1 | P a g e

NIMS INSTITUTE OF MANAGEMENT &COMPUTER SCIENCE

AN ASSIGNMENT ON RESEARCH METHODOLOGY

Title:- comparative study of Nike and Reebok

SUBMITTED BY: -Anand kumar sagar(M.B.A. 2nd sem)

SESSION:-2011-2012

SUBMITTED TO :- Dr.Sudhinder Singh Chauhan (Assitance professor)

2 | P a g e

S.NO PARTICULATES PAGE

NUMBER

1 EXECUTIVE SUMMARY 3

2 INTRODUTION 4

3 ORIGIN OF COMPANY 5-6

4 SWOT ANALYSIS 7-9

5 RESEARCH METHODOLOGY 10-11

QUESTIONARY 12

6 DATA ANALYSIS 13

FINDINGS 18

7 SUGGESTIONS& RECOMMANDATIOS 19

8 COCIUSION 20

9 BIBLIOGRAPHY 20

10 RESEARCH & ITS TYPES

3 | P a g e

11 SAMPLE & ITS TYPE

EXECUTIVE SUMMARY

Nike. is a marketer of sports apparel and athletic shoes. The German manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large multinational enterprise. In keeping with the brand image is its association with the distinctive logo and its advertising slogan, "Impossible is Nothing." In order to maintain and sustain this image, the company makes huge investments in advertising and brand promotion. At the critical time of global economic crisis, Adidas will react to the consumers’ pessimistic attitude and stressful emotion during this period. It may become a good chance for Adidas because it can take advantage of its previous advertising way of“Impossible is Nothing” campaign by sponsoring sports stars to express the corporate philosophy of grit, determination, passion and humor, giving people more courage and psychological comfort in face of economic crisis. But besides that, we also focus more about family function especially in Asian countries which emphasize a lot on family, which can provide caring emotional communication. Therefore, from both strong-willed hero worship and water-like fork environment, customers can easily link Adidas image with not only strength, but also warmth. The preferred media we choose are TV, specific magazines, outdoor and internet.

4 | P a g e

INTRODUCTION:-

Nike, Inc.is a major publicly traded clothing, footwear, sportswear, and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, in 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 US$18.6 billion in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon, according toThe Oregonian

The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bower man and Phil Knight and officially became Nike, Inc. on May 30, 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 colen , Umbro andConverse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high profile aIthletes and sports teams around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo.

5 | P a g e

ORIGIN OF COMPANY:-Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making most sales at track meets out of Knight's automobile.

According to Otis Davis, a student athlete whom Bowerman coached at the University of Oregon, who later went one to win two gold medals at the 1960 Summer Olympics, Bowerman made the first pair of Nike shoes for him, contradicting a claim that they were made for Phil Knight. Says Davis, "I told Tom Brokaw that I was the first. I don't care what all the billionaires say. Bill Bowerman made the first pair of shoes for me. People don't believe me. In fact, I didn't like the way they felt on my feet. There was no support and they were too tight. But I saw Bowerman make them from the waffle iron, and they were mine.

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 Swoosh newly designed 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 February 1972, BRS introduced its first line of Nike shoes, with the name derived from the Greek goddess of victory. In 1978, BRS, Inc. officially renamed itself to Nike, Inc. Beginning with Ilie Năstase, the first professional athlete to sign with BRS/Nike, the sponsorship of athletes became a key marketing tool for the rapidly growing company.

The company's first self-designed product was based on Bowerman's "waffle" design. After the University of Oregon resurfaced the track at Hayward Field Bowerman began experimenting with different potential outsoles that would grip the new urethane track more effectively. His efforts were rewarded one Sunday morning when he poured liquid urethane into his wife's waffle iron. Bowerman developed and refined the so-called "waffle" sole, which would evolve into the now-iconic Waffle Trainer in 1974.

By 1980, Nike had attained a 50% market share in the U.S. athletic shoe market, and the company went public in December of that year.[9] Its growth was due largely to "word-of-foot" advertising (to quote a Nike print ad from the late 1970s),

6 | P a g e

rather than television ads. Nike's first national television commercials ran in October 1982, during the broadcast of the New York Marathon. The ads were created by Portland-based advertising agency Wieden+Kennedy which had formed several months earlier in April.

Together, Nike and Wieden+Kennedy have created many print and television advertisements, and Wieden+Kennedy remains Nike's primary ad agency. It was agency co-founder Dan Wieden who 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 enshrined in the Smithsonian Institution Walt Stack was featured in Nike's first "Just Do It" advertisement, which debuted on July 1, 1988. Wieden credits the inspiration for the slogan to "Let’s do it", the last words spoken byGary Gilmor before he was executed.]

Throughout the 1980s, Nike expanded its product line to encompass many sports and regions throughout the world

7 | P a g e

Adidas has two lager competitors Nike and Rebook. Besides that it would have several small competitors. A SWOT analysis would be helpful to understand the competitive environment.

SWOT Analysis Nike, Inc.

A SWOT analysis comprise of strength, Weakness, Opportunity and Threats. These four trends are analyzed below.:-Strengths.

Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage. Nike has no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization.

Nike is strong at research and development, as is evidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or better specification), Nike will move production.

Nike is a global brand. It is the number one sports brand in the World. Its famous 'Swoosh' is instantly recognizable, and Phil Knight even has it tattooed on his ankle.

Weaknesses. The organization does have a diversified range of sports products.

However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes.

The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into

8 | P a g e

retailers. Retailers tend to offer a very similar experience to the consumer. Can you tell one sports retailer from another? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.

Opportunities. Product development offers Nike many opportunities. The brand is

fiercely defended by its owners whom truly believe that Nike is not a fashion brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. Some would argue that in youth culture especially, Nike is a fashion brand. This creates its own opportunities, since product could become unfashionable before it wears out i.e. consumers need to replace shoes.

There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profits.

The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable income to spend on high value sports goods. For example, emerging markets such as China and India have a new richer generation of consumers. There are also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics.

Threats. Nike is exposed to the international nature of trade. It buys and

sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands.

The market for sports shoes and garments is very competitive. The model developed by Phil Knight in his Stamford Business School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Competitors are developing alternative brands to take away Nike's market share.

9 | P a g e

As discussed above in weaknesses, the retail sector is becoming price competitive. This ultimately means that consumers are shopping around for a better deal. So if one store charges a price for a pair of sports shoes, the consumer could go to the store along the street to compare prices for the exactly the same item, and buy the cheaper of the two. Such consumer price sensitivity is a potential external threat to Nike.

10 | P a g e

RESEARCH METHODOLOGY:

RESEARCH OBJECTIVE

1). to identify the popularity in Indian market of Nike and Rebook.

2). Comparative analysis of these two brands.

3)to find out the customer satisfaction level by using these two .

HYOPOTHESIS& ASSUMPTIONS:-

1) Nike and Reebok both have same popularity in Indian market.

2) Each brand has equal level of satisfaction for consumer.

Research Methodology of the project is as follows:

Universe: - The population for this particular study consists of students, working people, athlete,

POPULATION:- 200.

Sampling unit: - The sampling unit of this research consists of 20 respondent . in which

Students:-5, athlete:-5, working people:-5, other:-5 all are form jaipur city.

Sampling design: - Exploratory design

11 | P a g e

Sampling method: - Random sampling

Method of data collection: - The method of data collection was a field research and the material used in study was a survey (questionnaire). In order to assess the job satisfaction.

Satisfaction Questionnaire (MSQ) was used. The questions of the survey were adapted to the hospital environment in order for them to be compatible with the research. The survey consisted of a

LIMITATIONS OF THE STUDY:-

1. Time Consuming:-Many respondents do not return the Questionnaire in time despite of several reminders

2. . Inaccurate access-Risk of colleting incomplete and wrong information as people is unable to understand questions properly.

3 Non response-many people do not respond and returned the questionnaire without answering all questions.

4. Questionnaire method cannot to use for illiterate persons.

12 | P a g e

QUESTIONARIES:-

Q1 Which brand of shoe you have?

a) Nike b) reebok c) other.

Q2 what is your age group?

a) 10-20 b) 20-30 c) above 30year

Q3.What is your salary group?

a) 5000-10000 b) 10000-20000 c) above 20000

Q4.Which brand do you prefer in level of comfort?

a) Nike b) Reebok c)Any other

Q5.Which brand has long life?

a) Nike b) Reebok c) any other

Q6.Which brand has more popularity?

a) Nike b) Reebok c)Other

Q7.Which bran would you like to suggest your friend to purchase?

a) Nike b)Reebok c) Other

Q.8 Which brand is more affordable?

a) Nike b) Reebok c)Any other

13 | P a g e

DATA ANALYSIS:-

Q1 Which brand of shoe you have?

a)Nike b) reebok c) other.

Ans. Nike :-10 Reebok:-8 Other :- 2

NIKEREEBOKOTHER

Q2 what is your age group?

a)10-20 b) 20-30 c) above 30year

14 | P a g e

NIKE REEBOK

Ans. 10-20yr:- 8 6

20-30:- 2 1

Above30: 2 1

NIKE REBOOK0123456789

20-Oct20-30ABOVE30

TYPES OF SHOE

Q3.What is your salary group?

a)5000-10000 b) 10000-20000 c) above 20000

Ans. Nike Reebok Other

5000-10000 3 4 2

10000-20000 2 3 1

Above20000 1 3 1

NIKE REEBOK ANY OTHER0

0.51

1.52

2.53

3.54

4.5

5000-1000020000-30000ABOVE3000

15 | P a g e

Q4.Which brand do you prefer in level of comfort?

a) Nike b) Reebok c)Any other

Ans. Nike- 14 Reebok:-4 Any other:-2

NIKE REEBOK ANY OTHER02468

10121416

Series 1

Q5.Which brand has long life?

a)Nike b) Reebok c) any other

Ans. Nike:-13 Reebok:-6 Any other;-1

NIKE REEBOK ANY OTHER0

2

4

6

8

10

12

14

Series 1Series 2Series 3

Q6.Which brand has more popularity?

a)Nike b) Reebok c)Other

16 | P a g e

Ans. Nike:-16 Reebok:- 4 Other:-0

Q7.Which brand would you like to suggest your friend to purchase?

a)Nike b)Reebok c) Other

Ans Nike:-14 Reebok:-5 Other:-1

NIKE REEBOK ANY OTHER02468

10121416

Series 1Series 2Series 3

2Q.8 Which brand is more affordable?

NIKE REEBOK ANY OTHER02468

1012141618

Series 1Series 2Series 3

17 | P a g e

a) Nike b) Reebok c)Any other

Ans. Nike:- 12 Reebok:-6 Any other:-2

NIKE REEBOK ANY OTHER0

2

4

6

8

10

12

14

Series 1

Series 1

18 | P a g e

FINDINGS:-

1). Nike is more preferable than Reebok.

2).Nike is in rage in the age group of 10-20. This is young group.

3). Reebok is more acceptable for all salary.

4).Nike is more comfortable than other shoe.

5).Nike is more long lasting product i.e. it uses high quality of raw material.

6).Nike is more popular than other shoe.

7).Nike is more suggested shoe.

8).Nike is more preferable.

19 | P a g e

SUGGESTIONS & RECOMMEANDATIONS:-

1).Should make more economical for the consumer.

2).should be reachable for every segment of market.

3).should market new competitive strategies for the dynamic market.

4) Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands. This must be removed by using material management.

20 | P a g e

CONCLUSION:-

Nike is more preferable than other shoe. This company is more popular than any other company in shoe industry. it is more preferable in young group. The popularity shows that it has well and constructed way of marketing that people is more aware than other shoe company.

Nike has JIT (just in time) material policies due to this it reduces the production it makes the company to price its product is economical pricing which is easy to reach for consumer.

Bibliography:- http://en.wikipedia.org/wiki/Nike,_Inc. http://www.marketingteacher.com/swot/nike-swot.html www.slideshare.net/dolly_g/nike-vs-reebok-8917122 - United

States