Assignment Assessment Report

Campus: Level: Module Name: Students Name: e-mail id & Mob No Stream chennai Year/semester ACL-II Assignment Type SALES Assessors Name Vigneshwaran Reqd Submission Date Vignesh.wanted@gmail.com Actual Submission Date BUSINESS Submitted to : 2011-13 - 2 Module Mr.Ganesh Subramaniam 27th April 2012 27th April 2012 Ms.S.Mohana

Certificate by the Student: Plagiarism is a serious College offence. I certify that this is my own work. I have referenced all relevant materials. (Students Name/Signatures) Expected Outcomes Assessment Criteria Grade based on D,M,P,R system Feedback

General Parameters
Clarity Analytical ThinkingResearch DoneFormatting & PresentationClear understanding of the concept Ability to analyze the problem realistically Research carried out to solve the problem Concise& clear thinking along with presentation

Subject Specific Parameters

Clarity Analytical Thinking Understanding of the channels of Sales Ability to analyze the product specifications and the problems .

Grades P M D

Grade Descriptors A Pass grade is achieved by meeting all the requirements defined. Identify & apply strategies/techniques to find appropriate solutions Demonstrate convergent, lateral and creative thinking.

Achieved Yes/No (Y / N)

Assignment Grading Summary (To be filled by the Assessor)

OVERALL ASSESSMENT GRADE: TUTORS COMMENTS ON ASSIGNMENT: SUGGESTED MAKE UP PLAN (applicable in case the student is asked to re-do the assignment) REVISED ASSESSMENT GRADE TUTORS COMMENT ON REVISED WORK (IF ANY) Date: Assessors Name / Signatures:

ANSWER 1) Athletics in the business world is a huge market which NIKE has been able to capitalize. As we know that both the brands NIKE and ADIDAS are having a very good brand reputation in the market and both the brands have different market segments and different strategy. After going through the case study and also visiting both Nike and Adidas outlets in Chennai, has more consumers of ADIDAS shows as compared to the NIKE. Now I am going to describe about the market study as per the consumer demographical depending on their Age, Education and Income.

a. Description as per the Consumer Demographical Profile:

Most enterprises use demographic profiles to exactly target the right consumer of their products so did NIKE. Age Group: The division of age group is like teenagers (18-25), youth (25-35), Men (3550) and Senior citizens (50+). As per the age group the consumption of footwear is more in the working men and youth who are in the sports field. The consumers are typically professional athletes, sportsmen and young people who identify with sport as a lifestyle mostly in the age group of 15-35 but this age barrier seems to be falling now, more children in the 12+ age category are identifying with these brands mainly due to their addition to sports like cricket and football. Also the consumers are brand conscious adults and girls who look to them as status symbol. Education Group: The educational group has divided into three groups these are Schooling, Graduates, Master Degree, and lastly the PhD students. The consumption of the footwear is more in the graduate students as compared to the other age group. Income or social Group: The Indian income group is divided into three income groups Lower, Middle, and Upper Class. Both the brands have their target segment of middle and upper class so the statics are as per consumption of these two groups. Now lets make an analysis of some of the retail stores and sales in Chennai: Adidas: There are about 10 retail stores of Adidas in Chennai. Retail Research on Adidas (Alwarpet T.T.K Road)

Regular sales month Discount Period Average age of top customers Items sold items Apparels Gender Lifestyle : : : : : : : March January and July and August 30-45 Football, Basketball and Cricket and Tennis based T-Shirts, Shoes Male (Dominant), Women Health Conscious, Working class

To discuss on the above conditions, The discounted period mostly depends on times when the company actually wants to boost up sales. The most repeated and reliable customers range between the age group of 30 45 who are basically health conscious, elite class and those who go running, jogging, etc. These groups are mostly working population and they are the sure shots of the business who tend to actually use high quality products and are able to afford high price in compensation. And based on the research made it was evident that majority of the sales were only from Men and women were only their second preference. On the grounds of Chennai, sales are mostly based on walk-ins and the ratio of sales through digital sales or e-commerce is relatively too low. This may be because often people have a physical feel of the product before buying it and they feel really proud and excited about walking into an international branded showroom and come out with an item of their choice. The company also survives on the tie ups with various sports clubs, colleges and sometimes even schools that encourage sports on their main ground. They also concentrate on having relationships with aerobic and gyms across the city and make the extra sale possible. NIKE

Nike is one good company that was able to set up their strong foot on Indian soil. The ground work made on retail stores in Chennai, Alwarpet: Regular Sales Discount Period Age Group Gender Lifestyle : : : : : December and July Jan 15 to Feb 15 38 45 Male Elite class

The major sports that Nike concentrates are football, Basketball and tennis and the items include all items relating to these sports. Nike also provides a wide range of sandals, footwear, running and sports shoes. Nike also holds a decent percentage of sales on other accessories like bands, style wears, etc. Again in Nike also the majority of the customers are from Business class and working population. Customers of Nike feel that they are more attractive and brand conscious and feel elite about themselves in using the brand. Sales actually improve on this criteria and Nike is able to cope up with this attitude of their customers. Nikes branding is directly related to its increase in sales. There is no doubt that Nike also targets health conscious groups and they too try to expand their areas of sales by introducing them in fitness zones. But unlike Adidas, Nike is majorly into sports and has convincingly become a symbol of sports. However, a discussion with one of the employees from Nike had it clear that they werent trained well enough to handle the customers with ease. This could directly impact the sales

conversion ratio. Theres nothing bad for a company than entering into the store with the intension of buying but leaving empty because of poor service. This is one area where Nike has to look to improve.

A Competitor analysis can help the cause and the best out of the lot would to choose PUMA. PUMA

Puma has not entered the Indian market in full fledge however they have a eye on the customers here. Regular Sale period Discounted Sale Festive Offers Age Group Lifestyle Products : : : : : : March and April January and July October and November 20-35 Working class, Students, Fashion Cricket, Tennis, football and fitness based

Puma as a brand does not have much awareness among the customers in India. Their advertisements and activities to interact with the customers also is quite low however they have managed to portrait themselves as a brand of style and fashion that attracts the younger population. Puma has their products very much customized for this purpose and manages to stand among the other leading brands. Puma also agrees that the staff performance is not set to high standards that they have been reported losing customers. Puma does not have many retail outlets in Chennai and are very much conservative with their policies. It is also hesitant to invest huge amounts in Indian market as they have really well set competitors against them.

Above were the studies made on each franchisee outlets across the city however they comparison can be made easy when carried on a Multi brand store. We visited Kobbler, Alwarpet which consists of around 20 brands of sports and athlete items.

KOBBLER

Regular Sale Discount Sale Brands Age Gender Products

: : : : : :

Nov, Dec, Jan Sep, March Adidas, Reebok, Puma and 20 other brands except NIKE 19-30 Men All items relating to sportswear

It was interesting to see that the most popular brand NIKE was missing out in the shelves. When enquired about the reasons, Nike was too costly for the customers who land there. When they could get a similar shoe or apparel from the other brands at a lesser cost, customers turned their back towards Nike except those who were brand conscious.

B) Acceptance levels of the 2 brands in the consumers.

The acceptance level of both brands are almost equally but according to the survey its proves that NIKE is most accepted but falls down only in pricing as its too high . It was also seen that people who preferred Adidas was more brand loyal.

C) Consumer feedback for improvement of NIKE.

Feedback from some customers of NIKE was as follows:

1) Consumers from old age group need shoes with soft base for morning walks. 2) There is no question about Nikes quality however sometimes I feel like spending a few bucks more than what the product actually deserves. Though I build self-esteem buying the brand still it makes to regret later. 3) Nike can be made available to all sections and all classes of people. 4) Nike has to position differently in countries like India and they have to consider a good method of adopting price.

SWOT report of NIKE Vis competition both in the branded as well as the unbranded market Strengths: Sponsoring of sports athletes and gaining of valuable coverage. Development of high quality products. Belongs to fortune 500 companies. Highest market share Brand loyalty

 High prestige Treated as a fashion brand by youths and thus stays in demand

Weakness: Pressured to charge low price because of the emerging completion Due to diversified products values fall as market share falls Was positioned as a subject of criticism by anti globalization groups due to its exploited manner that was quite a disaster for its reputation Opportunities: High fashion trends Targeting more women consumers Global and free market Wide range of products Threats: New brands of same quality with lower price margin leaving a competitive advantage Cheap foot wares by unbranded market More new comers Close competitors such as Adidas and Reebok are more aggressive Changing behavior of consumers Consumers moving from sportswear to fashion wears Competitors constantly developing alternative brands and technologies to take away NIKES market share.

Future challenges that NIKE may have to overcome in market: With emerge of Adidas ,Reebok and Puma ,a very potentially powerful brands NIKE must retain their loyal consumers by delivering something new at every stage of their relationship with them NIKE should produce low price shoes in order to gain more customers as compared to the top players in the market

 Nike mainly focuses on shoe market. They should also focus on other segments like

clothing and accessories as Adidas is very popular in other categories. Nike is basically operating on low volume high cost principle which may be affected badly with the similar quality offers by other companies at a relatively lower price. Nike can also plan in setting up plants in India which could make their cost to be lowered and thus can retain and gain more customers.