A Study on Consumer Perception towards sportswear companies i.e.

Nike & Adidas.

Submitted to Lovely Professional University

In partial fulfillment of the requirements for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by: Supervisor:

Group No : S-031 ROKTIM SARMAH

Shyamal Mishra Roll No. : A-20 Designation-Assistant Professor

Santosh Kumar Roll No. : A-21

Vikas Kumar Singh Roll No. : A-22

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA

(2011)
 Annexure II

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled “A Study on Consumer perception towards
sportswear companies i.e. NIKE & ADIDAS” carried out by Mr. Shyamal Mishra, Mr. Santosh
Kumar, Mr. Vikas Kumar Singh has been accomplished under my guidance & supervision as a
duly registered MBA student of the Lovely Professional University, Phagwara. This project is
being submitted by him in the partial fulfillment of the requirements for the award of the Master
of Business Administration from Lovely Professional University.

His dissertation represents his original work and is worthy of consideration for the award of the
degree of Master of Business Administration.

(ROKTIM SARMAH)

Date:
 Annexure III

DECLARATION

I, "Shyamal Mishra, Santosh Kumar, Vikas Kumar Singh”, hereby declare that the work
presented herein is genuine work done originally by me and has not been published or submitted
elsewhere for the requirement of a degree programme. Any literature, data or works done by
others and cited within this dissertation has been given due acknowledgement and listed in the
reference section.

(Shyamal Mishra - 10900260)

(Santosh Kumar - 10900192)

(Vikas Kumar Singh - 10900127)

Date:__________________
A Study on Consumer Perception towards sportswear companies i.e. Nike &
Adidas.

Consumer Perception :

Perception is defined as the process by which an individual select, organise and interprets
stimuli into a meaningful and coherent picture of the world. Two individual may be exposed to
the same stimuli under the same time apparent condition but how each person recognizes, selects
and organizes and interprets these stimuli is highly individual process based on each persons’s
own needs, values and expectations. A person do not act and react on the basis of objective
reality because reality is a phenomenon based on that person’s need, want, value and personal
experience. Consumer perception is basically refers to the buying perception of an individual that
how a person perception change to see a particular stimuli and after that how their buying
behavior also changed.. So for the marketer, perception are much more important then the
knowledge of objective reality. So for the marketer it’s not more that what they shows to their
target market, it is more important that what target market think about their showing object. So
it’s necessary to understand the influencing factor of consumer perception which forces to
change their buying behaviour.

Industry Overview :

The Indian retail Industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, Indian retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the industry is
getting more popular these days and getting organized as well. With growing market demand, the
industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected
to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010.

Growth of Indian Retail Sector :

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney,
Indian retail industry is the most promising and the most emerging market for investment. In
2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the
country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.

Accrding to a report by Northbride Capita, the India retail industry is expected to grow to
US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market
share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total
retail market.

Major Retailers in India :

Pantaloon :

Pantaloon is one of the biggest retailers in India with more than 450 stores across the
country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across
the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year
2010. In 2001, Pantaloon launched country's first hypermarket ‘Big Bazaar’. It has the following
retail segments:

 Food & Grocery: Big Bazaar, Food Bazaar

 Home Solutions: Hometown, Furniture Bazaar, Collection-i
 Consumer Electronics: e-zone
 Shoes: Shoe Factory
 Books, Music & Gifts: Depot
 Health & Beauty Care: Star, Sitara
 E-tailing: Futurebazaar.com
 Entertainment: Bowling Co.

Tata Group :

Tata group is another major player in Indian retail industry with its subsidiary Trent, which
operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book
and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft retail space across
the country.

RPG Group :

RPG Group is one of the earlier entrants in the Indian retail market, when it came into food
& grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy
and beauty care outlets ‘Health & Glow’.

Reliance :

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh
stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to
reach Rs. 90,000 crores by 2010.

AV Birla Group :

AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis
Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other
segments of retail. It will invest Rs. 8000-9000 crores by 2010.

Retail formats in India :

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of

categories.

 Mom-and-pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.
 Departmental stores: are general retail merchandisers offering quality products and
services.
  Convenience stores: are located in residential areas with slightly higher prices goods due
to the convenience offered.
 Shopping malls: the biggest form of retail in India, malls offers customers a mix of all
types of products and services including entertainment and food under a single roof.
 E-trailers: are retailers providing online buying and selling of products and services.
 Discount stores: these are factory outlets that give discount on the MRP.
 Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other
small items can be bought via vending machine.
 Category killers: small specialty stores that offer a variety of categories. They are known
as category killers as they focus on specific categories, such as electronics and sporting
goods. This is also known as Multi Brand Outlets or MBO's.
 Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of
examples.

Challenges facing Indian retail industry :

 The tax structure in India favors small retail business

 Lack of adequate infrastructure facilities
 High cost of real estate
 Dissimilarity in consumer groups
 Restrictions in Foreign Direct Investment
 Shortage of retail study options
 Shortage of trained manpower
 Low retail management skill

The Future :

The retail industry in India is currently growing at a great pace and is expected to go up
to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year
2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has
also gone up and is also expected to go up further in the future. In the last four year, the
consumer spending in India climbed up to 75%. As a result, the India retail industry is expected
to grow further in the future days. By the year 2013, the organized sector is also expected to
grow at a CAGR of 40%.
Companies Overview :

NIKE :

Type Public (NYSE: NKE)

Designing and Manufacturing:

Industry Sportswear
Sports equipment

January 1964 as Blue Ribbon Sports

Founded
1978 as Nike, Inc.

William J. "Bill" Bowerman

Founder(s)
Philip H. Knight

Washington County, Oregon, United

Headquarters States
(Near Beaverton, Oregon)

Area served Worldwide

Philip H. Knight
(Chairman)
Key people
Mark Parker
(CEO & President)

Athletic shoes
Apparel
Products
Sports equipment
Accessories
 Revenue US$19.2 billion (FY 2009)[2]

Operating income US$1.87 billion (FY 2009)[2]

Net income US$1.49 billion (FY 2009)[2]

Total assets US$13.2 billion (FY 2009)[3]

Total equity US$8.69 billion (FY 2009)[3]

Employees 30,200 (2008)

Nike, Inc. 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 shoes and apparel and a
major manufacturer of sports equipment with revenue in excess of $18.6 billion USD in its fiscal
year 2008. As of 2008, it employed more than 30,000 people worldwide. Nike is the only
Fortune 500 company headquartered in the state of Oregon, according to The Oregonian.

The company was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman
and Philip Knight, and officially became Nike, Inc. in 1978. 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 Skateboarding and subsidiaries including Cole
Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later
renamed Nike Bauer) between 1995 and 2008.[5] 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.

ADIDAS :
 Aktiengesellschaft (FWB: ADS,
Type
ADR:Pink Sheets: ADDYY)

Industry Clothing and consumer goods manufacture

Founded 1924 (registered in 1949)

Founder(s) Adolf Dassler

Headquarters Herzogenaurach, Germany

Area served Worldwide

Herbert Hainer (CEO), Erich

Stamminger (CEO, Adidas Brand),
Key people
Igor Landau (Chairman of the
supervisory board)

Footwear, sportswear, sports equipment,

Products
toiletries

Revenue €10.38 billion

Operating
€508 million
income

Profit €245 million

Employees 39,600
 Adidas is a major German-based sports apparel manufacturer and parent company of the
Adidas Group, which consists of the Reebok sportswear company, TaylorMade-adidas golf
company (including Ashworth), and Rockport. Besides sports footwear, the company also
produces other products such as bags, shirts, watches, eyewear and other sports and clothing
related goods. The company is the largest sportswear manufacturer in Europe and the second
biggest sportswear manufacturer in the world, after its U.S. rival Nike.

The company's clothin and shoe designs typically feature three parallel bars, and the same
motif is incorporated into Adidas's current official logo. The "Three Stripes" were bought from
the Finnish sport company Karhu Sports in the 1950s. The company revenue for 2009 was listed
at €10.38 billion and the 2008 figure at €10.80 billion.

Need & Scope of the Study :

The scope of the study was confined to the customers in Jalandhar, Punjab state. The
immediate customers for the company are the middle class. The study was emphasized on the
perception of consumer regarding Nike & Adidas brands. It will help Nike & Adidas to target its
customer more precisely because this will help their management to know there customer in
detail. It will also help to know the perception of customers regarding their competitors (i.e.
PUMA & REEBOK).

As this research is conducted on customer of Jalandhar city so it will be not more fruit
full to implement the finding of this research in other city than Jalandhar city because we know
that consumer behavior changes according location. So conclusion may be applicable in
Jalandhar city and may not be true for the whole.

OBJECTIVE OF THE STUDY:-

Primary objective:-

 To know the factors which influences the consumer’s perception towards their purchase
of shoes in Nike & Adidas retail Outlets.
Secondary objective:-

 To know the effect of branding in retail on purchasing decision of consumer.

Literature Review :

Adidas axes Becks, opts for Sikh, Hindustan Times 10 oct 2010 says that
Adidas has replaced David Beckham as Adidas's new poster boy. On the latest Adidas
billboards, spread across London, he is sitting cross-legged; as if cooling his heals after a day's
work out, peeping over Londoners, tired and overworked, telling them the secrets of his unfailing
energy. Fauja Singh, Britain's most popular Sikh is 93, the oldest runner in Sunday's London
Marathon. He is threatening to break his own world record of 5.40 hours in the 90 plus age
bracket that he set last year. While running Marathon races in London, New York and Toronto
last year, he raised thousands of pounds for various charities promoting Sikh culture around the
world. He has also raised money for BLISS, a charity dedicated to the care for premature babies.
He describes it as the "oldest running for the youngest". Fauja Singh shot to fame five years ago,
when aged 89, he completed the gruelling 26.2 mile distance in 6 hours and 54 minutes. This
knocked 58 minutes off the previous world best for anyone in the 90 plus age bracket. The career
of this extraordinary Marathon runner is closely supervised by his personal trainer Harminder
Singh. He says "he can still run for a few more years. And perhaps in five years he might be the
oldest man to run a Marathon."Fauja Singh came to London in 1992 to live with his son after his
wife's death in his village in Jalandhar. "Sitting at home was really killing," he says in Punjabi.
"Most elderly people in Britain eat a rich diet, don't move about and only travel in cars, and that
makes them sick," he says. He wasn't prepared to go the same way. So he took up jogging
initially to beat the boredom of sitting at home.

Sharapova bags $70m eight-year Nike deal, ANI, Jan 13, 2010, says that Nike
has extended its association with former Wimbledon champion Maria Sharapova by eight years
for $70 million, just days before the start of the Australian Open. The deal takes effect this
month according to a person with knowledge of the contract and includes a line of dresses
designed by the former top-ranked tennis player.

The 22-year-old will also get a percentage of sales, according to the source who asked not
to be identified because the terms are private, The Sydney Morning Herald reports. Nike the
world's largest athletic-shoe maker, has worked with the Russian for 11 years. Since winning
Wimbledon in 2004 at the age of 17, Sharapova has become one of the biggest draws on the
WTA Tour and the world's best-paid female athlete. She has also won the Australian and US
Opens. Sharapova makes close to 22 million dollars a year in prize money and from endorsing
companies including Tiffany & Co., Sony Ericsson and Canon, according to Sports Illustrated.
 Adidas, Woodland enter into marketing tie-up PTI, Oct 25, 2007, says that
Sports apparel company Adidas on Friday said it had entered into a marketing tie-up with shoe
firm Woodland for sale of its range of sports footwear and accessories at select outlets across the
country. "They hope to place their range of sports footwear, apparel and accessories at top 22-23
Woodland exclusive stores by the first quarter of 2003," Adidas India Managing Director Tarun
Kunzru said on the sidelines of a press conference called to announce cricketer Virendra Sehwag
as its new brand ambassador.
Woodland had 53 exclusive stores all over the country. He said Adidas India, which has
about 35% market share in the niche branded sports footware and apparel market, will soon
clock Rs 100 crore turnover."they had grown at 30 per cent on year-on-year basis as against the
market growth of just around 20 per cent," he said pointing that the top brand market size was
around Rs 250 crore. Adidas entered the Indian market in 1996 by setting up a 100 per cent
subsidiary. It subsequently entered into a joint venture with Magnum International Trading
Company with an initial investment of $2.5 million with Adidas India holding 80 per cent of the
equity and Magnum holding the balance. "This investment was raised to $6.4 million with the
equity structure remaining the same. Currently, the total investment stands at $13.2 million with
the equity structure changing to 91.4 per cent by Adidas and 8.6 per cent by Magnum," he said.

Nike keen to extend Nike+ beyond running Marketingmagazine.co.uk, 13

October 2010, says that Nike is working on introducing versions of its Nike+ running
monitoring system for other sports, according to its vice-president of digital sport, Stefan
Olander.Olander said Nike+ had helped the brand's running division to grow market share "every
single year" since it launched in 2006 with Apple.Innovations such as Nike+ were part of a
deliberate attempt for the brand to position itself as helping athletes to get better, he
added.Olander said: "The insight was that people need motivation. What Nike+ gave you was
that.He provided the statistic that when Nike+ launched, 25% of runners ran to music, and now
75% did.Nike has focused on adding motivational features to Nike+, with the latest one being for
your iPhone to play a stadium roar when someone comments on Facebook during your run.If you
can "obsessively focus on serving people"
 Nike Opens New Concept Store at Roosevelt Field,

Ken Ryan, September 17, 2010 says that Nike unveiled its new 14,000 square foot concept
store at Roosevelt Field the first of its kind for the company on the East Coast and only the
second to open up in the United States.The store, which features wide aisles, colorful displays
and dozens of mannequins, emphasizes customer service and high-tech product offerings tailored
to each customer, or "team member," as they are called."Everything now is personal," said Ryan
Schafer, marketing coach at Nike. "Everything is focused on customer service."The Nike
opening comes at a time of increased competition in the sports apparel and footwear category at
Roosevelt Field. In August, Foot Locker introduced its newly designed House of Hoops by Foot
Locker while Adidas this month unveiled its new store design, giving shoppers a choice of three
powerful brands under one roof.The Nike store, on the mall's second level, offers an extensive
and varied merchandise mix. There is performance footwear and apparel for men and women
spanning several sport categories, including training, basketball, soccer and running. There is
sportswear, footwear and apparel including retro Air Jordans, Air Maxes, Air Force 1s and
Dunks, and limited edition releases.The Nike store, which has 90 employees, is arranged in
product blocks that feature pieces from a specific category or brand. The Jordan block, for
example, features all Jordan brand and apparel. In addition to the product blocks, there is a full
service NIKEiD space in the middle. The NIKEiD area offers customizable footwear and apparel
options and iD exclusives.The NIKEiD program began in 1999 as a way for consumers to design
their own Nike footwear, but has since broadened to include apparel and other equipment. This
new store offers 115 key styles for consumers to customize their sneakers.True to its founding,
running is still at the forefront of the new concept store. One program, Nike+ Run Club, lets
users "test-drive" their latest Nike footwear and tune into their experience using Nike+, a
technology that allows runners to connect their iPod or iPhone to their running shoes while
tracking distance, pace and calories. New iMac stations and wireless connectivity in the store
enables runners to sync up their run at NikePlus.com along with iPod charging docks and
printable custom routes. If you are unsure how to use the technology, Nike personnel are
available to troubleshoot.Schafer said Nike wants its customers to feel "empowered" when they
walk into the store and feel they are part of the team, no matter what kind of athlete they are."If
you have a body, any type of body, you're an athlete in our eyes, and we will find something that
fits your needs," he said.The first Nike concept store, a two-story, 20,000 square foot facility,
opened in Santa Monica last month. The Roosevelt Field store opened in August as well, during
its soft launch period."The reviews have been tremendous," Schafer said. "Just being around here
empowers you."

Nike to run first new Tiger ad since sex scandal: Report, AFP, Apr 8, 2010,
02.36am IST in WASHINGTON: Disgraced golf superstar Tiger Woods will debut in his first
new television ad since embarrassing revelations about extra-marital affairs emerged, The Wall
Street Journal reported on Wednesday.
The paper's website said an advertisement for Nike - airing on the eve of Woods's much-
anticipated return to competitive golf after a five-month layoff - would feature a voice recording
of the golfer's late father appearing to talk about the golfer's personal woes.
"I want to find out what your thinking was; I want to find out what your feelings are. Did
you learn anything," the paper reported a voice-over as saying.
Woods has admitted an adultery scandal that has seen more than a dozen women claim
sexual relationships with the married father of two, destroying the squeaky-clean image that
made Woods the world's first billion-dollar sportsman.
Nike reportedly paid Woods around 40 million dollars a year.
Sponsors had sought to distance themselves from the troubled star as sordid details of his
person life emerged. But as Woods embarks on his comeback this week - teeing off at Augusta
National Golf Club for the Masters - his star-appeal could be too much for firms to shun.
Play begins on Thursday, with Tiger facing 95 rivals trying to deny the world's number
one golfer a 15th major title.
The ad is to air on the Golf Channel and ESPN later on Wednesday, the Wall Street
Journal reported.

Nike Opens New Concept Store at Roosevelt Field, By Ken Ryan,

September 17, 2010 says that Nike unveiled its new 14,000 square foot concept store at
Roosevelt Field Wednesday night, the first of its kind for the company on the East Coast and
only the second to open up in the United States.The store, which features wide aisles, colorful
displays and dozens of mannequins, emphasizes customer service and high-tech product
offerings tailored to each customer, or "team member," as they are called.

"Everything now is personal," said Ryan Schafer, marketing coach at Nike. "Everything
is focused on customer service."

The Nike opening comes at a time of increased competition in the sports apparel and
footwear category at Roosevelt Field. In August, Foot Locker introduced its newly designed
House of Hoops by Foot Locker while Adidas this month unveiled its new store design, giving
shoppers a choice of three powerful brands under one roof.

The Nike store, on the mall's second level, offers an extensive and varied merchandise
mix. There is performance footwear and apparel for men and women spanning several sport
categories, including training, basketball, soccer and running. There is sportswear, footwear and
apparel including retro Air Jordans, Air Maxes, Air Force 1s and Dunks, and limited edition
releases.The Nike store, which has 90 employees, is arranged in product blocks that feature
pieces from a specific category or brand. The Jordan block, for example, features all Jordan
brand and apparel. In addition to the product blocks, there is a full service NIKEiD space in the
middle. The NIKE area offers customizable footwear and apparel options and iD exclusives.

The NIKE program began in 1999 as a way for consumers to design their own Nike
footwear, but has since broadened to include apparel and other equipment. This new store offers
115 key styles for consumers to customize their sneakers.True to its founding, running is still at
the forefront of the new concept store. One program, Nike+ Run Club, lets users "test-drive"
their latest Nike footwear and tune into their experience using Nike+, a technology that allows
runners to connect their iPod or iPhone to their running shoes while tracking distance, pace and
calories. New iMac stations and wireless connectivity in the store enables runners to sync up
their run at NikePlus.com along with iPod charging docks and printable custom routes. If you are
unsure how to use the technology, Nike personnel are available to troubleshoot.Schafer said Nike
wants its customers to feel "empowered" when they walk into the store and feel they are part of
the team, no matter what kind of athlete they are.
 "If you have a body, any type of body, you're an athlete in our eyes, and we will find
something that fits your needs," he said.The first Nike concept store, a two-story, 20,000 square
foot facility, opened in Santa Monica last month. The Roosevelt Field store opened in August as
well, during its soft launch period.

"The reviews have been tremendous," Schafer said. "Just being around here empowers
you."

Adidas Q4 net income falls 64% to $26m, Herbert Hainer, , Mar 3, 2010,
03.25pm, says that FRANKFURT: German sportswear company Adidas AG said Wednesday its
fourth quarter net income declined 64% to euro19 million ($26 million) on rising purchasing
costs, currency effects and a drop in demand during the downturn.
The Herzogenaurach-based company earned euro54 million in net income during the
October-December period of 2008.
Revenue for the fourth quarter of 2009 was steady around euro2.5 billion.
For the whole of 2009, net income fell 62 percent to euro245 million from euro642 million.
Revenue in 2009 fell 6 percent to euro10.4 billion from euro10.8 billion.
Adidas, the world's second largest sportswear company by sales after Nike Inc., said
rising purchasing costs and currency effects were the main reasons for the decline in net income.
``With no doubt, 2009 was the most difficult year during my time as chief executive,''
Herbert Hainer said in the report.
``However, we rose to the challenge. Despite a 53 percent decline in operating profit, we
generated a 141 percent increase in net cash from operations for a record euro1.2 billion. This is
definitely the outstanding achievement of the year and a credit to all the hard work and
dedication of our employees,'' Hainer said.
Hainer said Adidas was starting the new year with growing optimism and aiming for a
sales increase, partly pushed by this year's football World Cup in South Africa.
During the last World Cup in 2006, hosted by Germany, Adidas was able to add more
than euro1 billion to its top line, through sales of football equipment like jerseys, cleats and balls,
as fans snatched up garb during the month long tournament. Despite the expected sales kick from
the event, the company said it expected a slow turnaround in consumer spending in 2010 and
only a low to mid-single-digit increase in sales. However, the company forecast some lower
operating and interest rate expenses, which should push earnings per share to a level between
euro1.90 and euro2.15 from euro1.22 in 2008.
Adidas' brands include TaylorMade-adidas Golf, Rockport and Reebok-CCM Hockey.
The news sent shares of Adidas 5 percent lower to euro36.12 in Frankfurt morning trade.

Adidas, Puma truce for a day, REUTERS, Sep 19, 2009, 01.11am says that
LONDON: More than 60 years after a feud between brothers Adi and Rudolf Dassler resulted in
the creation of the Adidas and Puma sportswear rivalry, the two companies are making peace ...
for one day.
A historic handshake between the chief executives of the two firms and a football match,
which will see employees from both companies play on mixed teams, have been planned for
Monday to celebrate International Peace Day, the companies said in a joint statement this week.
"We are uniting on this day as a commitment to Peace Day," Puma CEO and chairman
Jochen Zeitz said in the statement. These are the first joint activities between the two companies,
both based in Herzogenaurach, Germany, since the brothers left their original shared sports
footwear firm in 1948 to found the two companies.
The joint initiative aims at raising awareness for the Peace One Day, an international day
of peace initiatives supported by the United Nations.

Adidas Indonesia head is India MD, Ken Ryan, May 20, 2006, 11.46pm says
that A restructuring has been announced at Adidas India by the company's regional HQ at Hong
Kong. The move follows financial irregularities, which triggered exit of its top management
team, including MD, COO & CFO.

Paul Hardisty, who was heading Adidas Indonesia, has taken over as MD of the Indian
operations. However, Hardisty's appointment may not be long-term. "This is perhaps for a 3-6
month period," a source said. Hardisty has replaced Tarun Kunzru, who quit in March after audit
irregularities. G Kannan, who was overseeing operations as MD soon after Kunzru quit, has
returned to Adidas, Singapore.

The other two top management posts — that of Harish Doraiswamy who was COO and
Shriram Ranganathan, CFO — have not been filled up. According to sources, there will be no
replacement for these posts. "Mid-management will take care of these posts. Adidas sees this as a
cost-cutting measure," a source said. In another development, Christophe Boje, CEO, Adidas
South-East Asia, has been visiting India to oversee domestic operations.

An Adidas spokesperson declined to either deny or confirm these developments. Adidas

India continues to be in the red. The company has not yet made net profits. Its turnover is
estimated at under Rs 100 crore.

Research Methodology :

Research Design :- Descriptive research method has been applied to gather the customer
perception. As this data will be primary data so a survey will be conducted.

Sampling Design :- In sampling method, convenience sampling is applied in Nike & Adidas
retail Outlets because it will reduce time and money in data collection. The customer who is
coming for purchasing in retail outlets will be eligible for research.
Data Collection Method :- The primary data are first hand data which is generated
specially for the pursuing research project. Collecting of primary data is to be done by preparing
questionnaire for the research project. ‘Pilot study’ is to be conducted for testing the
questionnaire. The pilot survey helps in making certain changes in the final questionnaire so that
it can be more effective. A structured questionnaire has been prepared for the respondents in
order to collect the data.

Scaling Technique :- At the time of formulation of Questionnaire Likert Scale & Simmantic
Scale has been used.

.Sampling unit :- It refers to the individuals who has been surveyed in the study and it is the
customer who has bought products are surveyed. The consumers who are going for purchasing in
Nike - Model town, Rajendra nagar, Garha road in Jalandhar, (Punjab) & Adidas NH-1
Highway, Cheheru, (Punjab) are be surveyed.

Sample Size :- Our Sample Size will be 150.

Secondary data :-

The secondary data can be defined as data collected by someone else for purposes other than
solving problem being investigation and previously meant for another purpose. In this the
company database, magazines, journals, paper and interne has been used for the collection of
data. It helps to better determine our problem and formulate an appropriate research design.

: ANALYSIS & INTERPRETATION :

1. Do you have any knowledge about Branded footwear products/Company ?

 5

Yes
No

145

Yes 145 No 5

Here 96.66% said yes to know about the footwear Industry while 3.33% said No.

2. if yes how you come to know?

 11

34 58
Magazine
News Paper
T.V. Add
Any Other Media

42

Magazine 58 News paper 42

T.V Add. 34 Any other media 11

40% people say that they came to know through Magazine, 28.96% said –
through News Paper, 23.44% said through T.V. Add & 7.58% Choosen Any Other
Media.

3.Which company shoes you want to purchase ?

 25

53
Nike
20 Adidas
Puma
Reebok

47

NIKE 53 ADIDAS 47
PUMA 20 REEBOK 25

Here 36.55% choosen Nike, 32.41% choosen Adidas, 13.79% choosen Puma &
17.24% Choosen Reebok.
4. Reason for not Choosing NIKE AND ADIDAS?

7 6

Availability
High Prices
Poor Service
Any Ither

15 17

Availability 6 High prices 17

Poor services 15 Any other 7

13.33% people said due to availability, 37.77 said due to High prices, 33.33 said –
due to poor service & 15.55% said due to other reason.

5. What are your views regarding “PRICE” of NIKE AND ADIDAS shoes ?
 6
12

Cheap
Affordable
Costly
Very Costly
35 47

Cheap 6 Affordable 47

Costly 35 Very costly 12

Here 6% customers say tha the prices are cheap, 47% say affordable, 35% say Costly &
12 % say very Costly.
 6. What is your opinion about overall sales process of NIKE & ADIDAS?

15

27

Very good
Good
Fair
Poor

35

23

Very good 27 Good 23

Fair 35 Poor 15

Here 27% customers said that the sales process is very good, 23% said good, 35% said
Fair & 15% said poor.
 7. Rank the attributes of NIKE AND ADIDAS shoes as per your preference, ( 1-Highest, 5-
lowest).

60

50 48

40 37 37
33 Quality
32 32 31
29 29 Performance
30 26 26 27 Availability
23 Price
20 18 Service
15 14

10 88 8
5 55 4

0
Rank-1 Rank-2 Rank-3 Rank-4 Rank-5

Factor Rank-1 Rank-2 Rank Rank- Rank-

-3 4 5
Quality 32 23 37 8  
Performance 26 29 32 8 5
Availability 37 26 18 14 5
Price 48 29 15 8  
Service 33 27 31 5 4

32 people given 1st rank to quality, 26 given to performance, 37 given to Availability, 48

given to price & 38 given to services of the retail outlet.
 8. What is your opinion on the performance of NIKE AND ADIDAS shoes ?

11

34

Excellent
27 Good
Satisfactory
Poor

28

Excellent 34 Good 28

Satisfactory 27 Poor 11

Here 34% Customers said Excellent, 28% said good, 27% said satisfactory & 11%
customers said poor performance.

9. Rank the Companies as per your preference. (Rank1-Most, Rank5-Least).

 80
69
70

57 59
60

50 45 46
42 42 NIKE
39 38 38
40 ADIDAS
PUMA
30 27 REEBOK
21 23
20 15
11
10 8

0
Rank-1 Rank-2 Rank-3 Rank-4

Companie Rank- Rank- Rank- Rank-

s 1 2 3 4

NIKE 69 38 27 11
ADIDAS 42 57 38 8
PUMA 21 23 59 42
REEBOK 39 45 46 15

69 respondents ranked 1st to NIKE, 42 ranked 1st to ADIDAS, 21 Ranked 1st to PUMA &
39 Ranked 1st to Reebok.
10.Would you like to recommend about NIKE AND ADIDAS shoes to others?

17

Yes
No

83

Yes 83 No 17

Here 83% said Yes & 17 % said No.

 : Findings :

1. More than 90% of the consumers get the knowledge about branded footwear industry
through Magazine, News Paper & T.V. Adds.

2. More than 60% consumers want to purchase shoes of NIKE & ADIDAS.

3. More than 80% consumers believes that selling processes in NIKE & ADIDAS retail
outlet is good.

4. Most of Consumers have given 1st rank to Nike & 2nd to Adidas.

5. More than 80% consumers are satisfied with quality of NIKE & ADIDAS shoes.

: Suggestions :

1. Nike & ADIDAS should focus more on advertisements Pop-up Ads.

 2. Companies should Promote their discount schemes more.

3. Both Companies should also target the Rural Market.

4. Both Companies should also target lower middle class segment.

: Limitations :

1. Study and Research was conducted only in the Nike & Adidas retail outlet.
2. The topic concept selected is too broader hence for the less time it was not to be undertaken.

References :

1. http://www.adidas.com/in/homepage.asp
2. http://www.projectfever.com/index.php?
main_page=product_info&cPath=2&products_id=126
3. http://www.ccsenet.org/journal/index.php/ass/article/viewFile/1388/1350
4. http://www.businessweek.com/bwdaily/dnflash/aug2005/nf2005088_0844_db008
.htm
5. http://www.epinions.com/reviews/Nike_Air_Flight_Perception
6. http://www.docstoc.com/docs/2383620/Commodity-chain-analysis-of-a-Nike-
Shoe
7. http://www.netmba.com
8. http://www.financialexpress.com/news/adidas-and-nike-battled-for-world-cup-
kodak-moment/649899/
9. http://www.meettheboss.tv/articles/default.aspx?articleId=328
10. http://www.helium.com/items/193028-nike-vs-adidas
11. http://www.just-style.com/news/adidas-unveils-plan-to-overtake-
nike_id109440.aspx
12. http://www.approvedarticles.com/Article/Adidas-Sneakers-and-Nike-
Sneakers/123457
13. http://www.reuters.com/article/idUSTRE6A71MB20101108
14. http://www.techdirt.com/articles/20100912/22341910973/runkeeper-s-ability-to-
outrun-nike-adidas-shows-how-big-companies-don-t-always-copy-win.shtml