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A

PROJECT REPORT
On
“CUSTOMER PERCEPTION AND BRANDS AWARENESS
OF NIKE SHOES”

Submitted in Partial Fulfillment of the requirement for the


Degree of
“Master of Business Administration”

(Session : 2019-2021)
Submitted To: Submitted By:
Ms. Nidhi Sheoran Shantnu Mudgil
(Assistant Professor) M.B.A. 4th Sem.
K.A.I.M., Charkhi Dadri Roll No. 19014
Uni. Roll No.- ……………

Affiliated to M.D. University, Rohtak


ACKNOWLEDGEMENT

Before I get into the thick of the things I would like to add a few heartfelt words for the

people who were part of this research report in numerous ways and people who gave

1
unending support right from the stage the project was started, appreciated and encouraged

when being depressed.

In this context I would like to express my gratitude towards my parents and family members

who have constantly supported and played a pivotal role in shaping my career.

I owe my sincere gratitude towards faculty guide Ms. Nidhi Sheoran, Kaim Charkhi Dadri

for extending the support towards the completion of the Research Report.

And finally I would like to thank my friends for their unending support. 

                                                            

(Shantnu Mudgil)

2
PREFACE

Field study Report is an important part of the Management studies. It bears immense

important in the field of Business Management. It offers the student to explore the valuable

treasure of experience and an exposure to real work culture followed by the industries and

thereby helping the students to bridge gap between the theories explained in the book and

their practical implementations.

Field study plays an important role in future building of an individual so that we can

understand the real world in which he has to work in future. The theories greatly enhance our

knowledge and provide opportunities to blend theoretical with the practical knowledge where

researcher gets familiar with certain aspect of research. I feel proud to get myself to do Field

study at topic “CUSTOMER PERCEPTION AND BRANDS AWARENESS OF NIKE

SHOES”

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

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

The project moves on to the crux of the matter – the marketing plan to be followed by
Nike in India. Firstly, the objectives behind this plan and the core strategy are stated.
Customers to be eventually targeted are described and compared with competitors’
customer targets. After starting the objectives and reasoning behind them, the actual
marketing programs are described in detail. This includes aspects such as pricing,
advertising, promotion, sales, channels, and the company website. Suggestions are
made on each and every one of these aspects; improvements and innovations are
recommended.
The plan then goes on to the customer analysis section. The customer base is identified
and various segments are pointed out. Various criteria and factors have been taken into
consideration while segmenting the market. We have also tried to ascertain why
customers buy these products, how they choose, and what factors matter most when
making their decisions.

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

4
Table of Content

SR. NO PARTICULARS Page No

1 INTRODUCTION TO STUDY 4-8

2 LITERATURE REVIEW 9

3 RESEARCH METHODOLOGY 10-14

4 COMPANY PROFILE 15-30

5 DATA ANALYSIS & INTERPRETATION 31-40

6 RESULT & DISCUSSION 41

7 SUGGESTION AND RECOMMENDATIONS 42-46

8 LIMITATION & SCOPE OF FUTURE RESEARCH 47-48

9 CONCLUSION 49-52

10 BIBLIOGRAPHY 53

11 QUESTIONNAIRE 54-55

5
INTRODUCTION TO STUDY
The project has been a learning experience for me and would not have been possible
without the support and guidance of the above mentioned people. Needless to say, I alone
remain responsible for any error that might have crept into the pages, despite of my best
possible efforts to avoid them.
This marketing research project report has been written keeping in mind the Indian
operations of Nike – the global sports shoe giant. It aims first, at analyzing the sports shoe
industry of India and finding a place in it for Nike. It then sets out to describe the target
audience for the product range and finally suggests a host of marketing strategies and
activities that will help Puma to achieve its target of becoming the No-1 shoe brand in
India.
1.1 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 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
1.2 Objectives of the Study
To the main objective of this study is learn the strategic plan that has been written keeping in
mind the Indian operations of Nike – the global sports shoe giant.
It aims at analyzing the sports shoe industry India and finding a place in it for Nike.
To study target audience for the product range and finally suggests a host of marketing
strategies and activities that will help Nike to achieve its target of becoming #1 sport shoe
brand in india.
6
To understand the nature of problem faced by customers towards the various products of
NIKE.
To study the nature of customer satisfaction efforts implemented by NIKE for its customers.

Scope of the Study


The project report begins with a brief overview of the product category being dealt with,
namely premium quality shoes. It also dwells briefly on the history of the company and its
current position and activities. 
The project moves on to the crux of the matter – the marketing plan to be followed by Nike in
India. Firstly, the objectives behind this plan and the core strategy are stated. After stating the
objectives and reasoning behind them, the actual marketing programs are described in details.
This includes aspects such as pricing, advertising, promotion, sales, channels, and the
company website. Suggestions are made on each and every one of these aspects;
improvements and innovations are recommended.
The project report then goes on to the customer analysis section. The customer base is
identified and various segments are pointed out. Various criteria and factors have been taken
into consideration while segmenting the market. We have also tried to ascertain why
customers buy these products, how they choose, and what factors matter most when making
their decisions. 
The last few pages of this marketing research project deal with the various ways in which the
recommendations, once implemented, can be monitored and controlled.

Limitation of the Study


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

Due to limited time period and constrained working hours for most of the respondents, the
answers at times were vague enough to be ignored.

Geographical scope of the study was limited to a small area, which may not represent the
whole sector of India; Size of the sample is 50, which is, of course small in comparison to
entire population.
7
Due to limitation of time only few people were selected for the study. So the sample of
consumer was not enough to generalize finding of the study.

There can be many interpretations & explanations to the data collected. This is empirical
study and the research provides the explanation as understood by the researcher only.

The source of data for the study was primary data with the help of self-administered
questionnaire. Hence, the chance of biased response cannot be eliminated through all
necessary steps were taken to avoid the same.

The data taken from the secondary source like internet, newspaper, books may lack some
proper explanation or may be not properly interpreted.

The responses of customers are presented in a way convenient to the researcher and can be
interpreted in different ways.

LITERATURE REVIEW

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

8
competition. This marketing research project report has been written keeping in mind the
Indian operations of Nike Inc. – the global sports shoe giant. 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 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.

9
RESEARCH METHODOLOGY

CONCEPT OF RESEARCH METHODOLOGY

Research will comprise defining and redefining problems, formulating hypothesis or


suggested solutions, collecting, organizing and evaluating data; making deductions and
reaching conclusions and at last carefully testing the conclusions to determine whether they
fit the formulating. In short, the search for Knowledge through Objective and Systematic
method of finding solutions to a problem is Research. SAMPLE SIZE AND SAMPLING
TECHNIQUES: The number of items selected from the universe to represent the universe is
called size of the sample. It is not feasible to cover all the customers of NIKE. So for the
purpose of this study, a total of 50 respondents will be approached. The sampling technique
used for the study will be convenience sampling. DATA COLLECTION: For the study, both
primary and secondary data will be collected. For primary data, a questionnaire can be
developed and administered to the respondents who are the customers of NIKE in Delhi by
the way of interview method. For secondary data, existing literature in form of magazines,
papers, company literature, book, web sources will be consulted. Question relating to
customer behaviour towards Nike shoes can also be included. QUESTIONNAIRE: For
conducting the primary customer satisfaction survey for NIKE SHOES, a structured
questionnaire with multiple choices related to overall satisfaction level of customers, their
grievances related to products offered by NIKE, etc. will be asked. The questionnaire will be
administered using interview technique. QUESTIONNAIRE DESIGN FORMULATION
Under this method, list of questions pertaining to the survey will be prepared consumers of
shoes. Questionnaire will have structured type questions as well as unstructured type
questions. Structured objective type questions will be prepared for the respondents with fixed
response categories. Some of the questions will be of multiple-choice type. The questions
will have more than one alternative. RESEARCH INSTRUMENTS Selected instrument for
Data Collection for Online survey is Questionnaire. STEPS FOLLOWED IN COMPLETING
THE STUDY Internet sites containing information on Nike shoes & marketing will be
browsed. Sample survey will be conducted. Data will be thoroughly checked for error. DATA
PROCESSING METHODOLOGY Once the primary data will be collected, they will be
edited – inspected, corrected and modified. Tabulation – bring similar data together and
totalling them in meaningful categories. Questionnaires will be edited. The responses will be
thoroughly checked in home for incorrect, inconsequential or contradictions categories will

10
be developed only often the replies has been reviewed The collected data will be placed into
an order. Percentages of respondents answered similarly will be calculated and placed in a
table. Then it will be interpreted. This will involve drawing conclusion from the gathered
data. Interpretation changes the new information emerging from the analysis into information
that is pertinent or relevant to the study.

Research comprise defining and redefining problems, formulating hypothesis or suggested


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

RESEARCH PLAN
Research Design
Research design can be thought of as the structure of research – it is the "glue" that holds all of
the elements in a research project together.
A marketing research process cannot be completed without an effective research design. A
research design precisely specifies particular means and methods through which required
information can be collected for structuring the research as well as seeking specific practical
solutions to the problem.
According to the famous author Bernard S. Phillips:
“Research design is the blueprint for the collection, measurement and analysis of data. It aids
the scientist in allocation of his limited resources by posing crucial choices: Is the blueprint to
include the experiments, interviews, observations, analysis of records, stimulation or some
combination of these? Are the methods of data collection and research situation to be highly
structured? Is an intensive study of a small sample more effective than a less intensive study
of a large sample? Should the analysis be primarily qualitative or quantitative?”
According to Green & Tull in their book ‘Research for Marketing Decisions’;
“A research design is the specification of methods and procedures for acquiring the
information needed to structure or to solve problem. It is the overall operational pattern or
framework of the project that stipulates what information is to be collected from which
sources and by what procedures.”
Fred N. Kerlinger in “Foundations of Behavioural Research” defines research design as:
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“The plan, structure and strategy of investigation conceived so as to obtain answers to research
questions and to control variance.”
Therefore, it can be summarised that research design is one step prior to data collection.
It is clear from the above definitions that the basic purpose of research design is the right
investigation.

Exploratory research design


Exploratory research design is conducted frequently in cases where the problem is not clearly
defined and also in situations where focus on real scope of work is not clear. Here researcher
takes initiative to study the problem in detail and then generate hypothesis to be tested. This is
the initial research which is done before conclusive research is undertaken.
Exploratory research aids in determining the best research design, selection of subjects and
data collection method and sometimes it even summarises that the problem or issue doesn’t
exist.
Exploratory research is quite informal in nature. It relies on secondary research data like:
 Reviews from literature already available
 Qualitative approaches like friendly discussion with consumers, employees, competitors,
or with management
 Formal discussions like in depth interviews, pilot studies, case studies, face to face
interviews, focus groups and projective methods
Though the results of exploratory research are not usually conclusive but they help in taking
decisions properly in a given situation. However, lot of indications are given in the result of
qualitative research as to when, why, how, something happens but doesn’t make it clear how
many or how often.
In other words, this method is not a good representation of the sample data taken for research.

Conclusive research design


This type of research means providing information which can be useful in taking right kind of
decisions and/or reaching at right conclusion.
Conclusive research requires more formal design than the exploratory research. This research
is mostly quantitative in nature. It means the information can be easily counted and
summarised.

12
The main objective of this kind of research is to give reliable information and a clear picture
related to the population with the help of a valid research source or element. Testing
hypothesis is also conducted in this method.
Normally, this method relies on both primary data as well as secondary data. Primary data
denotes the data collected for the current study and the secondary data denotes the data used
from existing sources. Both the sources help in analysing a different kind of problem every
time than the original one.
There are mainly two types of conclusive research which you are going to study in the next
sections. These are:
 Descriptive or statistical research
 Causal research

Descriptive Research Design


Conclusive research design is subdivided into descriptive research and causal research. You
will study descriptive research design in this section.
Descriptive research is a commonly used type of conclusive research.
Descriptive studies are formal, rigid, well-structured and focused in nature.
This type of research involves the description of relationships between the number of variable
factors and working out conclusions.
Descriptive study starts with specific research questions where substantial information about
the research problem is known by conducting the pilot study. Thus, descriptive research means
a preconceived, formal and structured design to seek solution to a particular problem.
Descriptive Research is concerned with the ex-post facto analysis of related and inter-related
variables in real life situations. This analysis can be done on the basis of field study and
surveys.
The cross-sectional study is the most popular and widely used Descriptive
Research technique. It involves the collection of information from any given sample of
population elements only once. It is useful because it provides a quick snapshot of what's
going on with the variables of interest for our research problem.
Descriptive research studies require proper data analysis and inferences and the checklist of
effective data analysis is as follows:
 Mention the question number correctly.
 Mention headings, subheadings and other names correctly and sequentially.

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 Check information, the content of questions. The content should be able to generate
information needed to draw meaningful conclusions.
 Consider the reasons for including questions.
 Conduct primary analysis and identify information value.
 Conduct further analysis if required.
For example, most significant example of this type of research is Census which is used to
count the number of population in the country.
Firms normally use opinion poll method. This is also a part of this research design.
Descriptive Research can be further divided into ‘Cross-sectional Design’ and ‘Longitudinal
Design’ which you are going to study in next subsections.

DATA SOURCES
There are two types of data.
Source of primary data for the present study is collected through questionnaire and answered
by consumers of Nike shoes. The secondary data is collected from journals, books and through
Internet search.

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

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

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COMPANY PROFILE
Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and
worldwide marketing and sales of footwear, apparel, equipment, accessories and services. The company is headquartered
near Beaverton, Oregon, in the Portland metropolitan area. It is one of the world's largest suppliers of athletic shoes and
apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012
(ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was valued
at $19 billion, making it the most valuable brand among sports businesses.

The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight, and
officially became Nike, Inc. on May 30, 1971. 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 Blazers, Air
Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and subsidiaries including Brand Jordan, Hurley
International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and
previously owned Cole Haan and Umbro. 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.

Origins and history

A Nike Factory Store in Vaughan Mills

Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track athlete
Phil Knight and his coach Bill Bowerman in January 1964. The company initially operated as a distributor
for Japanese shoe maker Onitsuka Tiger (now ASICS), making most sales at track meets out of Knight's
automobile.

According to Otis Davis, a student athlete whom Bowerman coached at the University of Oregon, who
later went on to win two gold medals at the 1960 Summer Olympics, Bowerman made the first pair of
Nike shoes for him, contradicting a claim that they were made for Phil Knight. Says 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 make them from the waffle iron, and they were
mine."

15
In 1964, in its first year in business, BRS sold 1,300 pairs of Japanese running shoes grossing $8,000. By
1965 the fledgling company had acquired a full-time employee, and sales had reached $20,000. In 1966,
BRS opened its first retail store, located at 3107 Pico Boulevard in Santa Monica, California next to a
beauty salon, so its employees no longer needed to sell inventory from the back of their cars. In 1967, due
to rapidly increasing sales, BRS expanded retail and distribution operations on the East Coast, in
Wellesley, Massachusetts.

By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS prepared to launch
its own line of footwear, which 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.

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.

Together, Nike and Wieden+Kennedy have created 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 is planning to step down as chairman of Nike in 2016.

Acquisitions

Nike has acquired several apparel and footwear companies over the course of its history, some of which
have since been sold. Its first acquisition was the upscale footwear company Cole Haan in 1988, followed
by the purchase of Bauer Hockey in 1994. In 2002, Nike bought surf apparel company Hurley
International from founder Bob Hurley. In 2003, Nike paid US$309 million to acquire Converse, makers

16
of the Chuck Taylor All-Stars line of sneakers. The company acquired Starter in 2004 and Umbro, known
as the manufacturers of the England national football team's kit, in 2008.

In order to refocus on its core business lines, Nike began divesting of some of its subsidiaries in the
2000s. It sold Starter in 2007 and Bauer Hockey in 2008. The company sold Umbro in 2012 and Cole
Haan in 2013. As of 2013, Nike owns two key subsidiaries: Converse Inc. and Hurley International.

Finance

Nike Inc. will buy back $8 billion of Nike's class B stock in 4 years after the current $5 billion buyback
program is completed in second quarter of fiscal 2013. Up to September 2012, Nike Inc. has bought back
$10 billion of stock.

Nike was made a member of the Dow Jones Industrial Average in 2013, when it replaced Alcoa.

On December 19, 2013, Nike Inc.'s quarterly profit rose due to a 13 percent increase in global orders for
merchandise since April of that year. Future orders of shoes or clothes for delivery between December and
April, rose to $10.4 billion. Nike shares (NKE) rose 0.6 percent to $78.75 in extended trading.

In November 2015, Nike announced it would initiate a $12 billion share buyback, as well as a two-for-
one stock split, with shares to begin trading at the decreased price on December 24. The split will be the
seventh in company history.

On April 26, 2016, it was announced that Nike would release the Nike Air Force 180 "Olympic"
associated with the dream team of 1992. It will drop on July 7 at select Nike Sportswear retailers.

Products

A Nike brand athletic shoe

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A pair of Nike Air Jordan I basketball shoes

Sports equipment

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 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.
18
The 2010 Nike Pro Combat jersey collection were worn by teams from the following universities: Miami,
Alabama, Boise State University, Florida, Ohio State, Oregon State University, Texas Christian
University, Virginia Tech, West Virginia, and Pittsburgh. Teams will wear these jerseys in key matchups
as well as any time the athletic department deems it necessary.

Marketing strategy

Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and
college athletic teams.

Advertising

In 1982, Nike aired its first national television ads, created by newly formed ad agency Wieden+Kennedy
(W+K), during the broadcast of the New York Marathon. The Cannes Advertising Festival has named
Nike its Advertiser of the Year in 1994 and 2003, making it the first company to receive that honor twice.

Nike also has earned the Emmy Award for best commercial twice since the award was first created in the
1990s. The first was for "The Morning After," a satirical look at what a runner might face on the morning
of January 1, 2000 if every dire prediction about the Y2K problem came to fruition. The second was for a
2002 spot called "Move," which featured a series of famous and everyday athletes in a variety of athletic
pursuits.

Beatles song

Nike was criticized for its use of the Beatles song "Revolution" in a 1987 commercial against the wishes
of Apple Records, the Beatles' recording company. Nike paid US$250,000 to Capitol Records Inc., which
held the North American licensing rights to the recordings, for the right to use the Beatles' rendition for a
year.

Apple sued Nike Inc., Capitol Records Inc., EMI Records Inc. and Wieden+Kennedy for $15 million.[99]
Capitol-EMI countered by saying the lawsuit was "groundless" because Capitol had licensed the use of
"Revolution" with the "active support and encouragement of Yoko Ono, a shareholder and director of
Apple."

Nike discontinued airing ads featuring "Revolution" in March 1988. Yoko Ono later gave permission to
Nike to use John Lennon's "Instant Karma" in another advertisement.

POSITIONING

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Nike’s Punch line “Just do it” has enabled the company to create the image of an aggressive,
action-oriented company. Amateur as well as professional athletes perceive Nike as producing
high-quality shoes that help athletes perform to their maximum potential. They were firmly
rooted as performance shoes with innovative designs and technology. Also Nike’s number one
position was due in part to its product positioning.

BRANDING

Symbol as a brand: The most important aspect of a brand's name and symbol is that it silently
speaks everything about the company or product. Nike is the best example of how a symbol is
best utilized and exploited and its strong association with the products. Nike is symbolized by a
tick mark or something which is always right. The business card of a Nike employee has a tick
on it instead of the company name and still people make out the company where the person is
employed just by looking at the tick

Brand Extension: Nike has turned sneakers into something more – athletic tools. Over time,
many consumers have developed a mindset about the difference between Nike sneakers and any
other brand of sneakers. Now, many years later, Nike is exploring line extensions into other types
of clothing and footwear to bolster its brand against changing demographics and lifestyles

Brand Narration: Nike do not yell at the consumer to buy, buy, buy. They instead engage them
in a narrative that makes the consumer want to buy because they identify with narrative
components. Nike’s brand narrative prescribes the consumer to get out and exercise, “Just Do it”.
Buying Nike product is almost an after thought.

ADVERTISING STRATEGY:

Nike traditionally uses a highly visual format for its advertisements. These images capitalize on
consumer emotion and attempt to link personal value to the wide array of Nike products.
Advertising is never just about Nike, the brand. It is carefully constructed to draw in consumers.
In one recent campaign, famous Nike-sponsored athletes showed their wounds from competition,
including scars, missing, fingers, and knocked-out teeth. By doing so, Nike connected its own
products with the physical and emotional side of athletic competition. Besides this, the Nike
swoosh symbol is a highly recognized trademark that elicits these desired effects because it is an
episode encoded in the consumers brain. The athletes who deliver its message are a major factor
responsible for promotion of the brand. For example, Michael Jordan is generally considered to
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be the best basketball player in the history of the game. At a time when Nike profits were
sinking, Knight selected Jordan to re-establish the company’s image. Approximately 35 ads later,
Jordan was the most popular athlete in the country, according to New York based marketing
Evaluations. A number of other famous athletes have elicited a tremendous response from
customers. Including tennis players John McEnore and Andre Agassi, basketball player Nolan
Ryan., football’s Deion Sanders, track stars Carl Lewis and Alberto Salazar, and basketball
players Charle Barkley and Scottie Pippen. The young Tiger Woods has a $100 million contract
with Nike. The charisma, talent, expertise, and personality of such athletes deliver Nike’s
message. Nike has also expanded its marketing methods by teaming with MTV2 to produce
street basketball series.

GAINING POWER FROM COMBINING STRATEGIES

With the benefits of improved performance, linked to aspiration of becoming a top athelete at
various target user groups , together with emotion in advertising materials and athlete
endorsement, Nike have enhanced its position in the footwear industry.

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NIKE IN EUROPE

NIKE’S EUROPEAN HISTORY

The same year that Nike overtook Adidas as the number one athletic shoe company in the U.S. --
1980 -- Phil Knight dispatched five employees to Europe to establish a presence for the U.S. shoe
manufacturer there. Because of its favorable tax and business operation laws, the group set up an
office in Amsterdam and began its mission to establish the Nike name and brand. Though Nike
had succeeded in breaking Adidas’ dominance in the U.S., taking over as the leader in Adidas’
home arena would be a greater challenge.

INITIAL GROWTH

In the early 1980’s, the most popular sports in Europe were soccer, track and field, and tennis. If
Nike wanted to have a significant presence in Europe, the company would have to establish its
name in each of these sports in each of Europe’s four primary markets -- Germany, France,
England and Italy -- which accounted for the bulk of the European sports shoe and apparel sales.

Besides these difficulties with their marketing intermediaries, Nike faced formidable competition
in Europe. Adidas, the German shoe company, dominated the European sports market. Together
with Puma -- a spin-off of Adidas -- the two companies controlled over 75% of Europe’s athletic
shoe and apparel market. For decades, the two companies had developed the grassroots
allegiance of local sports teams, particularly soccer, track and field, tennis, and rugby. Both had
endorsement contracts with top European athletes in each of these sports and sponsored many
local teams in cities and towns across Europe. Adidas, in particular, was respected for the quality
of its shoes and had earned the reputation as the European performance brand. For any company
to establish a presence in Germany -- Europe’s largest market -- in the face of these two
companies was considered nearly impossible.

Years, Nike struggled to build its presence in Europe. By the end of 1987, Nike’s European
revenues had grown to $150 million, representing 5% of the European athletic shoe market and a
growing percentage of Nike’s revenues. Compared to its U.S. position, however, Nike’s
penetration of the European market was comparatively insignificant. Perhaps even more
disturbing to Nike was its inability to control the growth of its brand. In most countries, the Nike
distributor who controlled marketing and advertising rights were not necessarily highly
motivated to sell Nike’s. To overcome this limitation -- but still maintain its quality image --
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Nike restricted its product line to primarily high-end, higher priced shoes. In doing so, the
company forfeited volume and hence market share. Though the company also sold some low-
end, relatively inexpensive shoes, it had no product offerings for the expansive "middle market."
As a result, many European consumers saw Nike as an aggressive, expensive American brand.

Because Nike distributors controlled advertising in their local markets, each continued to develop
their own interpretation of the Nike brand and identity programs. While Nike productively
embarked on the “Just Do It” umbrella campaign in the U.S., Grey Advertising -- the agency that
managed the Nike account in five countries -- was developing separate, and not necessarily
reinforcing, ad campaigns in each European country. Nike also did not have the same means of
displaying their shoes and retailing them to customers as in the U.S. -- athletic shoe specialty
stores did not really exist in Europe.

In the German market and, to a lesser extent, the French market, the result was that Nike was
pushing product into the marketplace rather than creating demand from the bottom up, resulting
in frequent close-out sales with discounts of up to 35%. After a couple of seasons, the
marketplace was saturated with close-out product, and forecasting problems led Nike to “choke
in inventory” in 1993, according to Martin Coles, Vice President and General Manager for
Europe. Coles took over as GM of Europe just as Nike’s sales took a downturn after peaking at
$1.1 billion in 1993.

Without question, Europe represented a tremendous growth opportunity for Nike. Moreover, as a
general rule, Europeans were slower to embrace sneakers as off-court shoes and were more likely
to wear fine leather shoes even in casual settings. Either on or off the court, Europeans just
needed fewer athletic shoes. The image of athletic shoes was changing, however, and sneakers
were no longer a dead giveaway that a person was more likely than not to be an American tourist.
Youths especially seemed captivated by the “American” image of Nike and Reebok. As a result,
some progress had been made in Europe. Adidas -- with over $1.5 billion in revenues -- still had
more than double the market share of Nike in Europe. Though Adidas still dominated the
European market, Nike made significant inroads, and the German giant and its counterpart,
Puma, had lost market share to Nike and Reebok.

To realize its goal of being the number one sport and fitness company in the world, Nike had to
dominate Europe. Its two main competitors, Adidas and Reebok, posed very different
challenges.

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Building on the success of its “Just Do It” campaign in the U.S., Nike attempted to introduce the
tag line into its European advertising in the Spring of 1993. Nike hoped that this campaign
would successfully communicate Nike’s core values of authenticity, performance and athletics,
and help establish an emotional connection with European consumers through sports. Nike
allocated $80-$100 million to European advertising and promotion. Four commercials showing
professional athletes engaged in competitive sports were translated and shown in 52 local
markets. The European consumers, however, found them intimidating, aggressive and
unreachable. To reach its growth goals in Europe, Nike needed to find a way to change
consumers’ perceptions of Nike as an expensive, aggressive American brand.

FOCUSING IN EUROPE

The first thing Coles did to turn around Europe was to gather the European management team,
which included the functional heads at the European regional headquarters in the Netherlands,
plus the General Managers from each of the Nike-owned European countries. The group
discussed what had gone wrong, without hiding behind reasons like the recession, bad weather,
and the failure to catch on with brown shoes when they hit the market.

The team expanded the set of reasons for the sluggishness in the European market. Nike had
focused on volume sales of components like T-shirts, fleece and shorts rather than their technical
and performance oriented product. Performance was what differentiated Nike from their
competition, but Nike had not used performance in their positioning. Instead, the company had
been following closely what Reebok and Adidas were doing, and had tried to fight the
competition instead of having confidence in their own brand. Operating each country as an
independent unit had led to fragmented efforts.

EUROPEAN MARKET CONDITION

European environmental conditions have not changed much since Nike entered the market in
1980. The liberal business environment has remained. The region is regulated with strong social
laws. While some smaller countries enjoy more favorable tax laws, conditions in general have
been relatively stable, even through bull and bear markets. The region has strong intellectual
property protection and contract enforcement laws. This makes the European market a highly
favorable place for Nike to enter in light of the distinctiveness in language and some cultural
differences. Germany, France, Italy, and Spain accounted for the bulk of the European sports
shoe and apparel sales.
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Currency fluctuations in overseas markets are inevitable. Nike’s profit margin was hurt by the
strong U.S. dollar against European currencies in the 1990’s.

COMPETITION

Adidas and Puma

Besides the difficulties with its marketing intermediaries, Nike faced formidable competition in
Europe. Adidas, the German shoe company, dominated the European sports market. Together
with Puma, a spin-off of Adidas, the two companies controlled over 75% of Europe’s athletic
shoe and apparel market. For decades, the two companies had developed the grassroots
allegiance of local sports teams; in particular, soccer, track and field, tennis, and rugby. They
both had endorsements contracts with top European athletes in each of these sports and
sponsored many local teams in cities and towns across Europe. Adidas, in particular, was
respected for the quality of its shoes and had earned the reputation as the European performance
brand.

Reebok

Reebok sold its shoes direct to retailers through seventeen independent sales organizations.
Reebok followed a limited distribution strategy. Its shoes were sold only through specialty
athletic retailers, sporting goods stores, and department stores. With the exception of Britain,
Sweden, and Denmark, Reebok had relatively little success in Europe.

DISTRIBUTION CHANNEL

Before 1980s, Nike distribution strategy of sports footwear & clothing in Europe - work through
distributors & select local partners in each country. In 1980s, due to market growth, Nike decided
to buy up its distributors & converted them into wholly owned subsidiaries But each distributor
operated autonomously, each local warehouse had its own logistics infrastructure & its own sales
force, ordered Product individually & controlled their own stock. Distribution and product
delivery to the customer also requires a global level focus, as competitors exist globally and in
order to compete effectively, your product must be available within the same competitive
markets.

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Centralizing European distribution: In 1992, Nike decided to reduce no. of its warehouses in
Europe from 22 to just one in Belgium. The European Distribution Center (EDC) receives. Nike
products from all over the world & serves retail store across Europe.

SEGMENTING

One of the problems Nike had in Europe was that only a limited part of the company’s product
line was offered to retailers in each country. Each country would make a different selection based
on their perceptions of the local consumer and the size of their warehouse, resulting in widely
differing Nike offerings across Europe. An interesting case was the Air Max B/W, a great
running shoe that sold well in the UK and France. The shoe was not offered to the German trade
because the German team didn’t feel it was right for their marketplace. Interestingly enough,
Foot Locker, which had a global account, was able to offer the Air Max B/W in their German
stores, and it was the hottest selling shoe on the shelves. The perception that the German
consumer was different was just not correct.

TARGETING

Nike needed to start understanding that their consumers really were, and to look for similarities
rather than differences that existed between countries. European youth, which was Nike’s target
audience, were probably more connected than people realized; kids in the U.K., the Nordic
countries and Germany listened to the same music, they loved the same sports, and they admired
the same sports stars.

Nike decided that they had to offer a complete product line to the whole European market. The
product line was pared down to a common European line. A centralized distribution center was
built in Belgium to service the whole European market, replacing 30 warehouses around Europe.
A new ordering system was implemented by tapping into Nike’s U.S. computer system, to create
not only European compatibility but U.S. compatibility as well.

The goal was to give consumers the same experience of the Nike brand throughout Europe. Nike
would concentrate on the same categories around Europe—soccer, running, basketball and tennis
—and the same age groups. The same basic marketing message would be used, although there
was more latitude in localizing advertising copy, which was often difficult to translate across
cultures. Finally, Nike would focus on technology and performance. It was important both that
the company delivered a product benefit in everything they did, and that they explained the
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benefit to the consumers. The F.I.T. technologies in apparel, for example, provided superior
performance through advanced materials.

POSITIONING: Powerful Associations with Athletes

To overcome the fashion image, Nike started from the bottom and developed the Nike brand in
sports relevant to the European market, especially soccer. A grassroots approach was needed to
build credibility and convince consumers of the authenticity of the Nike brand, and Nike got
more actively involved as sponsor of soccer youth leagues, local clubs and national teams. One
of the events that Nike sponsored was the Premier Cup, an under-14 European soccer
tournament. Another was the Tour de France cycle race.

In many cases, Nike could use their global stars for category-specific advertising: for example,
Michael Jordan was relevant to consumers around the world. However, Nike also needed athletic
endorsers who were locally relevant. Using local sports heroes was problematic; many of them
were unknown outside their home country, and would not be effective in pan-European
campaigns. Nike wants to establish itself as a perfect sports brand.

Nike was positioned as an authentic sports brand with a track and field/running heritage; in
Germany, Holland, France, Spain and Italy, Nike was very much a fashion brand, and that image
had spilled over into Denmark. The different brand perceptions had been a result of different
marketing strategies.

CAMPAIGN

In the UK and the Nordic countries, Nike had focused on grassroots work, and had a strong
presence at sports events and with athletes. In Germany, on the other hand, marketing was almost
exclusively advertising—99% of the marketing budget was spent on TV, video, cinema and
radio, and almost nothing on sports promotion. Nike’s advertising was a mix of U.S. campaigns
and local work. In some of the campaigns, Nike had come across as too aggressive. They were
too American, and were pushing athletic competition too far for their European audience.

MARKETING STRATEGY:

An important part of the new strategy in Europe was to change the relationship with retailers.
Nike wanted to grow the proportion of its business with the larger, specialized sports retailers,
and shrink the proportion of business with smaller, mom and pop stores. The sports retail trade
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in Europe was not as developed as that of the U.S., but this was changing as people began to
realize its potential. Retailers like JD Sports in the U.K. and Stadium in Sweden used some
sophisticated merchandising concepts, and U.S. chains like Foot Locker had established a
presence. Nike also wanted to move out of the transactional mode and start dealing with their key
accounts like business partners. Coles described the new relationship:

Instead of Nike walking into the store and asking “What would you like to buy today?” the Nike
salesperson would say: Here’s what we’re going to sell through your store this season, here are
the product types, here’s how we’re going to merchandise the product types, here’s the marketing
effort that’s going behind it, here’s the athlete that’s going to be wearing that product by this
date, and here’s the new color product that we’re going to flow in by the second half of the
season. What we come up with is a totally integrated marketing plan.

Nike worked with their key accounts to help them understand concepts like multiple season
selling (the introduction of product throughout the year rather than just in two seasons),
assortment planning (selecting product depending on the type of store), and the Futures program.
In 1993, the Futures program was introduced in Europe; the program asked the retailers to order
the bulk of their product six months in advance, and in return, promised them guaranteed
delivery and a discount of 5-13%. Initially, the program did not go over well with retailers,
especially in Germany where retailers could buy product from Adidas at any time. However,
most of them saw the advantages once Nike explained to the European retailers why they were
using Futures and how it would guarantee availability. Germany was the exception, where it was
a battle both against an entrenched retailer base and sometimes against Nike’s own staff, who
didn’t believe in the concept themselves.

The result of the increased coordination and the spreading of best practices throughout Europe
has been a stronger organization. People now feel as though they are part of a larger organization,
sharing the Nike culture of teamwork, competitiveness and honesty. They are more confident as
their competency increases; they understand the brand; they understand how Nike talks about
profitability; they can read an income statement; and they are in control of the technologies that
Nike uses.

Key Success Factors and Critical Issues

Key success factors of Nike are:

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One of a kind- It provides unique value to customers having its own look/ custom products. We
know you- It knows as well as understand people’s stories/ understand athletes needs Access- Its
products are found everywhere
Design- It has recognizable, respected logo, shoe and clothing aesthetics Convenience- It has
online shopping, worldwide retailers.
Nike has successful growth collaborating with other companies within sport and other fitness
industry.

Having Stylist features and innovative products which includes;


" Different colors and designs of products
" It have different products one cannot fit other.
" It has silent alarm, water proof products, and sleep monitoring of its
products
" It is having wireless syncing (android device)

Financial sustainability of Nike comprises of;


" Strong history of alliances as having strong partnership with Apple. " It has high budget in
marketing.
" Having ability to develop new and innovative products in house with minimal risk.
" Nike was the first one in the market in terms of experience and Technology.

Having successful business growth in terms of internal and external analysis, market position,
competitors, products and organizational structure.
The success lean to three things; Leadership, people and processes which provide quality
products timely (Nike.inc., 2014).

Key critical issues


One main issue of Nike corporation is it is leading and planning without proper
management, the company is suffering from child hood labor.
It has negative media attention due to which it may lose reputation.
Has fault of poor factory conditions and environmental problems.

29
It has been blamed of abandoning sites.
The Nike products have become equal with slave wage, they only pay worker with minimum
wage from which they can only fulfill their basic necessities, forced overtime and subjective
abuse.
Suppliers are having overlapped and conflicting issues from diverse customers so can be issue for
Nike outsourcing strategy. (Wilsey, M., & Lichtig, S.)
Marketing Strategy.

RESULTS

Measured as Brand Intent to Purchase, Nike is the leader in almost all age groups against both
Reebok and Adidas (the exception being older women, where Reebok is on top). Nike considers
Adidas its strongest competitor, but Reebok has also had some placement success with products
such as the DMX shoe. Fila looks to be fading, although Hilfiger and Polo are new entrants
focused on the fashion side. Nike’s goal is to bring Indian consumption to the same level as the
other Asian countries.

30
DATA ANALYSIS AND INTERPRETATION

1. Do you like Nike footwear products? Why or Why not?

(a) Yes
(b) No

The following results were observed:

a) 88.4% people said Yes


b) 11.6% people said No

INTERPRETATION

Therefore, it is observed that most of the respondents like NIKE products

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2. Did you buyed nike footwear products?

(a) Yes
(b) No

The following results were observed:

(a) 92% people said Yes


(b) 8% people said No

100 92
80
60
Series1
40
20 8
0
Yes No
Series1 92 8

INTERPRETATION

Therefore, it is observed that most respondents have buyed Nike footwear

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3. Why do you buy nike footwear product?

(a) High quality


(b) Brand +Trendy pursuer
(c) Other

The following results were observed:

(a) 36% people said High Quality


(b) 62% people said Brand + Trendy pursuer
(c) 2% people said others

INTERPRETATION

Therefore, it is observed that most People buy Nike footwear because Of its Brand and
Trendy looks

4. What type of sports do you like?


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(a) Soccer
(b) Basketball
(c) Running
(d) Other

The following results were observed:

a) 28% people said Soccer


b) 42% people said Basketball
c) 17% people said Running
d) 13% people said others

INTERPRETATION

Therefore, it is observed that Basketball is the most likely sport.

5. If you want to buy a sports footwear, which one is your best choice?
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(a) Nike
(b) Reebok
(c) Addidas
(d) Others

The following results were observed:

a) 32% people said Nike


b) 34.2% people said Reebok
c) 24.6% people said Addidas
d) 9.2% people said others

INTERPRETATION

Therefore, it is observed that Reebok is the most demanded footwear

6. What kind of nike products do you buy?

(a) Footwear
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(b) Clothes
(c) Accessories
(d) Other

The following results were observed:

a) 48% people said Footwear


b) 46% people said Clothes
c) 4% people said Accessories
d) 2% people said Others

INTERPRETATION
Therefore, it is observed that most saleable item of Nike is Footwear

7. Do you think prices of nike footwear is expensive?

36
(a) Yes
(b) N

The following results were observed:

a) 58% people said Footwear


b) 42% people said Clothes

INTERPRETATION

Therefore, it is observed that most people think Nike footwear is Expensive.

8. Where is the best place to reach you with Nike advertisement?

(a) Television
(b) Newspaper
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(c) Magazine
(d) Internet

The following results were observed:

a) 68% people said Footwear


b) 8% people said Clothes
c) 19% people said Accessories
d) 5% people said Others

INTERPRETATION

Therefore, it is observed that Television is the most reachable Medium

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9.How often do you buy nike products?

(a) Daily
(b) Weekly
(c) Monthly
(d) Yearly

The following results were observed:

a) 0% people said Daily


b) 0% people said Weekly
c) 14% people said Monthly
d) 85% people said Yearly

INTERPRETATION

Therefore, it is observed that people buy Nike products once in a Year.

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10. How many times do you watch nike TV adverstisment in one month?

(a) 0 times
(b) 1-5 times
(c) 6-10 times
(d) 11-15 times

The following results were observed:

a) 56% people said 0 Times


b) 34% people said 1-5 Times
c) 6% people said 6-10 Times
d) 4% people said 11-15 Times

INTERPRETATION

Therefore, it is observed that people haven’t watched Nike


Advertisment in a month.
RESULT & DISCUSSION

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Nike has been creative since the start. It has been pushing the technological boundaries of
innovation to offer its customers new products and also differentiate itself from its competitors.
Somewhere in its evolution, Nike also realised the importance of hi-tech gadgets in day-today lives.
So it started to combine new products with hi-tech solutions to give unconventional capabilities to a
customer of sportswear.

Nike was also quick to seize the opportunity offered by social media to engage with a wider
customer base so much so that it is now able to link its new hi-tech gadgets to social media
platforms. The power of such customer contact is phenomenal as it gives greater visibility in a
single click, generates interactions among customers and gives the company an opportunity to
collect info about customers' choices and preferences. It also gives endless chances for customer
segmentation and product differentiation, the pillars of any marketing strategy.

Measured as Brand Intent to Purchase, Nike is the leader in almost all age groups against both
Reebok and Adidas (the exception being older women, where Reebok is on top). Nike considers
Adidas its strongest competitor, but Reebok has also had some placement success with products
such as the DMX shoe. Fila looks to be fading, although Hilfiger and Polo are new entrants focused
on the fashion side. Nike’s goal is to bring Indian consumption to the same level as the other Asian
countries.

41
SUGGESTION & RECOMMENDATION

SUGGESTION
Department stores are the prime sales and marketing channel for leather consumer goods. In addition, store decorations
and product displays should be designed to create a strong first impression. Seasonal promotion campaigns, like special
discounts and advertisements, could be employed. New lines of collections should be introduced for festivals.

In addition to promotional activities in shopping malls and department stores, discounts and TV commercials are
considered effective channels for promotion. It is advisable to pay attention to the affordability of customers in different
cities, while setting price points for different product categories. Meanwhile, leather shoes offer better growth potential.

Popular materials used for leather consumer goods include bovine skin, goat/kid/lamb/sheep skin and crocodile skin.
Regarding colors, black is by far most sought-after with dark brown in second place.

Due to their growing spending power, the rising middle class should be the target of Hong Kong's sellers of leather
consumer goods. Hong Kong companies should put more emphasis on products for business use. In addition, it is useful
to introduce appropriate designs that cater for the tastes of the middles class.

Double Click 2006 Consumer Email Study October 2006, the fourth of Double-Click annual consumer email studies
points to an increasing sophistication in consumer usage of email functionality and a corresponding complexity of
purchasing behavior. The Spam crisis continues to affect consumer behavior online but does not necessarily cloud
consumer receptiveness to legitimate marketers: an overwhelming majority of online consumers receive offers by email
and have made a purchase online or offline as a result. Consumers are using available tools to limit spam and are
employing operate email accounts for purchasing, all in attempts to increase control and improve their email experience.
Working with Beyond Interactive and the NFO//net source panel of 900,000 US consumers, polled 1,000consumers via
email from July 30 - August5, 2007. All respondents recruited use email/internet 1+ times per week, which reflects the
usage of the larger online population (94% of the 18+ online population according to Nielsen, 2006).There was an equal
segmentation of men and women and the average age was 42.7.This is the fourth of an annual series of consumer
research studies and trending information was derived using the data from previous years. The sample mirrored
previous studies and is reflective of the online population as a whole.

Key Findings The majority of consumers receive some kind of marketing email with special offers from retailers most
common Sender recognition most impacts operates, while content relevance increases likeliness to purchase Frequency
ascertain category, are very specific to the category of email but vary greatly from one consumer to the next; frequency
of permission based email is clearly a great concern to consumers and has an impact on what they consider to be Spam.
Email drives multi-channel purchases and has an immediate as well as a latent Nearly 64% of consumers cite the line as
the most important factor in opening an email.2006 Consumer Email Study impact. It drives consumers most often to
the online channel but also results in retail and catalog sales. Consumers have become sophisticated in their use of ISP-
supplied tools to limits Pam and in their usage of various email addresses to manage their varied email activities Home

42
and free email addresses are most often used for purchasing, within email address specifically designated for that usage.
Men and women have radically different ideas of what spam is and different purchasing behavior related to Spam.
Women are more receptive to promotions and discounts and correspondingly more interested in and tolerant of
marketing emails than men. Receptiveness to Marketer Emails. The vast majority (91%) of consumers receive some
form of permission-based email with 57.2% receiving special offers from online merchants, 55.4% receiving them from
traditional retailers, and 48.5%receiving them from catalogers. Other popular types of marketing emails included
account statements/online bill payment information (received by 49.8% of respondents), travel emails (43.3%), coupons
for groceries (40.0%), health (41.1%) and household tips/recipes/crafts (42.1%). Of categories in which consumers do
not currently receive e-mails, respondents are most interested in receiving grocery coupons (cited by 22.1%) and
household tips/recipes/crafts (13.6%).Other categories of strong interest were electronics and computer
software/hardware, 13.8% and apparel/shoes at12.3%. Permission-based email also continues to be the preferred
method of contact from the favorite retailer regarding new products, services or promotions (preferred by 59% of
consumers), while only 32.1% preferred direct mail. Sender Recognition, Content Relevance Most Impacts Purchasing
consideration behavior, the line continues to be the most compelling reason to open permission-based email, cited by
63.3% of all respondents, an increase from 59.9% in2005. This speaks to the growing significance of user recognition of
sender and the power of brands — even more important in an era of spam. Of all types of subject lines, discount offers
are the primary motivational factor for opening permission based email (increased to59.5% of all respondents from
56.7% in 2007), while compelling news and information fell from 57.6% of all respondents to 48.6% in 2006.Special
offers from retailers/catalogers received by at least 50% of respondents

When asked what most compelled them to take action on a permission-based email, product I needed at the time, a
reflection of the relevancy of the offer, was noted by37.8% of all respondents, outranking the next most common
choice, special offer or discount, cited by 35.0% of respondents. Likeliness to respond could be increased if an email
contains relevant information (noted by 67.3% of respondents) and contains information based on interests specified to
that company. Consumers found recommendations based on past purchasing behavior less appealing (noted by only
28.1% of all respondents).Consumers clearly want a degree of control over what marketers send them and would like
their specified interests taken into account. Consumers are also very specific in their frequency preferences, with news
and weather most often preferred daily, special offers from retailers, online merchants and catalogers most often
preferred weekly, and account statements/bill payment communications monthly. However, there’re significant numbers
of consumers who vary in these preferences, with just over20% of those who receive special offers and discounts from
retailers, online merchants and catalogers preferring the communications to come monthly. In accordance with specified
frequency statements, when asked what concerned them about their inboxes, frequency of permission-based email was
second only to Spam, cited by 42% of respondents. This danger is even more pronounced considering only 28% noted
frequency of permission-based email as a concern in2006. Clearly marketers need to test for optimal frequency and
solicit customer preferences. Email Drives Multi-Channel Purchases But at the Expense of Offline Retail Permission-
based emails clearly drives purchases. Sixty-seven percent of respondents received an email offer from a Consumers
take action on emails corresponding to product need Relevant content, information specified by user increases likeliness
to respond 2007 Consumer Email Study, Cataloger or online merchant that resulted in a purchase. Top purchasing
categories were: apparel/shoes at 83.4%making a purchase, computer software/hardware at 81.4%, gifts/flower sat

43
77.6%, travel at 77.2%, electronics at77.1% and food at 71.7%. The only under performing category was financial
products and services at 41.5%, which could relate to the high consideration necessary for these products, the incidence
of spam in this category or lack of interest due to the economy. The channel purchased in as a result of permission-
based email is highly specific to the category of product: travel had the highest incidence of online purchase at70% with
only 13% purchasing by catalog/phone/mail, while apparel/shoes had a relatively high incidence of online purchase,
58% with 41% purchasing via offline retail and 23% via catalog, and over the counter and prescription drugs had equal
levels of online and retail purchase at 32%.Email marketing promotes use of the online channel. In comparing the
typical channel purchase behavior of respondents in a variety of categories to where they were most likely to purchase
after receiving permission based email, the results show that respondents are more likely than usual to use the online
channel for purchasing after receiving a permission based email; this is true in all categories except financial services. In
apparel/shoes, where 31% would typically buy online, a permission-based email resulted in an increase of online
channel usage to 58%, gifts/flowers saw online channel lift from 45%to 61%, and electronics from 45% to 60%.For
consumers who receive email offers from retailers in the apparel/shoes category, email marketing does increase use of
the catalog channel. Of those who receive emails from catalogers, 16% reported that they typically bought via catalogs.
This number rose to 23% saying they had purchased though a catalog after receiving permission based email. This
example illustrates the direct connection between catalog drops with effectively sequenced email marketing used as a
purchase driver. The Latent Impact of Email Marketing Most action taken in response to email marketing does not
result immediately from the click. While 27% clicked through and made a purchase during that same online session, an
even greater number, 33.6%, clicked through to find out more information, then purchased online at a later date. An
additional 12.2% clicked through to find more information and then purchase offline through catalog or retail.
Permission-based offers generate sales.

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

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

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

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RECOMMENDATIONS

To explore the mainland market, Hong Kong companies should position themselves in areas in
which they are strong. From the viewpoint of mainland consumers, Hong Kong's leather consumer
goods are considered competitive in the high-end and mid-range. Mainland consumers are brand
conscious, and it is vital to promote own brands which have clear image.
This survey also shows that Hong Kong products are preferred for their design/style and quality.
Bearing these in mind, Hong Kong companies should never compromise on quality, and they
should allocate more resources to product design, selection of material and craftsmanship.
To conclude, it can be said that through the global sports retail industry has reached its maturity,
but the Indian sports retail industry is still at its infancy. But with the huge potentiality existing in
the Indian market, it is expected to grow in leaps and bounds in the future.

 The prices of the shoes must be reduced to increase sales.


 New lines of collections should be introduces for festivals.
 The stores must be decorated properly.
 Seasonal promotion campaigns, like special discounts & advertisements (magazines, internet,
etc.), could be employed.
 Product displays should be designed to create a strong first impression.
 More number of outlets should be opened to reach to all types of customers in all the regions.
 More variants should be introduced in the accessories section.

46
LIMITATION AND SCOPE OF FUTURE RESEARCH

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

Due to limited time period and constrained working hours for most of the respondents, the
answers at times were vague enough to be ignored. The collected data are placed into an order.
Percentages of respondents answered similarly are calculated and placed in a table. Then this is
interpreted. This involved drawing conclusion from the gathered data. Interpretation changes the
new information immerging from the analysis into information that is pertinent or relevant to the
study.

Due to limited time period and constrained working hours for most of the respondents, the
answers at times were vague enough to be ignored.

Geographical scope of the study was limited to a small area, which may not represent the whole
sector of India; Size of the sample is 50, which is, of course small in comparison to entire
population.

Due to limitation of time only few people were selected for the study. So the sample of consumer
was not enough to generalize finding of the study.

There can be many interpretations & explanations to the data collected. This is empirical study
and the research provides the explanation as understood by the researcher only.

The source of data for the study was primary data with the help of self-administered
questionnaire. Hence, the chance of biased response cannot be eliminated through all necessary
steps were taken to avoid the same.

The data taken from the secondary source like internet, newspaper, books may lack some proper
explanation or may be not properly interpreted.

The responses of customers are presented in a way convenient to the researcher and can be
interpreted in different ways.

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SCOPE OF FUTURE RESEARCH

This study opens up new grounds for further research. Further studies can address the following
issues to have more insights on the subject.
Studies can be done to find out the effect of Sales Promotions on Consumer Based Brand Equity
Scale incorporating the concept of brand personality proposed by Aaker (1995) and shown in the
scale developed by Papu, Questar and Cooksey (2005). In this study, Brand Awareness and
Associations were clubbed together but they could be separated in future studies.
Further, studies can extend to other Product categories and classes which may lead to the
generalisation of the findings of the study. The concept of Sales Promotion and Brand Equity in
the service sector could also be examined in detail.
A similar study of this sort could be conducted during a period when
Sales Promotion is on instead of doing it in a simulated environment like in this study. This might
reveal possible differences in consumer responses between real life situation and simulated
environment.
The study among heterogeneous groups, having different demographic characteristics pertaining
to Sales Promotion and Consumer Based Brand
Equity and with respect to different products and services will be an added scope for further
research.
Similarly, further research might concentrate to find out the differences, if any, that exists between
homogenous groups at different geographical areas.
Among the different segments in the market − economic, popular or premium - which are more
prone to Sales Promotions and what effects they have on
Consumer Based Brand Equity will be another interesting area of research.
Another interesting dimension will be to find out the differential effect of
Sales Promotions between Indian and foreign brands (country-of-origin effect) as well as national
vs. private labels on Consumer Based Brand Equity.

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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 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

49
most places around the world. Catch phrases like, "Just Do It," and symbols like the Nike "Swoosh,"
couple with sports icons to serve as instant reminders of the Nike Empire. It is about time that this
competency is leveraged on to India.

Two key attributes of a distinctive competency are its inability to be easily replicated and the value
or benefit it offers to consumers. Few companies have such a recognizable image and the resources
to promote it. This ultimately translates into added value for consumers. The public benefits from the
strength of Nike’s image at the point of purchase. For decades, consumers have come to associate the
Nike image with quality products. By associating star athletes and motivational slogans like, "Just
Do It," with marketing campaigns that emphasize fitness, competition, and sportsmanship,
consumers identify their purchases with the prospect of achieving greatness. Younger consumers
especially benefit from this positive influence. This image is something that competing companies
can not easily duplicate by simply enhancing the physical characteristics of their products.

Nike’s vision is to remain the leader in the industry. The company will continue to produce the
quality products that have been provided in the past. Most importantly, Nike will continue to meet
the ever-changing needs of the customers, through product innovation. In the past, the company has
utilized product differentiation as the main competitive strategy. As Nike’s reputation dictates, it will
continue to place emphasis in this area. Nike has built its business on providing products that rise
above all others and this has made it the worldwide success that it is today.

Nike is known for its technologically advanced products and is the leader in this area. This allows
Nike’s products to stand out from the rest. The company’s focus also allows it to maintain a
somewhat narrow niche that enables it to effectively capture the needs and wants of the consumers.
An example of Nike’s superior and innovative technology is its new range of shoes called “Air
Presto”. Termed as the first T-shirt for the feet, these shoes can take the shape and size of the
wearer’s feet. Unlike regular shoes it comes are sizes like XL, L, M, S and XS. Each of these sizes
can accommodate three conventional foot sizes. Nike will continue to produce such path-breaking
products in the future and stay a step ahead of its competitors. Nike will also focus on making a
strong effort in price leadership. Nike’s products in the past have been concentrated in the higher end
of the pricing category. An entrance will now be made into lower price categories with these quality
products. This will enable Nike to capture an even greater hold on market share. Presently, the only
form of customer relationship management activity that Nike has adopted in India is product

50
warranty. Nike shoes come with a six-month warranty. If the shoe is found to be defective or wears
out within six months due to no fault of the wearer, Nike replaces the product. This is only the first
step and more needs to be dome in this area.
Being a company that always strives towards excellence, Nike needs to know exactly what its
customers think about their products. A good way of assessing this would be to have the customer
fill in a form at the point of purchase. The form will ask the customer his / her opinion on the product
as well as the showroom. Suggestions and comments would be welcome. However, care must be
taken to ensure that these forms are not too cumbersome and do not take up too much of the
customer’s time. Surveys have indicated that normally people don’t mind filling in forms as long as
they are not too long.

Another good method would be to introduce a system of customer points. Every time a customer
makes a purchase, he would earn himself a certain number of points, depending on the price of the
product. After he crosses a certain point level, he would be entitled to a gift from the company or
choose a product of a certain value from the range. This would be helpful in building customer
loyalty and give them an incentive to make repeat purchases. A most valued customer database could
be created from her e and various forms of direct marketing could be directed at them. This would
help the company to retain its existing customers.

A third way to improve customer relationship would be to issue gift coupons and vouchers. People
would have the facility to buy these vouchers and present them to their dear ones. This would be a
good way to reach out towards newer customers through existing ones.
Experts believe that e-commerce is a key area for economic development in the 21st century. This is
undoubtedly true in relation to Russia, where over the next few years will continue the rapid growth
of e-commerce. Currently, we are witnessing the rapid spread of the Internet, not only in the cities
but also in remote regions of Russia. In my view, a few years in e-commerce will be involved more
users, and one in five will be weekly shopping online. Those enterprises that before others will
create their representation on the Internet, will have an advantage over those who work exclusively
in the traditional form.

In conclusion, the degree project should be noted that all the goals and objectives have been met:

• Was determined the relevance of the e-shop, selling different kind of shoes.

• Were considered the pros and cons of e-commerce.

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• Were studied the competitors to get the idea what are their strong and weak point, to develop the
competitive strategy of LifeShoes project.

• Was decided the design of the website.

• Was decided the ways of promotion.

According to estimates, it was determined that the project should be recouped through 11,5
months.

The aim of this project was to develop competitive marketing plan of opening the e-shop of sport
shoes and boots, so the web-page is one of the most important things it should be noted that in the
developed of LifeShoes store interface is successfully combined with either functionality or ease
usage.

Developed the most convenient and accessible work potential client, accessible and
understandable dialogs. Categorised products with a detailed description with illustrations,
flexible ability to search by various criteria, by browsing "novelties" and the best-selling products
will leave a good impression on the client. On any product buyer can leave feedback, thereby
forming, and additional advertising product. In way to give confidence to the buyer in the safety
of their confidential dat, will be presented good quality pictures of products from all sides around,
the forum where buyers and users could leave their comments, it will be published the documents
of guarantees, certifications, etc. Various ways of payment and delivery will suit for any
customer, because it can receive your order without leaving the house on time. It is possible to
flexible work of Logistics Company and the safest kind of payment - cash in delivery that is the
most popular kind of payment in Russian Federation.

Another conclusion is that the promotion is another of the most important parts for the internet
shops, that includes in SEO work, different kind of advertisements, as banners, mailings, etc, also
as different offers, via discounts, sales, gifts - to obtain even more customers.

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BIBLIOGRAPHY

Books:

 PHILIP KOTLER, MARKETING MANAGEMENT, NEW MILLENNIUM


EDITION 2000.

 V.S RAMASWAMY AND S. NAMAKUMARI MARKETING MANAGEMENT,


SECOND EDITION.

Web Sites

www.nike.com

www.webcrawler.com

www.google.com

www.indiatimes.com

Magazines

Business India

India Today

The Hindustan Times

The Economic Times

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QUESTIONNAIRE
1. Do you like Nike footwear products? Why or Why not?

(a) Yes
(b) No

2. Did you buyed nike footwear products?

(a) Yes
(b) No

3. Why do you buy nike footwear product?

(a) High quality


(b) Brand +Trendy pursuer
(c) Other

4. What type of sports do you like?

(a) Soccer
(b) Basketball
(c) Running
(d) Other

5. If you want to buy a sports footwear, which one is your best choice?

(a) Nike
(b) Reebok
(c) Addidas
(d) Others

6. What kind of nike products do you buy?

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(a) Footwear
(b) Clothes
(c) Accessories
(d) Other

7. Do you think prices of nike footwear is expensive?

(a) Yes
(b) No

8.Where is the best place to reach you with Nike advertisement?

(a) Television
(b) Newspaper
(c) Magazine
(d) Internet

9..How often do you buy nike products?

(a) Daily
(b) Weekly
(c) Monthly
(d) Yearly

10. How many times do you watch nike TV adverstisment in one month?

(a) 0 times
(b) 1-5 times
(c) 6-10 times
(d) 11-15 times

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