Business research

method

Submitted to: Submitted by:

Prof. V.A Dubey Srishti Gambhir

(1802570023)

Arjun Singh

(1802570032)

ShivaniPunj

(1802570013)
Project Report-

Submitted in partial compliance of the requirement

of Master of Business Administration (MBA)
 DECLARATION FROM STUDENTS

We, Ms. Srishti Gambhir, Ms.Shivani Punj and Mr.

Arjun Singh ; roll no. 1802570023,1802570013
&1802570032 resp. declare that the project report
entitled “The nature of Customers Satisfaction efforts
implemented by NIKE for its Customers ” is done by us and it is
an authentic work carried out by us. The matter contained in
this has not been submitted earlier for the award of any
degree or diploma to the best of our knowledge and belief.

Signature

Srishti Gambhir Shivani Punj Arjun Singh

(1802570023) (1802570013) (1802570032)
 CERTIFICATE FROM GUIDE
This is to certify that project title “The nature of
Customers Satisfaction efforts implemented by
NIKE for its Customers ” has been carried out by
Srishti Gambhir (1802570023), Shivani Punj
(1802570013) & Arjun Singh (1802570032)
students of MBA 2018-2020 of school of
management and commerce, K.R Mangalam
University , Gurgaon, Sohna Road , under my
Supervision.

Signature of Guide

Prof. V.A Dubey (Dean)

 Acknowledgement
The satisfaction that accompanies the successful
completion of any task would be incomplete with
acknowledging the people whose ceaseless
cooperation, constant guidance and
encouragement crown all the efforts with success.
We would like to express my sincere gratitude to
our Prof.V.A Dubey (Dean) .We were privileged to
experience a sustained enthusiastic and involved
interest from their side.
Last but not the least , We would like to thank K.R
Mangalam University , in general , for extending a
helping hand at every juncture of need.

Srishti Gambhir
Arjun Singh
Shivani Punj
 Table of Contents
1. Executive Summary
2. Introduction to study
3. Objectives of the study
4. Company profile
5. Nike –
Mission statement
Vision statement
6. Business Situation Analysis
7. Competition
8. Problem Statement
9. SWOT Analysis – Strength, Weaknesses,
Opportunity & Threats
10. STP –(Segmentation, Targeting and
Positioning)
11. Research Methodology
12. Research Design-
Type of research – Descriptive Research
13. Data Sources –
Primary Data
Secondary Data
14. Research Instrument-
Hypothesis
Purpose of Hypothesis
15. Questionnaire
 EXECUTIVE SUMMARY

This Marketing strategic plan has been written keeping in mind

the Indian operations of Nike - the global sports shoe giant- It
aims first at analyzing the sports shoe industry India and finding
a place in it for Nike- It then sets out to describe the target
audience for the product range and finally suggests a host of
marketing strategies and activities that will help Nike to achieve
its target of becoming the 45 sports shoe brand in India. The
plan begins with a brief overview of the product category being
dealt with namely premium quality sports shoes. The marketing
plan to be followed by Nike in India- Firstly the objectives
behind this plan and the core strategy are stated-Customers to be
eventually targeted are described and compared with
competitors customer targets- After starting the objectives and
reasoning behind them the actual marketing programs are
described in detail- this includes aspects such as pricing
Advertising, Promotion, Sales, Channels and the Company
website. Suggestions are made on each and every one of these
aspects improvements and innovations are recommended.
 INTRODUCTION TO STUDY

This report is a final analysis of marketing research conducted on Nike

Footwear created by Nike, Inc This research was collected by several
different methods. It consisted of conducting secondary research in order
to obtain background information for a situational analysis of Nike,
footwear brand. The situation analysis established strengths,
weaknesses, opportunities and threats (SWOT) of Nike, footwear line.
After this information was collected we moved into the next phase of the
study. For all phases of our research, the target market and subjects of
study are college age respondents and participants. Although, we did
gain some research from older-aged respondents, to gain better
knowledge of how they view the brand and what their attitudes and
perceptions of it.

The objective of this study is to better understand the feelings, attitudes,

behaviors and motivations associated with Nike Footwear from college-
aged respondents. We noted that the college-aged student respondents
preferred to wear Nike Footwear over any other athletic brand of shoe.
They also preferred Nike Footwear over any brand of shoe in general. In
addition, they are most likely going to wear Nike Footwear on a daily
basis, for example, walking to class.
OBJECTIVES OF THE STUDY

1.) To study the nature of Customer Satisfaction efforts implemented by NIKE

for its Customer.
2.) To recommend strategies to Nike to increase sales in ladies segment.
3.) To study the comparative study with the Competitors.
4.) To study target audience for the Product range and activities that will help
NIKE to achieve its target of becoming no 1 shoe brand in India.
5.) To meet the demands and requirements of target market ( sneakers of young
and old age consumers)
6.) To increase the 3-4 % profitability in each of its product lines (i.e.
increasing sales growth by 10 % annually).
7.) To apply continuous marketing strategies to broaden its product range
(increasing aerobic products)

COMPANY PROFILE
NIKE, Inc., incorporated on September 8, 1969, is engaged in the design,
development, marketing and selling of athletic footwear, apparel, equipment,
accessories and services. The Company's operating segments include North
America, Western Europe, Central & Eastern Europe, Greater China, Japan and
Emerging Markets. The Company's portfolio brands include the NIKE Brand,
Jordan Brand, Hurley and Converse. The Company sells its products to retail
accounts, through its retail stores and Internet Websites, and through a mix of
independent distributors and licensees across the world. The Company's products
are manufactured by independent contractors.
As of May 31, 2016, the Company focused its NIKE brand product offerings in
nine categories: Running, NIKE Basketball, the Jordan Brand, Football (Soccer),
Men's Training, Women's Training, Action Sports, Sportswear (its sports-inspired
lifestyle products) and Golf. Men's Training includes its baseball and American
football product offerings. The Company also markets products designed for kids,
as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis,
volleyball, wrestling, walking and outdoor activities. The Company's athletic
footwear products are designed primarily for specific athletic use. Its products are
also worn for casual or leisure purposes. The Company also sells sports apparel.
The Company also markets apparel with licensed college and professional team
and league logos. he Company's brand, Converse, designs, distributes and licenses
casual sneakers, apparel and accessories under the Converse, Chuck Taylor, All
Star, One Star, Star Chevron and Jack Purcell trademarks. Converse Direct to
Consumer operations include e-commerce business.
The Company competes with Adidas, ASICS, Li Ning ,lulu lemon athletic a,
Puma, V.F. Corporation and Under Armour.

Nike-

Mission Statement.

“Our mission is to bring inspiration and innovation to every athlete in

the world”“if you have body, u are an Athlete”
Vision Statement
‘The Nike goal is to carry on his legacy of innovative thinking, whether to develop
products that help athletes of every level of ability to reach their potential, or to
create business opportunities that set Nike apart from the competition and provide
value for our shareholders.

BUSINESS SITUATION ANALYSIS

Nike incorporation is the words leading sports footwear and Apparel Company.
The main Nike brand is mostly targeted towards the athletes, selling related
products such as shoes, sporting equipment’s and clothes. Over the past five years
the Athlete and sporting goods manufacturing Industry has expected to slow
growth according to the modest growth in the sports participation rate. The
Demand for sporting goods is increasing over the period. In the next five years to
2020 consumer will becomes more health conscious, which will estimate demand
for Athlete equipment’s. This Athlete industry is highly fragmented and
characterized by the high level of competition.

In today’s world market of sport goods is increasing and this market is highly
growing in U.S. as compared to other countries and it has been projected more than
63 billion in U.S in 2014. Consumers purchase different products such as athletic
footwear, licensed sports merchandise Athletic apparel, exercise equipment but
they are not included in recreational transportation. Many of the products such as
sporting goods are sold through online channels over the internet and have highest
growth in market share of distribution channels. Despite of having online

channels people more over prefer to shop in stores for sport goods in 2013.If any
company creates the good relationship with its consumers, so they must find out
the needs and wants of the consumers. As Nike has done this by providing the
good customer service and even when customer face any type of problem so they
can send email to the Nike for get rid from their problem related purchasing, Nike
would solve their problems within working days and customers can solve their
problems with help of websites and sending them emails. So this has made the
consumers to have positive image of Nike in their minds which can increase their
purchasing decisions and behavior towards the Nike products.

COMPETITION

The main competitors always of Nike are Reebok and Adidas

and their product are not entirely different from Nike’s

products, as all products involved in the design and marketing of both athletic
footwear and apparel and for fitness projects but Nike is having differentiation and
distinctive competency in the area of marketing. Nike always creates the consumer
brand awareness and has strong brand power for a long time and also makes a
position in the market. Nike is having the no 1 seat which cannot be replaced by its
competitors so easily because of its long-lasting Slogan “Just Do It” and symbols
“Swoosh” and their sports icons are recognizable for target audience. If any
company creates the good relationship with its consumers, so they must find out
the needs and wants of the consumers. As Nike has done this by providing the
good customer service and even when customer face any type of problem so they
can send email to the Nike for get rid from their problem related purchasing, Nike
would solve their problems within working days and customers can solve their
problems with help of websites and sending them emails. So this has made the
consumers to have positive image of Nike in their minds which can increase their
purchasing decisions and behavior towards the Nike products.

PROBLEM STATEMENT
Supporters of these marketing approaches have suggested that learning what
customers want and giving them exactly what they want will create customer
loyalty and barrier to competition- This research project report has seen written
keeping in mind the Indian Operations of Nike Inc.- the global sports shoe giant.

SWOT Analysis
Strength

 It is a global brand and no.1 shoe maker

 It has strong distribution channels
 It has strong position over its minimal long term debt .
 Has innovative shoe design which enable consumer to design their own shoe
online
 It has diversified products worldwide
 Have different segments as baseball, golf footwear etc.
Weakness

 Its sales highly depend on the footwear segment

 It has violations in history and they provide minimal wage rate to its workers
 Has poor conditions in work places
 Has higher price compared to its competitors as Adidas

Opportunity

 It can develop products such as sport’s wear, sunglasses and jewelry

 Its brand can also developed internationally
 It can support different market events globally as (the Olympics, FIFA)
 It may have expansion in larger brand recognition in market
 It can have growing segmentation of women Athletes’
 It can increase demand and introduce fashion brand image in market .

Threats

 Economic recession and fluctuations in the currency can lead Nike to losses
 Higher competition as competitors are becoming more aggressive and
creating high quality products
 Sensitivity to price
 Maintaining reputation of eco-friendly
 STP (Segmentation, Targeting and Positioning)

Market Segmentation

It has following segmentation to create consumers groups to target:

Demographics segmentation: Nike has segmented an Age and gender group that is
it has such products that serve male and female that has age range of 15-55.

Psychographics and behavioral segmentation: Nike has this segmentation to

answer that why consumers need its products and what the consumers have interest
and purchasing habits. So regarding this Nike segments its market which includes:

• Sports or athletic oriented

• Active lifestyle (interest in fitness and exercise for recreation)

Geographic segmentation: On the basis of this, Nike has segmentation to serve its
target customers all over the world. It has major markets in USA, Asia-pacific
Europe, Africa but it has continuous objective to cater markets in other countries as
well like North-America, China, Japan, and Middle-East etc. (Nike Inc, 2016)

Targeting

As for market segmentation, Nike has niche market to serve that is Nike focuses
and targets athlete or sportsperson segment and provides required products to them
as footwear and apparel products, which have quite specific and unique feature as
compared to other footwear products.

Following are the some target strategies of Nike: Its target strategies include
aggressive marketing to make aware its target consumers about its product and
even Nike make its target consumers enable to get their desired products through
customization process as own signature shoe is offered to athlete that is it enabled
Michael Jordan to have his name Jordan shoes.

Apart from this, its targeting strategies include sponsorship of its products through
sports team or celebrities. It has objective of styling its product through
psychological tactics on target market by linking triumph with apparel that is
products are viewed as victory when sponsorship is done by athlete celebrities
(Marketing strategy of Nike) Another targeting strategy is Nike cross training
established in 1989 which caters all the athlete participants all over the world and
trains different sport activities which has also become way to make its target
market satisfied.

Market Positioning

Nike has positioned itself in the mind of its target customers as a leader in sports
goods. It has made such products that satisfy its niche market with all products
related to sports. Its slogan ‘Just do it’ has made an appeal to target customers to
buy the product with sense of inspiration and confidence and which has made it
major competitor in athlete industry. Its positioning statement is ‘For every serious
athlete Nike provides perfect shoe or sports products that gives confidence for
every sport activity ’
RESEARCH METHODOLOGY

Research Comprise defining and redefining problems formulating hypothesis or

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

RESEARCH DESIGN
TYPE OF RESEARCH

Descriptive research

Descriptive research includes Surveys and fact - finding enquiries of different

kinds. The main characteristics of this method are that the researcher has no
control over the variables: he can only report what has happened or what is
happening.

DATA SOURCES

There are two types of data.

Source of primary data for the present study is collected through Questionnaire and
answered by Consumers of Nike shoes. The secondary data is collected from
journals, books and through Internet search.
PRIMARY DATA

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

SECONDARY DATA

For the Company information we have used secondary data like brochures, website
of the company etc. The Method used by me is Survey Method as the research
done is Descriptive Research.

RESEARCH INSTRUMENTS
Selected Instrument for Data Collection for Survey is Questionnaire.

Hypothesis

A hypothesis is a specific, testable prediction. It describes in concrete terms what

we expect will happen in a certain circumstances .

A research hypothesis is the statement created by researchers when they speculate

upon the outcome of a research or experiment. Every true experimental design
must have this statement at the core of its structure , as the ultimate aim of any
experiment.

The hypothesis is generated is via a number of means but is usually the result of a
process of inductive reasoning where observations lead to the formation of theory

PURPOSE OF HYPOTHESIS

A hypothesis is used in an experiment to define the relationship between two

variables. The purpose of a hypothesis is to find the answer to a question . A
formalized hypothesis will force us to think about what results we should look for
in an experiment.

The first variable is a called the independent variable. This is the part of the
experiment that can be changed and tested. The independent variable happens first
and can be considered the cause of any changes in the outcome. The outcome is
called the dependent variable The independent variable in our previous example
is not studying or a test. The dependent variable that you are using to measure
outcome is your test score

Hypothesis testing is two types-

 Null hypothesis (Ho):

A type of hypothesis used in statistics that proposes that
no statistical significance exists in a set of given
observations. The null hypothesis attempts to show that
no variation exists between variables, or that a
single variable is no different than zero. It is
presumed to be true until statistical evidence nullifies it
for an alternative hypothesis.

 Alternative hypothesis-
Alternative hypothesis is the "hypothesis that the
restriction or set of restrictions to be tested does
NOT hold." Often denoted H1. A hypothesis to be
adopted if a null hypothesis proves implausible
(unlikely), where exposure is linked to disease.
See Hypothesis testing.
The null hypothesis is specifically formulated for
testing for possible rejection or nullification.

Hence the name null hypothesis. It is accompanied by an

alternative hypothesis
 Questionnaire
Age: Profession:

Gender:

1. Do you prefer wearing sport shoes?

(a) Yes
(b) No
2. Do you like Nike footwear products?
(a) Yes
(b) No
3. Do you think prices of Nike footwear is expensive?
(a) Yes
(b) No
4. Are you a brand conscious of footwear?
(a) Yes
(b) No
5. Do you consider specific element when you select your footwear- like
price, brand , comfort, quality , packaging...

(a) Yes
(b) No
6. Have you bought any footwear influenced by any ways of marketing of
branding programs?
(a) Yes
(b) No
7. While buying , do you consider environment friendliness in footwear?
(a) Yes
(b) No
8. Do you know Nike is offering personalised or customized footwear?
(NikeiD)
(a) Yes
(b) No
9. Have you bought any customised or personalised footwear?
(a) Yes
(b) No
10.Do you think prices of Nike footwear is expensive?
(a) Yes
(b) No
11.Do you think Nike footwear needs to come up with more varieties in
ladies segment?
(a) Yes
(b) No
12.Are you satisfied with the quality of preferred brand?
(a) Yes
(b) No
13.Do you normally switch over the brand?
(a) Yes
(b) No
14.Do you prefer Indian brands over International brands ?
(a) Yes
(b) No
 15.Does advertising play any role in selection of brands of shoes?
(a) Yes
(b) No
16.Is there any impact of advertisement and celebrities on purchase ?
(a) Yes
(b) No

Disclaimer: This Survey is conducted only for academic purpose

and no data will be revealed or shared with anyone.