INTRODUCTION

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

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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.

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 COMPANY PROFILE

Nike, originally known as Blue Ribbon Sports (BRS), was founded

by University of Oregon track athlete Phil Knight and his coach, Bill
Bowerman, on January 25, 1964. The company initially operated in Eugene,
Oregon as a distributor for Japanese shoe maker Onitsuka Tiger, making most
sales at track meets out of Knight's automobile.

According to Otis Davis, a University of Oregon student athlete coached

by Bowerman and Olympic gold medalist at the 1960 Summer Olympics, his
coach made the first pair of Nike shoes for him, contradicting a claim that they
were made for Phil Knight. According to Davis, "I told Tom Brokaw that I was
the first. I don't care what all the billionaires say. Bill Bowerman made the first
pair of shoes for me. People don't believe me. In fact, I didn't like the way they
felt on my feet. There was no support and they were too tight. But I saw
Bowerman made them from the waffle iron, and they were mine".

In its first year in business, BRS sold 1,300 pairs of Japanese running
shoes grossing $8,000. By 1965, sales had reached $20,000. In 1966, BRS
opened its first retail store at 3107 Pico Boulevard in Santa Monica, California.
In 1967, due to increasing sales, BRS expanded retail and distribution
operations on the East Coast, in Wellesley, Massachusetts.

By 1971, the relationship between BRS and Onitsuka Tiger came to an

end. BRS prepared to launch its own line of footwear, which was rebranded as
Nike, and would bear the Swoosh newly designed by Carolyn Davidson. The
Swoosh was first used by Nike on June 18, 1971, and was registered with
the U.S. Patent and Trademark Office on January 22, 1974.

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 In 1976, the company hired John Brown and Partners, based in Seattle,
as its first advertising agency. The following year, the agency created the first
"brand ad" for Nike, called "There is no finish line", in which no Nike product
was shown. By 1980, Nike had attained a 50% market share in the U.S. athletic
shoe market, and the company went public in December of that year.

Wieden+Kennedy, Nike's primary ad agency, has worked with Nike to

create many print and television advertisements, and Wieden+Kennedy
remains Nike's primary ad agency. It was agency co-founder Dan Wieden who
coined the now-famous slogan "Just Do It" for a 1988 Nike ad
campaign, which was chosen by Advertising Age as one of the top five ad
slogans of the 20th century and enshrined in the Smithsonian Institution. Walt
Stack was featured in Nike's first "Just Do It" advertisement, which debuted on
July 1, 1988. Wieden credits the inspiration for the slogan to "Let's do it", the
last words spoken by Gary Gilmore before he was executed.

Throughout the 1980s, Nike expanded its product line to encompass

many sports and regions throughout the world. In 1990, Nike moved into its
eight-building World Headquarters campus in Beaverton, Oregon. The first
Nike retail store, dubbed Niketown, opened in downtown Portland in
November of that year.

Phil Knight announced in mid-2015 that he would step down as

chairman of Nike in 2016. He officially stepped down from all duties with the
company on June 30, 2016.

In a company public announcement on March 15, 2018, Nike CEO Mark

Parker said Trevor Edwards, a top Nike executive who was seen as a potential
successor to the chief executive, was relinquishing his position as Nike's brand
president and would retire in August.

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 In October 2019, John Donahoe was announced as the next CEO, and
succeeded Parker on January 13, 2020. In November 2019, the company
stopped selling directly through Amazon, focusing more on direct relationships
with customers.

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 PRODUCT PROFILE

Nike produces a wide range of sports equipment. Their first products

were track running shoes. They currently also make shoes, jerseys,
shorts, cleats, baselayers, etc. for a wide range of sports, including track and
field, baseball, ice hockey, tennis, association football (soccer), lacrosse,
basketball, and cricket. Nike Air Max is a line of shoes first released by Nike,
Inc. in 1987. Additional product lines were introduced later, such as Air
Huarache, which debuted in 1992. The most recent additions to their line are
the Nike 6.0, Nike NYX, and Nike SB shoes, designed for skateboarding. Nike
has recently introduced cricket shoes called Air Zoom Yorker, designed to be
30% lighter than their competitors'. In 2008, Nike introduced the Air Jordan
XX3, a high-performance basketball shoe designed with the environment in
mind.

Nike sells an assortment of products, including shoes and apparel for

sports activities like association football, basketball, running, combat sports,
tennis, American football, athletics, golf, and cross training for men, women,
and children. Nike also sells shoes for outdoor activities such as tennis,
golf, skateboarding, association football, baseball, American football, cycling,
volleyball, wrestling, cheerleading, aquatic activities, auto racing, and other
athletic and recreational uses. Nike recently teamed up with Apple Inc. to
produce the Nike+ product that monitors a runner's performance via a radio
device in the shoe that links to the iPod nano. While the product generates
useful statistics, it has been criticized by researchers who were able to identify
users' RFID devices from 60 feet (18 m) away using small, concealable
intelligence motes in a wireless sensor network.

In 2004, Nike launched the SPARQ Training Program/Division. Some of

Nike's newest shoes contain Flywire and Lunarlite Foam to reduce weight. The

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Air Zoom Vomero running shoe, introduced in 2006 and currently in its 11th
generation, featured a combination of groundbreaking innovations including a
full-length air cushioned sole, an external heel counter, a crashpad in the heel
for shock absorption, and Fit Frame technology for a stable fit.

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.

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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". It is positioned as a premium
performance brand.

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.

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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.

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 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:
 To study about Nike Shoes Market share in Cumbum area.

SECONDARY OBJECTIVES:

 To know the customer satisfaction level of Nike Shoes.

 To find out influencing factors for the purchase of Nike Shoes.

 To know the reason for prefer of Nike Shoes.

 To know about the benefit of Nike Shoes.

 To know about compare with other company

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 RESEARCH METHODOLOGY

Research method is a basic plan, which guides the data collection and
analysis phases of the research project. It is framework, which specifies the
type course of the data and the data collection periods.

DATA COLLECTION:
Data collection is the generated when the research using personal
investigates particular problem at the primary 3 method can collect data.

SAMPLING:
Sampling means where only a few units of population under study are
considered for analysis is called sampling. It is a process of obtaining the
information about an entire population by examining only a part of it.

SAMPLING TECHNIQUES:
Sampling techniques used in the survey was random sampling.

SAMPLING SIZE:
The sample size taken from survey is 100 respondents.

BASICALLY SAMPLES ARE TWO TYPES:

1. Probability of random sampling

2. Non-probability sampling

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PROBABILITY SAMPLING:
A Probability sampling is also called random sample. It is chosen in such
a way that each member of a universe have a known chance of being selected.
 Systematic sampling
 Stratified sampling
 Cluster sampling

NON-PROBABILITY SAMPLING:
The Non-probability sampling is the chance of and particular unit in the
population being selected is unknown since randomness is not involved in the
selection process an estimate of the sampling error cannot be made. But this
does not mean that the findings obtained from Non-probability sampling area
questionable value. If properly conducted their finding can be as accurate as
those obtained from probability sampling. In our survey, I have followed
random sampling method.

SECONDARY DATA:
Secondary data are those data, which are collected from some earlier
research work. This data are printed in nature. Booklets, statistical information
etc.

QUESTIONNAIRE METHOD:
In this method a question considering list of question airing pertaining to
the survey is prepared. There are blank spaces for answers. The questionnaire
is sent to the respondents who have expected to write the answer in the blank
spaces.

TOOLS FOR ANALYSIS:

The contact method used in the survey is percentage analyzed method.

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 DATA ANALYSIS AND INTERPRETATION
This is an attempt to organize and summarize data in order to increase
results, usefulness in such a manner that enables the research to relate critical,
points with the study objectives. Sometimes these organizing and summarizing
of data requires the use of summary statistical measures.

Such as percentage averages and dispersions since most marketing data

are collected through the use of samples, the reliability of the summary
estimates are required to be determined. In this survey the collected data are
analyzed and interpreted by the percentage analysis method.

PERCENTAGE ANALYSIS METHODS:

Percentage method to a special kind of Ratio percentage is used in
making comparison between two or more series of data percentage to describe
relationship.

No. Of Respondents
Percentage = ———————————— x 100
Total respondents

RESEARCH DESIGN:
A marketing research design specifies the procedure for conducting and
controlling the research project. The choice of particular research design would
follow from the problem. As such there is no single best design. However, any
marketing research study must explicitly state its plan about collecting and
analysis of data.

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 SUGGESTIONS

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.

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 LIMITATIONS

 The study was done in Cumbum valley only

 There was no response from the respondents

 The data's collected from the respondents are not satisfactory

 It looks more than 15 days to get the opinions of the respondents

 Some respondents feel irritated to answer the questions

 Faced more difficulties in gathering the data.

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 CONCLUSION

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

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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.

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 BIBLIOGRAPHY

BOOKS
Marketing Management - Philip Kotler
Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.

WEBSITES
 http://www.managementparadise.com
 http://www.wikipedia.org
 www.researchgate.net
 www.nike.com

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1) Name
2) Age
a) 15-20 b) 20-25 c) 25-30
3) Gender
a) Male b) Female
4) Are you brand conscious of footwear?
a) Yes b) No
5) If you are going to buy a pair of sports shoes, which brand would you like to
choose?
a) Nike b) Adidas c) Puma d) Reebok e) Other
6) Which is the most important reason when you select footwear?
a) Brand b) Quality c) Price d) Packaging
e) Comfort Personality
7) Are you brand loyal to any brand below in terms of footwear in the
sportswear industry?
a) Nike b) Adidas c) Puma d) Reebok
e) Regularly switch to other brands f) Other
8) What are the main factors if you switch to buy the footwear of another
brand?
a) Quality b) Price c) Innovation d) Advertisement e) Other
9) What is your opinion about the availability of the product?
a) Very rare b) Optimum c) Available
10) What is your opinion about the price of the product?
a) Low b) High c) Very High d) Medium
11) How long have you been used this product?
a) 6 months to 1 year b) 1 to 3 years
c) 3 to 5 years d) 5 to 7 years
12) Where do you purchase the watch?
a) Retail shop b) Wholesale c) Online
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13) If you are going to buy a pair of customized footwear, which brand will
you choose?
a) Nike b) Adidas c) Puma d) Reebok
e) Other
14) What range you prefer?
a) 1500-2000 b) 2000-3000 c) 3000-5000 d) Above 5000
15) Are you satisfied buying Nike?
a) Satisfied b) Fully satisfied c) Average satisfied
d) not satisfied

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