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Nike Project

Legum Baccalaureus (S.S. Jain Subodh Law College)

Studocu is not sponsored or endorsed by any college or university

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MARKETING RESEARCH PROJECT

ON
“CUSTOMER BEHAVIOUR
TOWARDS NIKE FOOTWEAR”

Submitted to: Submitted by:

Ms Komal Khatter Deepshri Bajpai (13)
Garvit Mittal (16)
Priya Vij (34)
Shivam Singla (47)
Tarunima Rakshit (59)
(PGDM II A)

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DECLARATION

We hereby declare that this project titled “Consumer Behaviourtowards NIKE Footwear”
which is being submitted as term project for Second trimester to Jagannath International
Management School,kalkaji (New Delhi) is an authentic record of genuine work under the
guidance of Dr. KomalJkhatter, Dept. of PGDM.

Date: 07/12/2018 Deepshri Bajpai

Place: New Delhi Garvit Mittal
Priya Vij
Shivam Singla
TarunimaRakshit

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CERTIFICATE
This is to certify that Deepshri Bajpai, TarunimaRakshit, Garvit Mittal, Shivam Singla, Priya
Vij has of PGDM- II A has successfully completed the marketing research project titled
“Consumer Behaviour towards NIKE Footwear” prescribed by Dr. KomalJ Khatter
during the academic session 2018-2020 as per the guidelines issued to us.

Signature Date: 07/12/2018

(Dr. KomalJ Khatter)

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ACKNOWLEDGMENT
We have immense pleasure and are grateful in successful completion of this project titled
“Consumer Behaviour towards NIKE Footwear” within the time given by our lecturer Dr.
Komal J Khatter.
This project could not be completed without the effort and cooperation of the group
members, Deepshri Bajpai, Garvit Mittal, Priya Vij, Shivam Singla,TarunimaRakshit.

We also sincerely thank our lecturer of Marketing Research Dr. Komal J Khatter for the
guideline and encouragement in finishing this project and also teaching us in the course.

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PREFACE
It is a great opportunity for us to have the Post Graduate Diploma In Management in JIMS,
Kalkaji, New Delhi in the accomplishment of this degree, we are submitting a project report
on titled “Consumer Behaviour towards NIKE Footwear. ” Subject to the limitation of
time, efforts and resources every possible attempt has been made to study the problem
deeply. The whole project is measured through the questionnaire, the data further analyzed
and interpreted and the result was obtained.

Consumer Behaviour towards NIKE Footwear

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CONTENTS

S.No. Topics Page No.

1. Introduction of the company 1-11
2. Research Methodology 12-15
3. Data Analysis and Interpretation 16-37
4. Conclusion 38
5. Recommendations 39
6. Findings 40
7. Annexure (Questionnaire) 41-46

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Chapter-1
INTRODUCTION

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INTRODUCTION

Profile of the Company

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 the world's largest supplier 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. As of 2017, the Nike brand is valued at $29.6 billion. Nike ranked No. 89 in the 2018
Fortune 500 list of the largest United States corporations by total revenue.

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, Nike CR7, and subsidiaries including Brand Jordan, Hurley
International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) from
1995 to 2008, and previously owned Cole Haan and Umbro. In addition to manufacturing
sportswear and equipment, the company operates retail stores under the Nike town name. Nike

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sponsors many high-profile athletes and sports teams around the world, with the highly
recognized trademarks of "Just Do It" and the Swoosh logo.

Headquarters

Nike's world headquarters are surrounded by the city of Beaverton but are within unincorporated
Washington County. The city attempted to forcibly annex Nike's headquarters, which led to a
lawsuit by Nike, and lobbying by the company that ultimately ended in Oregon Senate Bill 887
of 2005. Under that bill's terms, Beaverton is specifically barred from forcibly annexing the land
that Nike and Columbia Sportswear occupy in Washington County for 35 years, while Electro
Scientific Industries and Tektronix receive the same protection for 30 years. Nike is planning to
build a 3.2 million square foot expansion to its World Headquarters in Beaverton. The design
will target LEED Platinum certification and will be highlighted by natural daylight, and a gray
water treatment center.

Environmental record

According to the New England-based environmental organization Clean Air-Cool Planet, Nike
ranked among the top three companies (out of 56) in a survey of climate-friendly companies in
2007. Nike has also been praised for its Nike Grind program (which closes the product lifecycle)
by groups like Climate Counts. One campaign that Nike began for Earth Day 2008 was a
commercial that featured basketball Star Steve Nash wearing Nike's Trash Talk Shoe, which had
been constructed in February 2008 from pieces of leather and synthetic leather waste from
factory floors. The Trash Talk Shoe also featured a sole composed of ground-up rubber from a
shoe recycling program. Nike claims this is the first performance basketball shoe that has been
created from manufacturing waste, but it only produced 5,000 pairs for sale.

Another project Nike has begun is called Nike's Reuse-A-Shoe program. This program, started in
1993, is Nike's longest-running program that benefits both the environment and the community
by collecting old athletic shoes of any type in order to process and recycle them. The material
that is produced is then used to help create sports surfaces such as basketball courts, running
tracks, and playgrounds.

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A project through the University of North Carolina at Chapel Hill found workers were exposed
to toxic isocyanates and other chemicals in footwear factories in Thailand. In addition to
inhalation, dermal exposure was the biggest problem found. This could result in allergic
reactions including asthmatic reactions.

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 of the Chuck Taylor All-Stars line of sneakers. The company acquired
Starter in 2004[30] 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 2017, Nike owns two key subsidiaries: Converse Inc. and Hurley
International.

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 three 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.

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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 Records sued Nike Inc., Capitol Records Inc., EMI Records Inc. and Wieden+Kennedy
for $15 million. 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 Records."

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.

New media marketing

Nike was an early adopter of internet marketing, email management technologies, and using
broadcast and narrowcast communication technologies to create multimedia marketing
campaigns.

Nike 6.0

As part of the 6.0 campaign, Nike introduced a new line of T-shirts that include phrases such as
"Dope", "Get High" and "Ride Pipe" – sports lingo that is also a double entendre for drug use.
Boston Mayor Thomas Menino expressed his objection to the shirts after seeing them in a
window display at the city's Niketown and asked the store to remove the display. "What we don't

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need is a major corporation like Nike, which tries to appeal to the younger generation, out there
giving credence to the drug issue," Menino told The Boston Herald. A company official stated
the shirts were meant to pay homage to extreme sports, and that Nike does not condone the
illegal use of drugs. Nike was forced to replace the shirt line.

NBA uniform deal

In June 2015, Nike signed an 8-year deal with the NBA to become the official uniform supplier
for the league, beginning with the 2017–18 season. The brand took over for Adidas, who
provided the uniforms for the league since 2006. Unlike previous deals, Nike's logo appear on
NBA jerseys – a first for the league. The only exception is the Charlotte Hornets, owned by
longtime Nike endorser Michael Jordan, which instead uses the Jumpman logo associated with
Jordan-related merchandise.

Nike India

Nike India Ltd. is India's largest footwear company. Nike first established itself in India in 1931
and commenced manufacturing shoes in Batanagar in 1936. The company has its Headquarters
in Kolkata and manufactures over 33 million pairs per year in five plants located in Batanagar
(West Bengal), Faridabad (Haryana), Bangalore (Karnataka), Patna (Bihar), Hosur (Tamil
Nadu). It secures its leather supply from two tanneries in Mokamehghat (Bihar) and Batanagar
(West Bengal). It has a distribution network of over 1,500 retail stores and 27 wholesale depots
provide excellent access to consumers and wholesale customers throughout India.

RECENT DEVELOPMENTS

Nike India has said that it's Faridabad and Mokamehghat units are being taken over by Fashion
Shoe Private Ltd and BDCL Enterprises Pvt. Ltd, respectively. The company is also enabling the
buyback provision in its Articles of association to enable buy back of shares.

The assets and liabilities of both the units will be transferred to these companies and shares will
be offered in the agreed ratio to the existing shareholders of Nike India Ltd on a record date,
which will be fixed by the Calcutta High Court.

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FUTURE PLAN

The management says that it is not averse to outsourcing if it worked out cheaper. It is also open
to the idea of importing shoes - mostly from China - if it works out cheaper. Nike and Reebok
India Company have announced an agreement to foray into retailing partnership for sale of
Reebok and Rockport footwear in Nike outlets. The partnership entails retailing a range of sports
shoes for walking, running, tennis and training for personal fitness and sports ranging between
Rs 900-2,500.

An attractive valuation compared to its peers is the main trigger for the scrip. Besides, the
company's aggressive focus on retailing and revamping of business (a division into shoes and
apparels) is also helping sentiment for the scrip. Plans are afoot to start selling apparel in India
made by the joint venture North Star. There's talk that the company is planning on a voluntary
retirement scheme (VRS) to cut costs.

Despite reducing its losses for the last quarter, Nike India has, over the last few quarters, been
continuously recording weak performances as a result of an overall slowdown in the industry due
to lower consumer spending. Increasing domestic competition, particularly from the unorganized
sector, has also been eroding into the company’s market share.

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The company is finding it difficult to maintain its market share in a highly price-sensitive Indian
market, despite having strong brand recall.

97% of the company's revenues are from the domestic market while the remainder is from
exports. Nike India is the biggest player in the Indian shoe market.

Nike India‟s major problems include its high cost of production and low emphasis on marketing.
The company may be able to address the first problem through outsourcing products. Bata’s
brand image has been restricted to that of a company that emphasizes on utilitarian products
more than trendy ones. Customers feel the company is lacking in innovation. Hence, their
preference has shifted to other local brands.

Nike India has a large marketing network with over 1,500 showrooms, 27 wholesale depots and
eight retail distribution centers across the country.

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4PS OF NIKE

Nike's 4Ps comprised of the following approaches to pricing, distribution, advertising and
promotion, and customer service:

Pricing: Nike's pricing is designed to be competitive to the other fashion shoe retailers. The
pricing is based on the basis of premium segment as target customers. Nike as a brand
commands high premium.

Place: Nike shoes are distributed to Multi Brand store front and the exclusive Nike stores across
countries. While this necessitates a second trip for the customer to come and pick up the shoes, it
allows Nike to offer a much wider selection than any of the competition.

Promotion: Location, targeted advertising in the newspaper and strategic alliances serves as the
foundation of Nike advertising and promotion effort. The athletes and other famous sports
personalities are always taken as brand ambassadors. They form the prime building blocks of
their portion strategy.

Product: The product range of Nike comprise of shoes, sportswear, watches etc. Its product
history began with long distance running shoes in 1963. (Past 17 years: Air Jordan basketball
shoes). Wide range of shoes, apparel and equipment.

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SWOT Analysis of Nike

The SWOT of Nike discusses the strengths, weaknesses, opportunities and threats of the leading
footwear brand – Nike. Nike is one of the top three players in the world for sports shoes. You
can also refer to this article on top Nike competitor’s.

 Strengths

 Nike is the world’s no. 1 shoemaker. It designs and sells shoes for a variety of sports
including baseball, golf, cheerleading, volleyball, tennis and football.
 Nike uses a “Make to Stock” customer order which provides a fast service to
customers from available stock.
 Nike operates Nike Town shoe and sportswear stores, Nike factory outlets and Nike
Women shops. Nike sells its products throughout US and in more than 180 countries.
 Nike is strong at research and development, as is evidenced by its evolving and
innovative product range. They then manufacture wherever they can produce high
quality product at the lowest possible price.
 Nike is a global brand. It is the number one sports brand in the World. Its famous
‘Swoosh’ is instantly recognizable, and Phil Knight (Founder and CEO) even has it
tattooed on his ankle.

 Weaknesses

 The income of the business is still heavily dependent upon its share of the footwear
market. This may leave it vulnerable if for any reason its market share erodes.
 The retail sector is very price sensitive. However, most of its income is derived
from sellinginto retailers. Retailers tend to offer a very similar experience to the
consumer. So margins tend to get squeezed as retailers try to pass some of the
low price competition pressure onto Nike.

 Opportunities

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 Product development offers Nike many opportunities. The brand is fiercely defended
by its owners whom truly believe that Nike is not a fashion brand however consumers
that wear Nike product do not always buy it to participate in sport. In youth culture
especially, Nike is a fashion brand. This creates its own opportunities
 There is also the opportunity to develop products such as sport wear, sunglasses and
jewellery. Such high value items do tend to have associated with them, high profit
 The business could also be developed internationally, building upon its strong global
brand recognition. There are also global marketing events that can be utilised to
support the brand such as the World Cup (soccer) and The Olympics.

 Threats

 Nike is exposed to the international nature of trade. It buys and sells in different
currencies and so costs and margins are not stable over long periods of time. Such an
exposure could mean that Nike may be manufacturing and/or selling at a loss. This is
an issue that faces all global brands.
 The market for sports shoes and garments is very competitive. Competitors are
developing alternative brands to take away Nike’s market share.

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Chapter-2
RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY

SCOPE OF THE STUDY

Research methodology is conducted as the nerve of the project. Without a proper well-organized
research plan, it is impossible to complete the project and reach to any conclusion. The project
was based on the survey plan. The main objective of survey was to collect appropriate data,
which work as a base for drawing conclusion and getting result.

RESEARCH OBJECTIVES

 To study the tastes, preferences, and buying behaviour of consumers in case of footwear
of Nike.
 To recommend strategies to Nike to increase sales.
 To understand the problems of consumers while buying Nike shoes.

RESEARCH DESIGN

A research design is a systematic plan to study a scientific problem.

Type of research- Descriptive research

Descriptive research includes surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables, he/she can
only report what has happened or what is happening.

DATA SOURCES

There are two types of data sources.

Primary data includes, data collected first hand by someone specifically for the purpose of
facilitating the study is known as primary data.

Mostly under this data is collected through the questionnaire.

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Secondary data includes, for the company information we used secondary data like brochures,
web site of the company etc.

RESEARCH INSTRUMENTS

Selected instruments which is used for data collection for our project is Questionnaire (Google
Forms).

QUESTIONNAIRE DESIGN FORMULATION

Under this method, list of questions pertaining to the survey are prepared consumers of shoes.

TYPES OF QUESTION INCLUDED

1. Multiple Choice Questions – Respondent is offered more than two choices

2. Likert Scale – Respondents specify their level of agreement or disagreement on a
symmetric rating scale.

DATA ANALYSIS TECHNIQUES

1. Pie charts
2. Bar Graphs
3. SPSS Software
 Descriptive Statistics
 Correlation
 Regression

SAMPLING TECHNIQUE

In the project sampling is done on the basis of the convenience sampling. It is a type of non-
probability sampling that involves the sample being drawn from that part of population that is
close to hand. It includes – Online poll, survey your best friends, Colleagues, Asking the
volunteers.

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SAMPLE SIZE

Consumer of shoes: 113 respondents

STEPS FOLLOWED IN COMPLETING THE STUDY

1. Internet sites containing information on Nike shoes & marketing are browsed.
2. Sample survey was conducted.
3. Data was thoroughly checked for error.

DATA PROCESSING METHODOLOGY

1. Once the primary data have been collected, they are edited – inspected, corrected and
modified.
2. Tabulation – bring similar data together and totaling them in meaningful categories.
3. Questionnaires are edited. The responses are thoroughly checked for incorrect,
inconsequential or contradictions categories are developed only often the replies has been
reviewed. This review provided a feel for the pattern of answers and thus determine what
categories best represent the answers.
4. The collected data are placed into an order. Percentages of respondents answered
similarly are calculated and placed in a table.
5. The data is taken to SPSS and various analysis techniques are applied to derive the
output.
6. The output of SPSS and the Questionnaire both are 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.
7. Conclusion was drawn based on the survey findings.
8. Finally, recommendation was made to improve the sales strategy of Nike shoes to
increase the sales volume.

LIMITATION OF 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.

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Chapter-3
DATA ANALYSIS
AND
INTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

 AGE

S.No. Age Respondents

1 15-19 14
2 20-25 88
3 26-35 10
4 Above 35 1

Out of 113 respondents, 77.9% people fall in the age group of 20-25 years old. While 8.8% are
around 26-35 years old; 12.4% people come from 15-19 year old age group. Remaining 0.9% are
aged more than 35.

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 If you are going to buy a pair of shoes, which brand will you choose?

S.No. Brand Respondents

1 Nike 57
2 Adidas 25
3 Puma 17
4 Reebok 10
5 Other 4

Among 113 responses, 50.4% prefer NIKE as a preferable brand when it comes to choosing pair
of shoes while 22.1% go along with adidas, 15% prefer puma and 8.8% chose reebok among the
options.

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 Are you brand loyal to any brand below in terms of footwear in the sports
industry?

S.No. Brand Loyal Respondents

1 Nike 29
2 Adidas 15
3 Puma 15
4 Reebok 9
5 Frequently switching 41
6 Others 4

In terms of brand loyalty in terms of footwear in the sports industry, following were the
results obtained –

Majority of the respondents expressed that they switch frequently among the brands.

While undoubtedly maximum brand loyalty is seen among the customers of NIKE earning
itself a handsome 25.7% percentile out of 113 responses. Adidas and puma scored a tied
13.3% customers’ commitment and 8% responses fall in favors of Reebok.

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 What are the main factors if you switch to buy footwear of another
brand than Nike?

S.No. Main Factors Respondents

1 Better quality 37
2 Easy availability 13
3 Less price 23
4 Variety 38
5 Others 2

33.6% accepted that they usually switch to other footwear than NIKE when they find
better variety in some other brand, while 32.7% and 20.4% population switch for better
quality and less prices respectively. 11.5% responses show that NIKE shoes are not easily
available everywhere in every collection.

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 Is your purchase behavior influenced by Nike’s marketing and

promotions?

Out 113 responses-

13 people said that they are not at all influenced by NIKE’s promotions and marketing.

31 people chose option 2, i.e. they are not affected while 37 people gave a neutral
response (can be interpreted as they are not sure as in a conflicting state).23 people
agreed that yes, they find NIKE impressive in terms of marketing and promotions and
remaining 9 people stood firm that they find NIKE’s marketing and promotions highly
influential.

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 Are you satisfy with Nike footwear on the basis of quality?

Above graph shows that out of 113 people only 1 respondent considers NIKE footwear poor
in terms of quality , 6 people rated it as bad quality footwear brand while 21 people consider
NIKE average on the basis of quality. Majority of responses were for a good quality i.e. 53
people. 32 people consider NIKE footwear excellent in terms of quality.

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 Do you think Nike footwear are easily available?

AMONG 113 RESPONSES, this was the feedback in terms of numerical figures that we
received-

3people find that NIKE is not easily available and most of the stores face a stock shortage
problem every now and then.15 people have issues while 30 people said that yes, NIKE
footwear are always easily available in stores.

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 Do you find Nike footwear are comfortable?

1 person out of 113 find NIKE footwear uncomfortable, while majority of people i.e. 44
find NIKE footwear comfortable and 36 people are extremely satisfied by NIKE footwear
in terms of comfort.

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 Do you know that Nike offers customized footwears?

Customized footwear range by NIKE received mixed responses from the people who
contested in our survey-

23 people were not at all aware about the fact.

19 people said they have no idea about it.

25 people were not sure about it.

28 people knew about NIKE offering customized footwear.

18 people were sure that they knew about it already.

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 Are you brand conscious while buying footwear?

38 people out of 113 who contested in our survey were found to be brand conscious when
it comes to buying footwear while 7 of them were those who don’t consider brand when
it comes to choosing the right footwear for them.

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 Do you spend too much time on deciding shoes?

Majority goes with 41 responses that agree to the fact that yes, they take their time while
deciding shoes, with 29 people who take a lot of time to decide their shoes and only 2
people said that they rarely spend much time on deciding shoes.

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 Do you think Nike stores display the best form of advertisement?

44 people show an average response, while 37 people agreed to the fact that nike stores
display the best form of advertisement.

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 Do you always get Nike products as and when required?

Above data shows that 49 people among 113 get NIKE products quite easily as and when
required, 11 people showed extreme satisfaction in terms of availability of NIKE
products.

While 4 people said that they never get NIKE products as and when required.

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 Do you think Nike is innovative with its products?

3 people find NIKE lacking in terms of innovative ideas.

12 people said that NIKE is not good in terms of innovation.

24 people were sort of not sure of and gave a neutral response.

55 people think that NIKE incorporate innovative ideas while designing its products.

19 people think that NIKE is highly innovative with its products.

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Descriptive Statistics
Std.
N Range Minimum Maximum Sum Mean Deviation Variance Skewness Kurtosis
Std. Std. Std.
Statistic Statistic Statistic Statistic Statistic Statistic Error Statistic Statistic Statistic Error Statistic Error
If you're going to buy a 113 4 1 5 323 2.86 .105 1.117 1.248 .128 .227 -.660 .451
pair of shoes, which
brand will you choose?
What are the main 113 4 1 5 448 3.96 .082 .876 .767 -.743 .227 .470 .451
factors if you switch to
buy footwear of
another brand than
Nike?
Are you brand loyal to 113 4 1 5 416 3.68 .102 1.088 1.183 -.478 .227 -.580 .451
any brand below in
terms of footwear in
the sports industry?
Is your purchase 109 4 1 5 430 3.94 .095 .989 .978 -.765 .231 -.112 .459
behaviour influenced
by Nike's marketing
and promotions?
Are you satisfied with 113 4 1 5 338 2.99 .129 1.373 1.884 -.089 .227 -1.219 .451
Nike footwear on the
basis of quality?
Do you think Nike 113 4 1 5 425 3.76 .108 1.152 1.326 -.803 .227 -.004 .451
footwear are easily
available?
Do you find Nike 113 4 1 5 420 3.72 .098 1.039 1.080 -.475 .227 -.524 .451
footwear are
comfortable?
Do you know that Nike 113 4 1 5 375 3.32 .087 .928 .862 -.067 .227 -.399 .451
offers customized
footwears?
Are you brand 113 4 1 5 387 3.42 .090 .962 .925 -.518 .227 -.063 .451
conscious while
buying footwear?
Do you spend too 113 4 1 5 414 3.66 .091 .969 .939 -.714 .227 .215 .451
much time on deciding
shoes?
Valid N (listwise) 109

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DESCRIPTIVE STATISTICS

Mean – It is determined by adding all the data points in a population and then dividing the total
by the number of points. According to our research, we can see that the Mean values of all the
variables are ranging between 2.86 and 3.66 which is not a huge difference. This suggests that
our variables have shown similar Means and it indicates that our data is reliable.

Standard Deviation – It is a measure of variation based on measuring how far each data value
deviates, or is different, from the Mean. SD is higher if the data is spread out and lower if the
data is close to the Mean. In our research, we see that the highest SD (1.373) is found in the
variable of satisfaction from the quality of Nike footwear indicating that the data is spread out.
While the lowest SD (0.876) is found in the variable of factors that would affect switching to
another brand indicating that the data is close to Mean value.

Skewness – Skewness is asymmetry in a statistical distribution, in which the curve appears

distorted or skewed either to the left or to the right. If skewness is positive/greaterthan 0, the data
are positively skewed, meaning that the right tail of the distribution is longer than the left. From
our research, it can be inferred that most of our variables are negative/lesser than 0 which means
that the data is negatively skewed or left skewed, meaning that the left tail of the distribution is
longer than the right. Also, If skewness is less than −1 or greater than +1, the distribution is
highly skewed which is not found in our data.

Kurtosis – It indicates how the peak and tails of a distribution differ from the normal
distribution. A distribution with a positive kurtosis value indicates that the distribution has
heavier tails and a sharper peak than the normal distribution which can be observed only in two
variables of our data, remaining variables have negative kurtosis which indicates that the
distribution has lighter tails and a flatter peak than the normal distribution.

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Correlations
If you're What are Is your
going to the main Are you purchase
buy a factors if brand loyal to behaviour
pair of you switch any brand influenced Are you Are you
shoes, to buy below in by Nike's satisfied Do you Do you find Do you brand Do you
which footwear of terms of marketing with Nike think Nike Nike know that conscious spend too
brand another footwear in and footwear footwear footwear are Nike offers while much time
will you brand than the sports promotion on the basis are easily comfortable customized buying on deciding
choose? Nike? industry? s? of quality ? available? ? footwears? footwear? shoes?
If you're going to Pearson 1 .360** .301** .278** .180 .105 .181 .328** .306** .170
buy a pair of shoes, Correlation
which brand will Sig. (2-tailed) .000 .001 .003 .057 .267 .056 .000 .001 .072
you choose? N 113 113 113 109 113 113 113 113 113 113
What are the main Pearson .360** 1 .401** .525** .275** .080 .156 .486** .209* .470**
factors if you switch Correlation
to buy footwear of Sig. (2-tailed) .000 .000 .000 .003 .399 .100 .000 .026 .000
another brand than N 113 113 113 109 113 113 113 113 113 113
Nike?
Are you brand loyal Pearson .301** .401** 1 .534** .291** .245** .251** .163 .497** .295**
to any brand below Correlation
in terms of footwear Sig. (2-tailed) .001 .000 .000 .002 .009 .007 .084 .000 .001
in the sports N 113 113 113 109 113 113 113 113 113 113
industry?
Is your purchase Pearson .278** .525** .534** 1 .287** .200* .254** .331** .342** .433**
behaviour Correlation
influenced by Nike's Sig. (2-tailed) .003 .000 .000 .002 .037 .008 .000 .000 .000

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marketing and N 109 109 109 109 109 109 109 109 109 109
promotions?
Are you satisfied Pearson .180 .275** .291** .287** 1 .117 .098 .268** .361** .313**
with Nike footwear Correlation
on the basis of Sig. (2-tailed) .057 .003 .002 .002 .216 .300 .004 .000 .001
quality ? N 113 113 113 109 113 113 113 113 113 113
Do you think Nike Pearson .105 .080 .245** .200* .117 1 .144 .114 .036 .055
footwear are easily Correlation
available? Sig. (2-tailed) .267 .399 .009 .037 .216 .127 .231 .705 .560
N 113 113 113 109 113 113 113 113 113 113
Do you find Nike Pearson .181 .156 .251** .254** .098 .144 1 .141 .095 .206*
footwear are Correlation
comfortable ? Sig. (2-tailed) .056 .100 .007 .008 .300 .127 .137 .319 .029
N 113 113 113 109 113 113 113 113 113 113
Do you know that Pearson .328** .486** .163 .331** .268** .114 .141 1 .247** .348**
Nike offers Correlation
customized Sig. (2-tailed) .000 .000 .084 .000 .004 .231 .137 .008 .000
footwears? N 113 113 113 109 113 113 113 113 113 113
Are you brand Pearson .306** .209* .497** .342** .361** .036 .095 .247** 1 .317**
conscious while Correlation
buying footwear? Sig. (2-tailed) .001 .026 .000 .000 .000 .705 .319 .008 .001
N 113 113 113 109 113 113 113 113 113 113
Do you spend too Pearson .170 .470** .295** .433** .313** .055 .206* .348** .317** 1
much time on Correlation
deciding shoes? Sig. (2-tailed) .072 .000 .001 .000 .001 .560 .029 .000 .001
N 113 113 113 109 113 113 113 113 113 113

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**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

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It is a statistical technique that can show whether and how strongly pairs of variables are related.
A correlation ranging between + 0.7 to + 1, shows a high + correlation between two variables.
According to our data, we can observe that none of the correlation is between the above specified
range. The highest correlation found in our data are marked in red (showing medium +
correlation) which are few and remaining variables show a very low + correlation. Thus, it can
be inferred that the variables of our data are independent of each other.

REGRESSION:

Variables Entered/Removed a
Model Variables Entered Variables Removed Method
1 What are the main factors . Stepwise (Criteria:
if you switch to buy Probability-of-F-to-enter
footwear of another <= .050, Probability-of-
brand than Nike? F-to-remove >= .100).
a. Dependent Variable: c

Model Summary

Std. Error Change Statistics

R Adjusted of the R Square F Sig. F
Model R Square R Square Estimate Change Change df1 df2 Change
1 .360a .130 .122 1.047 .130 16.529 1 111 .000
a. Predictors: (Constant), What are the main factors if you switch to buy footwear of another
brand than Nike?

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ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 18.111 1 18.111 16.529 .000a
Residual 121.623 111 1.096
Total 139.735 112
a. Predictors: (Constant), What are the main factors if you switch to buy footwear of another
brand than Nike?
b. Dependent Variable: If you're going to buy a pair of shoes, which brand will you choose?

It describes how an independent variable is numerically related to the dependent variable. In our
data, we selected independent variable/predictor variable as “What are the main factors if you
switch to buy footwear of another brand than Nike?” and dependent variable as “What are the
main factors if you switch to buy footwear of another brand than Nike?” As there is a very low
correlation of our data, which means that correlation cannot act as a base of regression. There is
no cause and effect relationship between the variables hence the R square is so low.

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CONCLUSION

The following survey depicts that mostly young population is drawn towards NIKE footwear
especially when it comes to sportswear. NIKE shows its strong status and market share and its
strength in athletic market. It seems that NIKE has comparatively better market share than its
major competitors ADIDAS and REEBOK. The following research shows that NIKE has
innovative shoe designs which enables consumer to design their own customized shoes online
but due to lack of promotion the brand is not able to fully cash this golden card they hold. At the
same time it has higher price compared to its competitors as ADIDAS. In terms of opportunities,
the brand can develop products such as sport’s wear, sunglasses etc. NIKE can support different
market events and try to grow their segmentation of women athletes.

Talking about Indian market, it is highly price elastic so NIKE should consider its prices
accordingly because people are quite sensitive to the price of the offered footwear collection.

NIKE certainly needs to come up with better market strategies either be in terms of promotions,
variety or pricing of its products as its competitors are becoming more and more aggressive and
creating high quality products.

NIKE needs to reframe its future plan to create a stable mark for itself in the market to sustain in
the increasing competition.

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RECOMMENDATIONS

According to the research, it was found that majority of the sample preferred to buy sport shoes
based on the quality of the product, variety of options available, lesser prices, and easy
availability in the market. Most of them were brand conscious which posed a good sign for Nike
as it is an established brand in the footwear industry.

But, it was also found that customer keep switching to other brands based on the same factors
mentioned above. Thus, Nike needs to retain those customers with aggressively working on the
promotions, advertising and marketing techniques.

Nike also needs to create awareness of its existing products as many customers are unknown to
Nike’s customised shoes. It may be highly innovative with its products (as said by the
respondents) but there wouldn’t be any advantages if people don’t get to know about them. It can
earn an edge over the fast approaching competitor Adidas.

Nike can also improve its inventory management and availability of stock in stores. As there is a
high demand of Nike footwear, stores need to have a reasonable number of stock to fulfil those
demands. Otherwise, customers may switch to other brands such as Adidas, Puma, Reebok etc.

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FINDINGS

Based on our research of a sample size of 113 respondents, we found that maximum respondents
were between the age group of 20-25. So, our data is relatively based on the choices and
preferences of the younger generation who purchase sports shoes a lot.

Nike was found to be the most demanded brand in the footwear industry with half of the
respondents opting for it, wherein Adidas running just behind with 22.1%.

It was found that customers of footwear keep switching among brands to satisfy their needs. Yet,
25.7% of people show brand loyalty towards Nike which is a good indicator for Nike’s brand
image.

Customers’ buying behaviour highly depend upon the variety of products that a brand is offering
and how easily available it is in the market. While Nike’s purchases are not highly based on
marketing and promotions.

Major chunk of the sample was observed to be satisfied with the quality and comfort of Nike
footwear as out 113 respondents, 85 of them rated quality as 4-5 and 80 of them rated comfort as
4-5.

It was found that most of the customers are highly brand conscious while buying footwear and
tend to spend a good amount of time on deciding shoes/footwear.

It was also found that the mean values of our variable were close to each other which indicates
reliability of the data.

However, there is no or very low correlation between two variables of the data. This shows that
all the variables are independent and cause of one will not affect any other variable. Since, the
correlation is low, it could not be the base for regression.

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ANNEXURE

(QUESTIONNAIRE)

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Sample Questionnaire

1. NAME

2. AGE

o 15-19
o 20-25
o 26-35
o Above 35

3.If you're going to buy a pair of shoes, which brand will you choose?

o Nike
o Adidas
o Puma
o Reebok
o Other

4. What are the main factors if you switch to buy footwear of another brand than Nike?

o Better quality
o Easy availablity
o Less price
o Variety
o Others

5. Are you brand loyal to any brand below in terms of footwear in the sports industry?

o Nike
o Adidas
o Puma
o Reebok
o Frequently switching
o Others

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6. Is your purchase behaviour influenced by Nike's marketing and promotions?

o Not at all influential

o 1
o 2
o 3
o 4
o 5
o Highly influential

7. Are you satisfied with Nike footwear on the basis of quality ?

o Poor
o 1
o 2
o 3
o 4
o 5
o Excellent

8. Do you think Nike footwear are easily available?

o Never
o 1
o 2
o 3
o 4
o 5
o Yes, always

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9. Do you find Nike footwear are comfortable ?

o Not at all
o 1
o 2
o 3
o 4
o 5
o Very comfortable

10. Do you know that Nike offers customized footwears?

o Not at all aware

o 1
o 2
o 3
o 4
o 5
o Fully aware

11. Are you brand conscious while buying footwear?

o Not at all
o 1
o 2
o 3
o 4
o 5
o Highly

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12. Do you spend too much time on deciding shoes?

o Not at all
o 1
o 2
o 3
o 4
o 5
o A lot of time

13. Do you think Nike stores display the best form of advertisement?

o Not at all
o 1
o 2
o 3
o 4
o 5
o Yes, they do

14. Do you always get Nike products as and when required?

o Never
o 1
o 2
o 3
o 4
o 5
o Always

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15. Do you think Nike is innovative with its products?

o Not at all
o 1
o 2
o 3
o 4
o 5
o Highly

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