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WHAT IS CONSUMER BEHAVIOR? Consumer Behavior is the Mental and Physical Activities undertaken to Acquire, Consume and

Dispose the Products and Services so as to fulfill Needs and Wants. Physical Activity: Buying a product; preparing a product for consumption, etc. Mental Activity: Evaluating a product in your mind NEED: A Discomforting Human Condition

WANT: A Desire for a Specific Product so as to Alleviate That Condition

AdidasAdidas is a large and very popular sports company. It ranks second after the Nike company. Thiscompany is manufacturing sporting goods, namely: shoes and apparel, as well as many other products.

Today, the Adidas company is a very large network of sportswear sales. its shops are in many countries,there are many retail outlets, manufacturing companies located in Indonesia, China, Thailand, Germany.Each year, the company gets a big turnover, which amounts 6 billion euros. All this data suggests thatthis is one of the largest, most expensive and reliable company in the world.

CUSTOMER SURVEY ANALYSIS

Adidas have conducted the survey of adidas customers to analyze the willingness of thecustomers in India. So according to our survey we have drafted a graph.

There are various prices on the x-axis and on y-axis we have the percentage population.

Percentage of customer who are willing to pay the prices according to their affordability.

As it is clear from the graph when we asked to customer if we are providing you the pairof adidas shoes at just 1000-1499 price. We have only 7% people who are ready to buythe shoes at these prices.

Most of them are putting question on the quality of the product so in spiteof buying adidas at this price they are ready to pay these to some cheaper product ofmatching quality. Hence we have the less percentage.

Then we increased our price to1500-1999, and then we have 25% of the population. Mostof them are ready to buy at these prices just coz they believe that adidas may notcompromise with the quality. And these prices they can afford.

CONSUMER BEHAVIOR

The womens category is largely unorganized, in fact close to 95% of the category isunorganized. With respect to the rest of the world, this is an anomaly as the womens.

Advertisement Effectiveness & Marketing Communication of Adidas category ismajorly organized and forms a big chunk of the market.

At present, almost all of the organized retailers in the womens footwear category arelocated in the metros and Tier I cities and towns.The Tier II and Tier III towns have over the last few years seen a spurt in income drivenby the service industry boom. Hence these towns definitely are a potential target.

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Bata Bata India is a footwear manufacturing company incorporated in 1931.The Company was

earlier known as Bata shoe Company which later in 1973 changed the name to BATAINDIA

Incorporated in 1931. Subsidiary of the Bata Shoe Organization. Indias largest footwear company, selling 60 million pairs of shoes annually Dogged by labour problems, overstaffing and subsequent losses Though recognized as a household name in India, Bata suffered greatly after the liberalization. Repositioned itself as a market-driven, fashion-conscious lifestyle brand with an emphasis on

service and production. Introduced Flagship, City, Family and Bazaar stores that cater to different segments of the market

Over 1,100 retail stores The retail outlets also sell accessories, likes hoes laces, socks, and shoe polish. Capitalise on its vast retail network Trying to generate volume business in un-represented and under-represented footwear markets

Consistently trying to leverage on its established brands, while creating a niche for its newbrands.

CONSUMER/MARKET ANALYSIS Indian Footwear Indian Footwear Market about Rs19,900 crore with a growth rate of 8-

10percent [according to the data provided by market advisors in September 2011].

The category covers casual, formal semi formal and sports shoes along with Sandals for men andwomen.

Mens segment accounts for 59percent of the market, while womens segment contributes 41

percent.

By products, the Indian footwear market is dominated by casual footwear market that makes upfor nearly two third of the total footwear retail market.

The overall share of organized retail is 20percent and is expected to reach 25-30percent by2015.

Scenario

Bata has been a household brand in India for decades. Everyone in some part (mostly in school days)have touched Bata brand. In the resent decade or so the footwear industry has evolved quite a bit withintroduction of newer brands. This as cost Bata a significant share of market. Though Bata has honestlytried to reach out to its consumers by having significantnumber of stores, it has not been able to communicate the products to its consumers.

This is mainly because Bata pushes (bombards) all its sub-brands and products in a single store withoutactually communicating them to the outside world. For the present day consumer a Bata store just sellsschool shoes.

ActionDevelop a new brand within the existing brandsThe 15 brands which come under Bata for the Indian market could be further classified into 3 or 4 subbrands, making a hierarchy of Main brand, Group Brand and Sub Brand. The introduction of group brandwould be based on age, occasion and usage basis. For example, school and kids, formal & club, sports

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and recreation. This means that the main brand is broken down into exact focus group which can be dealtwith a focused strategy.

Ambassador, is one such group brand which would encompass the existing formal and club wear sub

brands ie. Moccasino, Ambassador, Hush Puppies, Marie Claire. Having the name from one of theexisting sub brands makes it easier for brand recall of the existing consumer who is aware of the brand.

Deliverable SolutionCommunicationThe primary communication of the group brand such as ambassador can be done with two strategies,one being converting the existing store planogram according to group brands with individual in-storevisuals / Shop in shop formats.

Second one being converting an entire store into group brand, say ambassador itself is a standalonestore. Of the two, the later seems to be more viable considering there are quite a few Bata stores in thesame locality. Converting them into group specific store in a strategic location would build directcommunication.

Puma

Puma SE is a Germany-based company engaged in manufacture of sporting equipment, operatingworldwide through its subsidiaries. The Company designs, develops and markets a range of sports andsport lifestyle articles and divides its operations into three segments: Footwear, Apparel, andAccessories. Its footwear range includes shoes for cross training, motor sports, running, soccer, tennisand other activities. The Companys apparel line offers t-shirts, track jackets, pants, and hoodedsweatshirts. Accessories include backpacks, belts, headwear, socks and utility bags. The Companymarkets its products under the Puma, Tretorn and Cobra Golf brand names. The Company tailors itsproducts to customers active in various sports, including tennis, motor sports, running, golf, baseball,cricket and soccer. The Company has own retail operations, as well as licenses out various productsegments, such as watches, fragrances and eyewear. PPR Group is the Company's majority stakeholder.

Key Brand Communication Decisions

Puma Fashion ShowsAs Puma ventures into the fashion world with their sport lifestyle masterbrand, fashionable subbrands, and designer collections they are beginning toreach new audiences through differentcommunication channels. Puma nowhosts seasonal fashion shows at sleek facilities at fashionhot spots aroundthe world. Shows are typically media rich events that combine live djs,visualmultimedia, and models wearing the latest and hippest products from Puma. The vibrance,energy and perpetual motion of the event mirror the PUMA brandaesthetic, and attracts sportlifestyle consumers from across the globe. Theseevents attract a multitude of retail purchasersallowing Puma to expand intonew market outlets. These types of events help Puma differentiatethemselveseven further from their traditional competitors: Adidas and Nike

Puma Concept Retail StoresPUMA has taken the sport-fashion concept a step further by creating a brandedstore environmentthat showcases its cutting edge designs andcollaborative projects. The design intent of thePUMA concept a place wherethe PUMA energy is evident, promotes city style, and encouragescasualshopping. Puma has developed a strong design image through its stores inAmerica andEurope and although there is a strong unifying style, each storehas its own characteristics defnedby local culture and site constraints. PUMAConcept Stores utilize the jumping cat branding as itsfocal point or designdirection and each of the fixtures in the store is inspired by sport and it

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isdesigned to be a place where all ofPUMAs sport-fashion brands can inter sectand interact in aunique way. Features that are often integrated into the retail environment designinclude signature internally illuminated niche walls,folding ceiling and wall panels, internallyilluminated cantilevered shelving,display boxes and the large feature arch at the entry to thestore. In addition,the concept stores often host signature events such as Mongolian

shoebbqs,fashion shows, and dj hosted dance parties

Puma Stores - Providing Rich Customer InteractionsPumas retail experience is replacing the brand message as their primary promotional deliveryvehicle. Retail continues to grow in importance as a showcase or the brand and as a way ofgetting more innovative products to the consumer. In 2006, Puma opened20 new Conceptstores and countless more PUMA stores and outlets. The concept stores serve as the epicenter ofthe Puma brand, providing consumers with a more holistic experience by enabling interactionwith their customers on different levels, displaying the depth of the brand while creating evenmore opportunity or discovery. In addition, Concept Stores host the Mongolian BBQ, whereconsumers can design their own personalized shoes. In 2006, Puma retail has been used to

introduce exclusive product launches, as well as other unique brand driven consumer events

Cultural Connection and personal expression value

Dedicated to using the most advanced technology in creating products that realizes the fullest

potential of its user, PUMA has remained in a pinnacle position in the world of sports.However, in recent years, Puma has bravely ventured into the realm of fashion and has provedequally successful, garnering great following by the young and trendy. Combining athleticsensibilities with fashion chic, PUMA has remained in the forefront of style with its classic stylesunleashing unlimited potential. From the style capital of Paris to the streets of Tokyo, PUMA ispresent everywhere - a must have item or the fashionable crowds. Pumas diverse offering

of products ultimately allow their customers to express their individuality through trend settingstyle and fashionable utility.Frequent product launches & a cornucopia of styles

New product launches, seasonal styling changes, customer focused events, and new retail storeopenings help keep the Puma brand fresh in the minds of consumers. Interestingly enough, Pumacommunicates the cutting edge of fashion and active lifestyle trends through fresh footwear andapparel designs that combine material, colors, and styles into products that resonate withcustomers

NikeNike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under thename, Blue Ribbon Sports. Our modest goal then was to distribute low-cost, high-qualityJapanese athletic shoes to American consumers in an attempt to break Germany's domination ofthe domestic industry. Today in 2000, Nike Inc. not only manufactures and distributes athleticshoes at every marketable price point to a global market, but over 40% of our sales come fromathletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions:

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United States, Europe, Asia Pacific, and the Americas (not including the United States). Weutilize over 20,000 retailers, Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, andinternet-based Web sites to sell our sports and leisure products. We dominate sales in the athleticfootwear industry with a 33% global market share. Nike Inc. has been able to attain this premierposition through "quality production, innovative products, and aggressive marketing."As aresult, for the fiscal year end 1999, Nike's 20,700 employees generated almost $8.8 billion inrevenue.Advertising and Promotion

Nikes brand images, including the Nike name and the trademark Swoosh, are considered to

represent one of the most recognizable brands in the world. This brand power translates intobottom-line revenues. The Nike name and associated trademarks have appeared everywhere fromplayers' shirts, pants, and hats to stadium banners and walls. Aggressive advertising campaigns,celebrity endorsements, and quality products enhance the brand. Nike demonstrated an exampleof Nikes brand presence at the 1999 NCAA Basketball tournament when 42 of the 64 teamsparticipating wore shoes provided. Nike's most recent brand-building endeavors are focused onstrengthening our association with womens sports. Some examples are our sponsorship of the

1999 Women's World Cup Soccer Tournament and our sponsorship of the U.S. Speedskatingteam in the upcoming 2002 Winter OlympicsAdvertisingIn 1982, Nike aired its first national television ads, created by newly formed ad agencyWieden+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 toreceive that honor twice. Nike also has earned the Emmy Award for best commercial twice since theaward was first created in the 1990s. The first was for "The Morning After," a satirical look at what arunner might face on the morning of January 1, 2000 if every dire prediction about the Y2Kproblem came to fruition. The second was for a 2002 spot called "Move," which featured a series offamous and everyday athletes in a variety of athletic pursuits.

Sponsorship

Nike pays top athletes in many sports to use their products and promote and advertise their technologyand design.Nike's first professional athlete endorser was Romanian tennis playerIlie Nstase. The first

track endorser was distance runnerSteve Prefontaine. Prefontaine was the prized pupil of the company's

co-founder, Bill Bowerman, while he coached at the University of Oregon. Today, the Steve Prefontaine

Building is named in his honor at Nike's corporate headquarters.Nike has also sponsored many other

successful track and field athletes over the years, such as Carl Lewis, Jackie Joyner-

Kersee and Sebastian Coe. The signing of basketball playerMichael Jordan in 1984, with his subsequent

promotion of Nike over the course of his career, with Spike Lee as Mars Blackmon, proved to be one of

the biggest boosts to Nike's publicity and sales.Nike was the official kit sponsor for the Indian cricket

team for five years, from 2006 until the end of 2010. Nike sponsors some of the leading football national

teams.Nike is a major sponsor of the athletic programs at Penn State University and named its first child

care facility afterJoe Paterno when it opened in 1990 at the company's headquarters. Nike originally

announced it would not remove Paterno's name from the building in the wake of the Penn State sex

abuse scandal. After the Freeh Report was released on July 12, 2012, Nike CEO Mark Parker announcedthe name Joe Paterno would be removed immediately from the child development center. A new name

has yet to be announced.

Nikes Reuse-A-Shoe Program Promoting Social ResponsibilityNike first started by collecting athletic shoes at key retail locations and shortly thereafter teamed up withtheNational Recycling Coalitionto establish shoe collections in communities across the country.Reuse-A-Shoestands as one of Nikes longest-running environmental community programs and is an integralpart of the companys goal of closing the loop on its manufacturing process and promotingsocial

http://en.wikipedia.org/wiki/Wieden%2BKennedyhttp://en.wikipedia.org/wiki/New_York_Marathonhttp://en.wikipedia.org/wiki/Emmy_Awardhttp://en.wikipedia.org/wiki/Year_2000_problemhttp://en.wikipedia.org/wiki/Year_2000_problemhttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Ilie_N%C4%83stasehttp://en.wikipedia.org/wiki/Ilie_N%C4%83stasehttp://en.wikipedia.org/wiki/Ilie_N%C4%83stasehttp://en.wikipedia.org/wiki/Steve_Prefontainehttp://en.wikipedia.org/wiki/Bill_Bowermanhttp://en.wikipedia.org/wiki/University_of_Oregonhttp://en.wikipedia.org/wiki/Track_and_fieldhttp://en.wikipedia.org/wiki/Carl_Lewishttp://en.wikipedia.org/wiki/Jackie_Joyner-Kerseehttp://en.wikipedia.org/wiki/Jackie_Joyner-Kerseehttp://en.wikipedia.org/wiki/Sebastian_Coehttp://en.wikipedia.org/wiki/Michael_Jordanhttp://en.wikipedia.org/wiki/Spike_Leehttp://en.wikipedia.org/wiki/Mars_Blackmonhttp://en.wikipedia.org/wiki/Indian_cricket_teamhttp://en.wikipedia.org/wiki/Indian_cricket_teamhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Penn_State_Universityhttp://en.wikipedia.org/wiki/Joe_Paternohttp://www.nrc-recycle.org/http://www.nrc-recycle.org/http://www.nrc-recycle.org/http://www.nikereuseashoe.com/http://www.nikereuseashoe.com/http://www.nikereuseashoe.com/http://www.nikereuseashoe.com/http://www.nikereuseashoe.com/http://www.nikereuseashoe.com/http://www.nrc-recycle.org/http://en.wikipedia.org/wiki/Joe_Paternohttp://en.wikipedia.org/wiki/Penn_State_Universityhttp://en.wikipedia.org/wiki/Association_footballhttp://en.wikipedia.org/wiki/Indian_cricket_teamhttp://en.wikipedia.org/wiki/Indian_cricket_teamhttp://en.wikipedia.org/wiki/Mars_Blackmonhttp://en.wikipedia.org/wiki/Spike_Leehttp://en.wikipedia.org/wiki/Michael_Jordanhttp://en.wikipedia.org/wiki/Sebastian_Coehttp://en.wikipedia.org/wiki/Jackie_Joyner-Kerseehttp://en.wikipedia.org/wiki/Jackie_Joyner-Kerseehttp://en.wikipedia.org/wiki/Carl_Lewishttp://en.wikipedia.org/wiki/Track_and_fieldhttp://en.wikipedia.org/wiki/University_of_Oregonhttp://en.wikipedia.org/wiki/Bill_Bowermanhttp://en.wikipedia.org/wiki/Steve_Prefontainehttp://en.wikipedia.org/wiki/Ilie_N%C4%83stasehttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Year_2000_problemhttp://en.wikipedia.org/wiki/Year_2000_problemhttp://en.wikipedia.org/wiki/Emmy_Awardhttp://en.wikipedia.org/wiki/New_York_Marathonhttp://en.wikipedia.org/wiki/Wieden%2BKennedy

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responsibility. More than 1.5 million pairs of post-consumer shoes are collected for recycling each year.This is in addition to thousands of tons of manufacturing scrap material that is recycled. Since the

program began, theyve collected more than 21 million pairs of used athletic shoes.

ReebokTheReebokbrand has struggled with several years of steady decline. At one point in the 1980s it

was - briefly - the world's top-selling sports shoe, but its position has slipped steadily ever since.Like its rivals, the company felt the pinch from the global shift away from white trainers in thelate 1990s. Reebok was a little slower to manage a rebound, despite diversification into otherclothing lines, such as Rockport walking shoes and boots. More recently, the group scored a hitwith its street-oriented Rbk range which was closely aligned with the rap music and urban

fashion markets and in 2005, the company agreed to be acquired byAdidasfor around $3.8bn,creating a significantly stronger competitor to leaderNike. Yet despite the best efforts of Adidasthe brand suffered fresh declines over the next couple of years, falling behind rival Puma in 2008to languish in last place among the big four brands. There were, finally, signs of a turnaroundfrom 2009 as a result of the success of new fitness sub-brands CrossFit and Easytone, but thesehave coincided with a continuing steady erosion of the brand's profile in professional sports.

Direct relationships with contract factoriesWe contract directly withsome factories. These direct relationships account for 28% of appareland95% of footwear production by volume/spend. These factories are often part of a largecompany with factories in several locations. The Reebok country office in each location overseesthis manufacturing.Sourcing through agentsSome orders are placed through agents, whoselect the factories subject to our approval. Most ofour apparelmanufacturing in Asia is purchased through agents. In footwear manufacturing mostorders are placed directly, but we also work withthree agents.Subcontract factories

Occasionally factories may subcontract parts of anorder to another factory.Reebok has classified its retail stores in following three categoriesA storedeals with new products and normally these stores do not provideany discount on products as theproducts are new in market. In IndiaReebok is having 30 % of Atype stores.B storedeals with only old products which they get from the franchiseesafter a poor demand of theseproducts. B stores sales those products on ahigher discount rate. Reebok is having 10 % of Bstores in India.A plus B storedeals with both new and old products, thus it is acombination of A and B. in India Reebok is

having 60% A plus B stores

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