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LIVEPROJECT REPORT
To Study The Reasons For
Reduction In Sales In Nike
Brigade Store
And
Their Promotional Strategy
Effectiveness
Submitted by
ABHISHEK VATS
Reg No: 1321402
Under the Guidance of
Prof. Sreedhara Raman
INTRODUCTION
INDUSTRY REVIEW:
The global sportswear market was worth less than US$200 billion. By
2017, it is expected to grow to US$300 billion, providing massive opportunities
for global heavyweights, local players and niche companies aiming to expand
their business in the sportswear arena.
A high level of innovation, strong pricing and growing consumer concerns
about health and well-being are major factors contributing to the sportswear
industry’s solid performance. The global sportswear market was driven by the
US and three of the BRIC countries: Brazil, Russia and China, which combined
accounted for 60% of total global growth in actual terms. Internet retailing
emerged as the fastest growing channel in the sportswear industry, accounting
for six percent of total sportswear sales. Outdoor footwear was the fastest
growing category within sportswear, with global value growth reaching 8.5
percent.
Nike, Adidas, Puma and Reebok are some of the key players in the industry.
Under Armour and Lululemon Athletica are rapidly growths, newer
competitors in the market. Nike’s apparel sales grew at a CAGR of 12.3%
during fiscal 2010-2012, which was higher than the growth rate seen for
Adidas, Puma and Asics.
COMPANY PROFILE:
Nike, Inc. is an American multinational corporation that is engaged in the
design, development, manufacturing and worldwide marketing and selling of
footwear, apparel, equipment, accessories and services. The company is
headquartered near Beaverton, Oregon, in the Portland metropolitan area, and
is one of only two Fortune 500 companies headquartered in Oregon. It is one
of the world's largest suppliers of athletic shoes and apparel[3]
and a major
manufacturer of sports equipment, with revenue in excess of US$24.1 billion
in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more
than 44,000 people worldwide. The brand alone is valued at $10.7 billion,
making it the most valuable brand among sports businesses.
The company was founded on January 25, 1964, as Blue Ribbon
Sports, by Bill Bowerman and Phil Knight,[1]
and officially became Nike, Inc.
on May 30, 1971. 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 Hurley International and Converse. Nike also owned Bauer Hockey
between 1995 and 2008, and previously owned Cole Haan and Umbro.[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.
NIKE MARKET SHARE
Sports giant Nike is among the leading players in the sports apparel
market. Its market share in the global sports apparel market has historically
increased from 3.9% in 2007 to 4.9% in 2012 as its apparel sales grew at a pace
above industry average during the period.
We believe the company is well-positioned to grow its market share to 6.5% in
the long run on account of factors such as strong competitive position, rapid
sales growth, and participation in major sporting events as well as continued
launch of innovative products.
The major risks to Nike’s market share growth stem from increased competition
from niche and local players as well as due to counterfeit products. Nike’s
apparel sales have recently weakened in Western Europe and China, and if these
problems continue, it could affect Nike’s future growth. Nike brand apparel
accounts for 35% of our valuation for the company’s stock.
RESEARCH METHODOLOGY
TITLE OF STUDY
To study the reasons for reduction in sales in Nike brigade store and their
promotional strategy effectiveness.
STATEMENT OF PROBLEM
This study was conducted to analyze the effectiveness of the promotional
strategies adopted by the Nike store in Brigade and what are the reasons for
their sales coming down in the past few months.
SIGNIFICANCE OF STUDY
To know the value of the brand as per the consumer’s view and the promotional
activities effectiveness.
RESEARCH DESIGN
The research is descriptive in nature. Descriptive research, also known as
statistical research, describes data and the characteristics about the population or
phenomenon being studied. The description is used for frequencies, averages
and other statistical calculations. The study conducts a detailed research into the
characteristics and nature of the customers of Nike Brigade Store.
DATA COLLECTION
Population: Customers of Nike in Bangalore.
Sample: Customers chosen out of the total number of customers
Sample size: 100 customers from Bangalore region.
Sampling method: Convenience Sampling
TOOLS OF DATA COLLECTION
Simple questionnaires will be used for collection of primary data from the
respondents. Information from books, magazines and websites will be used for
collection of secondary data.
STATISTICAL TOOLS OF DATA ANALYSIS
Tables, pie diagrams, bar graphs, percentage analysis method etc. are
some statistical tools that will be used for representing analyzed data.
Table 1.1
Table showing how often customers have shopped at Nike Brigade Store
Responses Frequency
Never shopped before 10
1 to 3 times 65
More than 3 times 25
Total 100
Diagram 1.1
Table 1.2
Table showing how many customers prefer Nike Brigade Store over Indira Nagar Store
Responses Frequency
Yes 54
No 46
Total 100
Diagram 1.2
Frequency
Never shopped before
1 to 3 times
More than 3 times
Frequency
Yes
No
Table 1.3
Table showing the ranking of Nike promotion Advertisements observed by customers
Diagram 1.3
Table 1.4
Table showing how far customers are aware about Nikes latest launch Air Max
0
10
20
30
40
50
60
T.V Newspaper Magazines Social Media
Frequency
Responses Frequency
T.V 56
Newspaper 20
Magazines 12
Social Media 52
Responses Frequency
Yes 68
No 32
Total 100
Diagram 1.4
Table 1.5
Table showing whether customers know about Nike Runners Club Marathon held every
Sunday at Brigade Store
Diagram 1.5
Frequency
Yes
No
Frequency
Yes
No
Responses Frequency
Yes 28
No 72
Total 100
Table 1.6
Table showing whether the customers are satisfied with their purchase
Responses Frequency
Yes, a perfect match 36
No, I could not get 18
Ok, not to my complete satisfaction 46
Total 100
Diagram 1.6
Table 1.7
Table showing the customers remember the celebrities who acted in the ad.
Responses Frequency
Neymar Jr 53
LeBron James 18
Other Celebrities 29
Total 100
Frequency
Yes,a perfect match
No,I could not get
Ok,not to my compkete satisfaction
Diagram 1.7
Table 1.8
Table showing the satisfaction level of customers
Options Excellent Good Average Poor
Selection/Variety 63 71 11 5
Price Range 29 65 43 13
Quality 42 58 22 28
Latest Trends 55 64 17 14
Conduct of Sales staff 97 38 14 1
Store Ambience 27 52 10 4
Parking Space 60 70 17 2
Ease of reaching the store 65 73 10 2
Frequency
Neymar Jr
LeBron James
Other Celebrities
FINDINGS
This research shows that 65 Percent of the respondents have visited the shop more
than one time.
The study shows 10 Percent of the respondents were visiting the shop for the first
time. The respondents were mainly tourists who were visiting Brigade for the first
time.
According to this study, the customers mainly came to shop to purchase footwear’s.
One of the major issues faced by the Nike Store is to provide the customers with
parking space for which there is no special provision. Potential customers who are
willing to visit the Brigade Nike Store, prefer Nike stores available in malls and other
locations solely because of unavailability of parking space.
From this study we understood that most of the respondents were not fully satisfied
with what they purchased because they couldn’t find the exact product they were
looking for.
The research shows that around 50 Percent of the customers prefer Brigade but 46%
do prefer other stores especially Indira Nagar Store.
Out of the total respondents majority share of customers have seen Nike
Promotional activities on TV and Social Media and on the other hand
advertisements through newspapers and magazines had less impact.
About 53 Percent of the total respondents could recall Neymar Jr in Nike
Advertisements and 29 Percent had different Brand Ambassadors in their mind.
The entire range of Nike products available online is not available in retail outlets.
The respondents felt that the new range of Nike Air Max shoes is overpriced.
Respondents felt that the store ambience could have been better.
SUGGESTIONS
Respondents suggested that Nike should update their product collection on a regular
basis.
The store ambience could be improved with better lightning and more lively store
staff.
The pricing of the products of Nike could be made reasonable because the customers
who come in the store have the habit of comparing the store prices with the online
prices.
The customers visiting the store expect discounts and offers and therefore the Nike
Store should provide the customers with Seasonal offers and discounts, Clearance
Sales, and regular customers should be provided with points on their purchases so that
they could avail these offers on their future purchases.
The customers were expecting a better advertising approach from the store to capture
their attention, therefore, the Nike Store can put life size banners of known sports
people (Neymar Jr. in this case) and celebrities to grab the attention of the prospective
buyers.
Parking being one of the prime issues of The Nike Store, the can have a negotiation
with the Traffic Controller or the municipalities regarding renting the parking space in
front of the Nike Store which can be allotted specifically for the customers coming to
the Nike Store. This will add to the customer’s convenience and customer delight as
well.
CONCLUSION
Thus we can conclude from the research conducted to study the advertisement effectiveness
and customer satisfaction of Nike Store, Brigade Road, Bangalore.
In a comparative study between Nike Store, Indiranagar and Nike Store, Brigade Road, it was
found that the customers are not completely satisfied with the products and their service to a
good extend.
It is very important for every product to survive in the market. It must posses certain
novelties and qualities. It was found out that the TV sector is the major advertisement sector
noticed by the customers so new ads should be brought out every season with known Sports
celebrities to boost up the sales.
As Nike concentrates more on Sports wear other sections lack variety of collections such as
western wear which can be increased and which will lead to more sales .
NIKE STORE COMPARISON QUESTIONAIRE
Kindly fill in the following details.
Name..................................................................................................................................
Age .............................................................. Gender ........................................................
Profession..................................................... Contact ........................................................
1) How often do you shop at Nike Brigade store in a year ?
□ Never shopped before.
□ 1 to 3 times.
□ More than 3 times (Please mention................)
2) Do you Prefer Nike Brigade store over Indira Nagar store ?
□ Yes
□ No
3) If no, then why do you prefer Indira Nagar Store?
..........................................................................................................................................
4) Where all have you seen Nike promotion advertisements?
□ T.V advertisement
□ Newspaper
□ Magazines
□ Social Media
5) Have you heard about Nike’s new range of Sports shoes, Air Max?
□ Yes
□ No
6) If Yes, then how did you come to know about it ?
.........................................................................................................................................
7) Have you heard about Nike Runners Club Marathon held on every Sunday at Brigade
Road ?
□ Yes
□ No
8) Did you get what you wanted to buy when you last visited Nike Store, Brigade Road ?
Please tick what is relevant ?
□ Yes, a perfect match
□ No, I could not get
□ Ok, not to my complete satisfaction
9) Do you remember which celebrity acted in the recent ad of Nike ?
□ Neymar Jr.
□ LeBron James
□ Other celebrities
10) Please rate the following on your level of satisfaction at Nike Brigade Store:
Excellent Good Average Poor
Selection/ Variety
Price range
Quality
Latest trends
Products for your taste
Conduct of sales staff
Store ambience
Parking space
Ease of reaching the
store
11) Would you purchase again from Nike Brigade Store?
□ Definitely
□ Probably
□ Not sure
□ Probably not
□ Definitely not
12) Any improvements you like to be implemented in the Nike Brigade Store?
........................................................................................................................
