Professional Documents
Culture Documents
NO CHAPTER NO PG
NO
1 EXECUTIVE SUMMARY 2-4
2 RESEARCH OJECTIVE 5
4 LIMITATION 10
8 ANNEXURE 56-62
9 BIBLIOGRAPHY 63-64
1
CHAPTER 1: EXECUTIVE SUMMARY
2
carried onto city streets. The approach of the new century set
Nike new problems. Trainers went out of fashion, economic
slowdown and labor problems hit Asian performance. But
the group has bounced back, retaining its iron grip on the
sporting apparel sector and still undisputed lender in sports-
oriented street wear.
3
export markets, gradually moving its core other diversified
fields such as: (API) Chemicals and Plasticizers,
(MICROTEK ) Computer Monitors and Peripherals, Power
Back
Up/Inverters, (OKAYA) Batteries, (SUN CITY) Housing
Projects and (SRI BALAJI ACTION MEDICAL INSTITUTE)
Health Care.
4
CHAPTER-2: RESEARCH OBJECTIVES
5
CHAPTER 3: RESEARCH METHODOLOGY
RESEARCH PROBLEMS:-
Consumer‟s preference about different branded and non branded
shoes.
RESEARCH METHODOLOGY:-
Exploratory method.
SAMPLING PLAN:-
SAMPLE SIZE:- 50
6
PRIMARY DATA:- Questionnaire
Interview
SAMPLE
While deciding about the sample of research, it is required from
the Researcher‟s point to pay attention to these under mentioned
points:
a) Sample Units:
A decision has to be taken concerning a sampling unit before
selecting a sample, sampling unit may be a geographical one such
as state, district, village etc. so in this research sampling unit is
Ludhiana area.
c) Sampling Size:
This refers to the no. of items to be selected from
the universe to constitute a sample. This is a major problem
before the researcher. The size of sample should neither be
excessively large not too small, it should be optimum. This size of
population must be kept in view for this also limits the sample
size. Sample size in this research is 50.
7
INSTRUMENTS USED
a) Primary Data:
primary data are those, which are afresh and for the
first time and this happen to be original in character.
b) Secondary Data:
secondary data are those data which have already
been collected by someone else and which have already been
used as per required.
There are basically two sources to collect secondary data
a) Internally: provided by company/organization
b) Externally: various publication of central, state and local
government.
Books, magazines, newspapers
8
Internet
After only keeping in mind one can think about what type of data
has to be collected during research as our research is concerned I
have to gether primary data for customer preference.
RESEARCH INSTRUMENTS:
QUESTIONNAIRE DESIGN:
As the questionnaire is self administered one, the survey is kept
simple and user friendly. Words used in questionnaire are readily
understandable to all respondent. I have made the questionnaire
in which questions are according to the research and these are
convenience for the respondent.
9
CHAPTER 4: LIMITATIONS
Some people were not willing to respond and few of them who
responded were in hurry hence the active participation was
lacking.
Due to which I faced difficulties in collecting information‟s
regarding our questionnaire.
Another problem which I face was that people were hesitating to
give information about their views freely.
10
CHAPTER 5: COMPANY PROFILE
Adidas
INTRODUCTION
11
HISTORY:
The history of Adidas is one of consistently meeting the evolving
needs of the athlete. Focusing more on function and less on
fashion, Adidas strives to provide athletes with shoes that can
make a noticeable difference in their performance. Meeting
athlete
needs is what makes Adidas the best. The company Adidas was
founded in the early 1920s as Gebruder Dassler Schuhfabrik, in
Herzogenaurach in Germany. Adolf Dassler designed a pair of
sport shoes in 1925 and few years later he and his brother
Rudolph were selling special shoes for tennis players and began
design specific shoes for different sports. The family company
split in 1948. After the split, Adolf (Adi) Dassler founded Adidas
and his brother Rudolph founded Puma. The three-stripe logo
was designed in 1941 by Adi Dassler and he registered it as a
trademark for Adidas after the split. The strength of Adidas was
its product innovation. Adi Dassler registered more than seven
hundred patents. Adidas began selling its shoes in the United
States after 1968 and in few years the company dominated the
American market. The most important marketing breakthrough
was the active promotion of global sporting events, especially the
Olympics. The connection of Adidas to the Olympics has a rich
heritage. At the 1972 Olympic game in Munich, every official wore
Adidas.
12
Products: Adidas - footwear, apparel, and hardware such as bags
and balls. Salomon - Winter sports incl. skis, snowboards,
snowblades, ski boots and bindings, inline skates, hiking, apparel.
Mavic -Cycle components, Bonfire - Snowboard apparel. Arc'Teryx
- Outdoor apparel, climbing equipment, Cliché - Skateboard
equipment, footwear and apparel, Taylor Made-Adidas Golf - Golf
equipment, golf apparel, golf shoes and finally, Maxfli - Golf balls,
irons and accessories. COMPETITORS: Rudolf Dassler, Adie‟s
brother, founded a rival company, PUMA the chief competitors of
Adidas are PUMA and NIKE. In August 2005, the company
announced that it had made a deal to acquire rival REEBOK
for$3.8 billion. The acquition would increase its market share in
North America and allow it to further compete with Nike. This
will propel Adidas to the number two spot in the foot apparel
market behind Nike. Adidas‟ trademark saying is „impossible is
nothing‟.
13
ENHANCEMENT
In the 1980s, Adidas sneakers became popular amongst teenagers
and young men. The Adidas sneaker was popularized by the RUN
DMC song “My Adidas” and became a huge fashion trend.
After a period of serious trouble following the death of Adolf
Dasseler‟s son Horst Dasseler in 1987, the company was bought
in 1990 by Bernard Tapie for 1.6 billion French Frances
($320million), which Tapie borrowed. Tapie was at the time a
famous specialist rescuing bankrupt companies, a business on
which he built his fortune.
Tapie decided to move production offshore toAsia.he also hired
Madonna for promotion.
In 1992, Tapie was unable to pay interest from his loan. He
mandated the Credit Lyonnis bank to sell Adidas, and bank
subsequently converted the outstanding debt owed to equity of
the enterprise, which was unusual for then-current French
banking practice. Apparently, the State-owed bank had tried to
get Tapie out of dire financial straits as a personal favour to
Tapie,reportedly because Tapie was a minister of Urban Affairs in
the French government at the time.
February 1993, Credit Lyonnais sold Adidas to Robert Louis
Dreyfus, a friend of Bernard Tapie, for a much higher amount of
money than what Tapie owed 4.485 billion francs rather than
2.85billion. Forgetting why the bank actually bought Adidas,
Tapie later sued the bank, because he felt spoiled by the indirect
sale.
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Robert Louis-Dreyfus became the new CEO of the company. He is
also the president of the Olymique de Marseille football team, to
which Tapie is closely linked. Tapie went bankrupt himself
in1994. He was the object of several lawsuits, notably related to
match fixing at the football club. He spent 6 months in La Santé
prison in Paris in1997.
15
gave the German players a firmer hold on the slippery pitch.
Celebrities:
Celebrities are often involved in advertising campaigns
such as television or print adverts to advertise specific or general
products. Adidas use David Bekham as their brand ambassador
and
many more celebrities in every region to promote their product.
Adidas already has heavy weight sportsmen such as Sachin
Tendulkar, Leander Paes & Mahesh Bhupathi endorsing the brand
in
India. They had the image, apart from endorsing the performance
element in the brand. Adidas steps out of crease with a clear
sports
positioning.
ADIDAS IN INDIA
Adidas entered the Indian market in 1996 by setting up a 100%
subsidiary of Adidas AG called Adidas India Ltd. and announced
its joint venture with Magnum International Trading Company
Ltd. on October 1, 1996. The new joint venture – Adidas India Ltd.
– was incorporated with an initial investment of US $ 205 million
with Adidas India Ltd. holding 80% of the equity and Magnum
holding the balance 20%. This investment was raised to US $ 6.4
million with the equity structure remaining the
same.Currently,thetotalinvestment stands at US
16
$11.4Millionwiththe equity structure changing to 91.4% by
Adidas and 8.6% by magnum. Adidas’ Range of Products in India:
A month after announcing the joint venture, Adidas India Ltd.
launched its range of sports footwear, apparel and accessories in
New Delhi on November 1, 1996. Subsequently, Adidas products
were also launched in Mumbai, Bangalore, Chennai, Hyderabad
and Calcutta. Currently, Adidas products are available in 30 cities
in India.
The range of Adidas products available in India include sports
footwear featuring some of the most popular innovations and
technologies developed by Adidas such as Feet You Wear, Torsion
system and adi wear. The sports footwear available in India
includes a wide range of core categories such as adventure,
basketball cricket, golf, indoor, running, tennis, training, soccer
and workout.
Adidas has introduced in India, a wide range of sportswear for
both men and women. These include apparel for athletics,
basketball, cricket, golf, running, soccer, swimming, tennis and
training for Men and women.
17
BRAND VALUE AND STRATEGY OF ADIDAS:
ADIDAS
Type Public
Founded : 1949
19
Andreas Gellner, Managing
Director , India
Industry : Textile
Products : Footwear
Accessories
20
REEBOK
INTODUCTION
21
HISTORY:
Reebok‟s origins go back to 1895 when Joseph William Foster
made running shoes with spikes in them. He formed a company
called J.W.Foster and sons which made shoes for athletes in
the1924 summer Olympics. In 1958, two of the founder‟s
grandsons started a companion company that came to be known
as Reebok, named for an African gazelle.
In 1979, Paul Fireman, a partner in an outdoor sporting goods
distributorship, spotted Reebok shoes at an international trade
show. He negotiated for the North American distribution license
and introduced three running shoes in the U.S that year. At $60,
they were the most expensive running shoes on the market.
By 1981, Reebok‟s sales exceed @1.5 million, but a dramatic was
planned for the next year. In 1982, Reebok introduced the first
athletic shoe designed especially for the women; a shoe for a new
fitness exercise called aerobic dance. The shoe was called the
freestyle, and with it Reebok anticipated and encouraged three
major trends that transformed the athletic footwear industry: the
aerobic exercise movement, the influx of women into sports and
exercise and the acceptance of well-designed athletic footwear by
adults for street and casual wear. Reebok went public in 1985.
The Chairman and CEO of Reebok was Paul Fireman. He was the
one to introduce the Freestyle in 1980 he was the founder and
innovator of Reebok. He left his position in 2006 and sold Reebok
to Adidas for $3.8 billion. Paul Harrington took his place in April
for two years. In March 2008 Uli Becker became CEO of Reebok.
He is now responsible for Reebok brands business around the
world, and he reports to the chairman and CEO of the Adidas
group. The top 3 CEO connections are Mr. John Warren who is the
chief financial officer and general manager of sports licensed
22
division, Mr. Terry R. Pillow senior vice president, and Mr. Rick
Paterno senior Vice President. The top five shareholders are
Bardwil Industries Inc, Dr. Martens Airwair USA, llc, Native
Intimates Ltd., Welspun USA, Ins., Alpha Mills Corporation. Its
headquarters are in Canton,Massachusetts, U.S.A. its regional
offices are in Amsterdam, Montreal, Hong Kong, and Mexico City.
REEBOK'S VISION
REEBOK’S MISSION
23
REEBOK'S POSITIONING
REEBOK'S PURPOSE
To Empower Global Youth to Fulfill their Potential Commitment
to Corporate Responsibility is an important legacy and hallmark
of the Reebok brand. For two decades, Human Rights,through the
Reebok Human Rights program, were the primary focus of this
effort.
Reebok has expanded on what had been built and created a Global
Corporate Citizenship platform with a purpose for the brand that
will helpunderprivileged, underserved youth around the world
fulfill their potential and live healthy, active lives.
24
REEBOK'S BRAND
TERRITORY
25
Recent Activities of Reebok
26
association with Daddy Yankee's new album. In December 2007,
Reebok launched the GOAL Collection of football gear on the
release of the Indian football movie Dhan Dhana Dhan Goal.
NIKE
INTODUCTION
Nike is a major publicly traded sportswear and equipment
supplier based in the United States. The company is
headquartered near Beaverton, Oregon, which is part of the
Portland metropolitan area. It is the world's leading supplier of
athletic and apparel and a major manufacturer of sports
equipment with revenue in excess of US$18.6 billion in its fiscal
year 2008 (ending May 31, 2008). As of 2008, it employed more
than
30,000peopleworldwide.NikeandPrecisionCastpartsaretheonlyFo
rtune500companiesheadquartered in the state of Oregon,
according to The
Oregonian.
The company's profits grew quickly, and in 1967, BRS opened its
first retail store, located on Pico Boulevard in Santa Monica,
California. 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 newly designed Swoosh 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.
The first shoe sold to the public to carry this design was a soccer
shoe named Nike, which was released in the summer of 1971. In
28
February 1972, BRS introduced its first line of Nike shoes, with
the name Nike derived from the Greek goddess of victory. In
1978, BRS, Inc. officially renamed itself to Nike, Inc.. Beginning
with Ilie Năstase, the first professionalathlete to sign with
BRS/Nike, the sponsorship of athletes became a key marketing
tool for the rapidly growing company.
29
television advertisements and the agency continues to be Nike's
primary today. It was agency co-founder Dan Wiedenwho 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 the campaign has been enshrined in the Smithsonian
Institution.San Franciscan Walt Stack was featured in Nike's first
"Just Do It" advertisement that 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 include
many other sports and regions throughout the world.
PRODUCT
30
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 is well known and
popular in youth culture, chav culture and hip hop cultureas they
supply urban fashion clothing. Nike recently teamed up with
Apple Inc. to produce the Nike+ product which monitors a
runner's performance via a radio device in the shoe which links to
the iPod nano. While the product generates useful statistics, it has
been criticized by researchers who were
able to identify users' RFID devices from 60 feet (18 m) away
using small, concealable intelligence motes in a wireless sensor
network.
In 2004, they launched the SPARQ Training Program/Division.
Some of Nike's newest shoes contain Flywire and Lunarlite Foam.
These are materials used to reduce the weight of many types of
shoes.
MANUFACTURING
Nike has contracted with more than 700 shops around the world
and has offices located in 45 countries outside the United States
Most of the factories are located in Asia, including Indonesia,
China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines,
and Malaysia Nike is hesitant to disclose information about the
contract companies it works with. However, due to harsh
31
criticism from some organizations like CorpWatch, Nike has
disclosed information about its contract factories in its Corporate
Governance Report.
Type : Public
Sports equipment
Accessories
33
Website : Nike.com
ACTION
34
course that essential look.So gets into Action. And feel free to walk
on the rough roads of life. Surely you'll be thewinner
.
35
True to its name Action is always on the move to scale newer
heights in footwear designing and manufacturing. Intensive R& D
efforts and the latest technology go into the making of Action
footwear. We have in house manufacturing facilities, including
modern equipments and machineries specially procured from
different countries to manufacture footwear at par with
international class and quality.
Each Action shoe is the product of a relentless quest for quality,
high level of workmanship and a true commitment to customer
satisfaction. AtAction we strive to listen to the customers in their
local markets and identify their footwear needs and then provide
products that exceed the customer's expectations in terms of
quality, style and value.
Hardly surprising, Action has carved a special niche in the Indian
footwear market and in the hearts of millions of its consumers
throughout the country.
COMPANY’S LOCATION:
Action is headquartered in Delhi, supported by multiple
manufacturing and development units in rest of the states like -
Haryana, Himachal Pradesh and Daman etc. A number of its
executives are based in customer geographies with the express
purpose of creating and nurturing channel partners as well as
customers relationship.
36
STRATEGIC INTENT
VISION
To nurture a financially strong, growth oriented group through
leadership and innovation and to widen future options by
entering newly emerging industries where the potential seems
enormous. We as a group shall continue to seek opportunities
where we can leverage our resources.
MISSION
At Action group our mission is to work together, respecting each
other, our skills and knowledge to:- Build higher quality of
products and services
37
To create a great place to work.
Be welcomed in the communities in which we operate.
VALUES
Teamwork
38
MARKET POSITIONING
DISTRIBUTION NETWORK
To complement our philosophy of catering to every walk of life,
our
powerful distribution network is mushroomed far and wide.
39
CHAPTER 6: DATA ANALYSIS AND
INTERPRETATIONAGE
40
EDUCATION LEVEL OF RESPONDENTS
41
TYPE OF FAMILY
MARITAL STATUS
42
MARRIED 19 38
UNMARRIED 31 62
INTERPRETATION: Data consists of 38% married respondents
who buy
branded shoes after considering price and other attributes of the
product.
And another 62% respondent takes their own decision and they
spend
money according to their will.
INCOME LEVEL
For household and individual income is the sum of all the wages,
salaries, profits, interest‟s payments, rents and other forms of
earning received in a given period of time?
43
under income group of 20&above. Low income group prefer to
wear unbranded shoes.
44
PRESENT CONSUMERS OF BRANDED SHOES
45
INTERPRETATION: Analysis revealed that Adidas is most popular
brand among consumers so it serves 76% customers. NIKE and
REEBOK have also strong place in the market and they both fetch
60% and 62% customers respectively. There is also strong
competition among them.
There are 48%of the consumers are aware about Action shoes.
A customer like only that brand which provide him or her more
satisfaction as compared to other brands available in the market.
46
customers wearing Reebok shoes, 22% wearing Nike shoes and
10% wearing Action shoes. There is
4% respondent wearing other shoes.
PURCHASING PLACE
ADVERTISING MEDIA
47
TYPE OF MEDIA FREQUENCY RESPONDENT PERCENTAGE
RESPONDENTS
ADVERTISEMENT 13 26
FRIENDS 9 18
SALES PERSONS 19 38
EXCLUSIVE
SHOWROOM 9 18
ANY OTHER NIL NIL
INTERPRETATION: Analysis revealed that 38% of the total
respondents become aware about particular brands through
salespersons, 26%through advertisement, 18% through friends,
and another 18% through exclusive showroom.
48
ESPONSES FREQUENCY PERCENTAGE RESPONDENTS
RESPONDENT
YES 36 72
NO 14 28
INTERPRETATION: To measure the effective of advertisement it
is
necessary to know the effect of advertisement on the consumer,
as study indicates 72% are those whose purchasing decision is
affected by advertisement and 28%respondent‟s decision is not
affected by advertisement.
EFFECT OF PRICE
YES 39 78
NO 11 22
49
INTERPRETATION: Analysis shows that 78% respondents change
their purchasing decision if there is any increase in price and
22%respondents do not change their decision even if there is any
increase in price because of brand image.
REPURCHASE PERIOD
ONCE A YR 18 36
TWICE A YR 14 28
THRICE A YR 2 4
SEASONAL 12 24
SPECIAL
OCCASION 4 8
INTERPRETATION: Most of the consumer purchase once in a
year and their percentage is 36% and 28% purchase twice a year,
4%thrice a year, 24% purchase seasonally and 8% purchase on
special occasions.
50
FACTORS AFFECTING THE PURCHASING DECISION
Price and quality of the product are the main factors which affect
the final decision of the consumer.
BRAND LOYALTY
Brand loyalty refers to that a customer being permanent
consumer of brand and he never switch over to other brand.
RESPONSES FREQUENCY
RESPONDENT PERCENTAGE OF
RESPONDENTS
YES 21 42
NO 29 58
51
INTERPRETATION: Study indicates that only42% is the loyal
customers and 58% will change their brand if all the qualities are
available with the new products.
52
CHAPTER 7:SUGGESTIONS AND CONCLUSION
RESEARCH FINDING:
After assessing the overall market scenarios what came in picture
was as
follows:
53
Probably it could be because of the aggressive
attentionsnatched by brands like NIKE and ADIDAS especially in
India.
showrooms.
SUGGESTIONS:
54
advertisements, could be employed. New lines of collections
should be introduced for festivals.
Conclusion
55
CHAPTER 8: ANNEXURE
QUESTIONNAIRE
PERSONAL PROFILE
I.
NAME
II.
AGE
III.
ADDRESS
IV.
TELEPHONE
V.
OCCUPATION
56
VI.
EDUCATION
VII.
TYPE OF FAMILY
VIII.
MARITAL STATUS
Married Unmarried
Any other
IX. FAMILY INCOME (RS. Per month)
57
5000-10000
10000-15000
15000-20000
Yes No
Indifferent
3.
Are you Aware about the following Brands of Shoes?
Nike Adidas
Action Reebok
Any Other
4.
58
Which Brand does you like the most?
Nike Adidas
Action Reebok
Any Other
5.
Up to what extent do you consider following features of
Brand while purchasing?
Price
Quality
Size
Design
Color
Durability
59
Availability
Brand image
Special offers
7.
From where do you like to purchase your Branded
shoes?
8.
Do you think advertisement effect your purchasing
decision?
60
Yes No
9.
How often do you buy branded shoes?
Brand image
Quality
Size
Comfort
61
Durability
Any Other
Yes
No
Indifferent
12
. Would you like to buy another brand if all the attributes
Yes No
62
CHAPTER 9 : BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS:
63
INTERNET:
www.google.com
www.wlkipedia.com
www.paradise.com
NEWSPAPER:
Economic times
64