the company, respectively

4PS OF NIKE

Nikes 4Ps comprised of the following approaches to pricing,

distribution, advertising and promotion, and customer service:


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Pricing: Nikes pricing is designed to be competitive to the other

fashion shoe retailers. The pricing is based on the basis of

premium segment as target customers. Nike as a brand

commands high premium.

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

the exclusive Nike stores across countries. While this necessitates

a second trip for the customer to come and pick up the shoes, it

allows Nike to offer a much wider selection than any of the

competition.

Promotion: Location, targeted advertising in the newspaper and

strategic alliances serves as the foundation of Nike advertisingand 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. Forexample:

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


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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

frequentlysometimes

never


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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.


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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

Agree

Indifferent

DisagreeStrongly disagree

12. I Like to buy shoes which are not very stylish but

comfortable

Strongly agree

Agree

Indifferent

Disagree

Strongly disagree

13. I Like to buy shoes which are not stylish but

comfortable and long lasting

Strongly agree

Agree

Indifferent


14. I Like to buy shoes which are expensive & stylish but

comfortable strongly agree

Agree


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Indifferent

Disagree

Strongly disagree

15. I like to buy Nike shoes which are expensive & stylish

but comfortable

Strongly agree

Agree

Indifferent

Disagree

Strongly disagree

16. I like to buy Nike shoes which are not very stylish but

comfortable

Strongly agree

Agree

Indifferent

Disagree

Strongly disagree

17. I like to buy Nike shoes which are not stylish but

comfortable and long lastingStrongly agree

Agree

Indifferent

Disagree


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Strongly disagree

18. I like to buy Nike shoes which are not very stylish but

comfortable

Strongly agree

Agree

Indifferent


19. I like to buy Nike shoes which are less expensive but

very stylish & of latest design.

Strongly agree

Agree

Indifferent


20. I like to buy Nikes hoes which are very stylish & of

latest design.

Strongly agree

Agree Indifferent

Disagree

Strongly disagree

21. I like to buy Tailor made shoes which are very stylish


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& of latest design.

Strongly agree

Agree

Indifferent

Disagree

strongly disagree

22 .I will certainly buy shoes if high quality matching

imitation jewelry given free.

Strongly agree

Agree

IndifferentDisagree

Strongly disagree

23. I will certainly buy shoes if high quality imported

scent given free.

Strongly agree

Agree

IndifferentDisagree

Strongly disagree

24. My expectation is fulfilled by my shoe supplier.

Strongly agree

Agree

Indifferent

Disagree

Strongly disagree


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25. Shoe companies should survey customer preferences.

Strongly agree

Agree

Indifferent

Disagree

Strongly disagree

26. Shoe companies should suggest shoe design using

celebrity.

Strongly agree

Agree

IndifferentDisagree

Strongly disagree

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

Strongly agree

Agree

Indifferent


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

shoes.

Strongly agree

Agree

IndifferentDisagree

Strongly disagree

29. Stores display is the best form of advertisement


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Strongly agree

Agree

Indifferent

Disagree

Strongly disagree

30. T.V advertisement is the best form of advertisement

Strongly agreeAgree

Indifferent

Disagree

Strongly disagree

31. Buying customized shoe by internet is very attractive.

Strongly agree

Agree

Indifferent

Disagree

Strongly disagree

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

Strongly agree

Agree

Indifferent


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Disagree

Strongly disagree

Statistics1. Do you ask for a specific brand by name?

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

2. 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.

3. Has any sports shoes ad (seen on TV/in a magazine) made

an impact on you?

YES NO IF YES, THEN WHY

NIKE 43 57

ADIDAS 63 37

REEBOK 45 55

ACTION 30 70

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

Reebok and then Nike. The most un-influential is that of

action.


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4. What according to you is the relative importance of the

following?

V. Imp Imp. Not so Imp. Doesnt matter

PRICE 50 28 12 10

DURABILITY 55 45 0 0BRAND 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 isalso important.

5. 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.

6. What range do 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

7. How often you buy Nike?

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

notice one thing that some dont buy Nike


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8. Are you satisfied buying Nike?

The people who buy Nike are fully satisfied buying it, theirpercentage is 64%. Only 15 % are not satisfied buying it.

9. Do you think Nike serves the purpose of being a good brand,

for Sports wear?

56% of the people agree that Nike serves its purpose for

being a sport brand. Only 27% people dont agree with it

10.Will you prefer Nike launching a new range which can servethe purpose of service class

67% say yes to the idea of launching a new range for the

service class. 36 dont have any idea of this.

Hypothesis


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I wanted to find out which brand of shoes is the most

popular for

consumers in Vashi. I also wanted to know their reasonsfor buying a

certain brand of shoes. My hypothesis stated that the

most

popular shoes for consumers will be the Nike

I found out that the majority of consumers picked "Nike " and

"Adidas" for their most favorite pair of shoes when given a choice

between Puma, Reebok, and New Balance. The majority of

consumers picked their favorite pair of shoes because the shoes

were comfortable. The majority of students disliked Puma

because they were not comfortable.

Therefore, I accepted my hypothesis which stated that "Nike"

would be the most popular shoes.

I wanted to find out whether the consumers are aware of

the stars endorsing the products and do they wear it

because they are wearing it? My hypothesis stated that

they are aware of who are endorsing it and they wear it

because they are wearing it.

I found out that the majority of the consumers are not aware of

the stars endorsing the products and they dont wear it becausethey are wearing it because they are not be comfortable wearing

it

Therefore, I rejected my hypothesis which stated that the

consumers are aware of the stars endorsing the products and do


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they wear it because they are wearing it

Conclusions and suggestions

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 themintended 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 volumesof 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.


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Hence market share has also to be paid attention to.

Nike despite being one of the most popular brands in the

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

to believe that Batas Power and Liberty would be ahead ofNike 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 Nikes popularity level in

India could do with a boost. The best way to achieve this

would be some serious brand building. The image of thebrand has to be improved and people must be made aware

of its presence. Thus, the rationale behind choosing

improvement of brand image and reputation as the

companys primary objective is quite clear.

Nikes distinctive competency lies in the area of marketing,

particularity in the area of consumer brand awareness and

brand power. On the global scale this key distinctivecompetency towers over the competitors. As a result, Nikes

market share is number-one in the athletic footwear industry

in most places around the world. Catch phrases like, "Just Do

It," and symbols like the Nike "Swoosh," couple with sports

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

about time that this competency is leveraged on to India.

Two key attributes of a distinctive competency are itsinability to be easily replicated and the value or benefit it

offers to consumers. Few companies have such a

recognizable image and the resources to promote it. This

ultimately translates into added value for consumers. The

public benefits from the strength of Nikes image at the point


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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 theirpurchases 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.

Nikes vision is to remain the leader in the industry. The

company will continue to produce the quality products thathave been provided in the past. Most importantly, Nike will

continue to meet the ever-changing needs of the customers,

through product innovation. In the past, the company has

utilized product differentiation as the main competitive

strategy. As Nikes reputation dictates, it will continue to

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

providingproducts that rise above all others and this has

made it the worldwide success that it is today.

Nike is known for its technologically advanced products and

is the leader in this area. This allows Nikes products to stand

out from the rest. The companys focus also allows it to

maintain a somewhat narrow niche that enables it to

effectively capture the needs and wants of the consumers.

An example of Nikes superior and innovative technology is

its new range of shoes called Air Presto. Termed as thefirst T-shirt for the feet, these shoes can take the shape and

size of the wearers 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


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future and stay a step ahead of its competitors.

Nike will also focus on making a strong effort in price

leadership. Nikes products in the past have been

concentrated in the higher end of the pricing category. Anentrance 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-monthwarranty. 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. Theform will ask the customer his / her opinion on the product

as well as the showroom. Suggestions and comments would

be welcome. However, care must be taken to ensure that

these forms are not too cumbersome and do not take up too

much of the customers time. Surveys have indicated that

normally people dont mind filling in forms as long as they

are not too long.

Another good method would be to introduce a system of

customer points. Every 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


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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. Thiswould 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

Department stores are the prime sales

and marketing channel for 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, couldbe 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


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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.

Regarding colors, black is by far most sought-after with dark

brown in second place.

Bibliography

BOOKS:-

Marketing Management - Philip Kotler

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

WEBSITES:-


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Nikebiz : NIKE, Inc. Official Site, the worlds largest, leading

athletic brand

Nike town:

Business.com: - The Business Search Engine and Business

Directory for Business InformationNikes online store for India

Wikipedia

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