Project Report On Consumer Preference Between Sports Shoes of Adidas & Nike
Project Report On Consumer Preference Between Sports Shoes of Adidas & Nike
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CERTIFICATE
This is to certify that the research project entitled CONSUMER PREFERENCE BETWEEN
SPORTS SHOES OF ADIDAS & NIKE is an academic work done by Pankaj submitted in partial
fulfilment of the requirements for the degree of Bachelor of Business Administration to the Commerce
and Management Department of GGDSD College, Chandigarh, under my guidance and direction. To
the best of my knowledge and belief, the data and information presented by him in the project is his
original work and has not been submitted for the award of any other degree or diploma.
SIGNATURE:
DATE:
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ACKNOWLEDGEMENT
I have completed this study under the able guidance and supervision of Mr. Ankush; I will be failed in
my duty if I do not acknowledge the esteemed scholarly guidance, assistance and knowledge. I have
received from them towards fruitful and timely completion of this work.
Mere acknowledgement may not redeem the debt I owe to my parents for their direct/indirect
support during the entire course of this project.
I am also thankful to my friends who helped me a lot in the completion of this project.
PANKAJ
3
DECLARATION
I hereby declare that the project report entitled CONSUMER PREFERENCE BETWEEN SPORTS
SHOES OF ADIDAS & NIKE submitted for the degree of masters of Entrepreneurship and Family
Business, is my original work and the project report has not formed the basis for the award of any
diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other
university or institution for the award of any degree or diploma.
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TABLE OF CONTENTS
Introduction 6
Research Objective 7
Research Methodology 8
Scope 9
Limitations 10
Conclusion 36
Annexure 37-39
Bibliography 40
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INTRODUCTION
This project takes a look in various kinds of Merchandising activities, Market Share of different sports
shoes and various Sales Promotion schemes, which are followed in the Sports shoes industry. The two
major global players i.e. Nike, and Adidas dominate the sports shoes industry in India. India is one of
few battlegrounds in the world where there is neck-to-neck competition between the two.
In the 1980s, Adidas sneakers became popular amongst teenagers and young men. The Adidas sneaker
was popularized by the Run DMC song "My Adidas" and became a huge fashion trend. The Tapie
affair, the history of the company as presented by its official web site is incomplete, perhaps because it
is indirectly linked to financial scandals. After a period of serious trouble i.e. the death of Adolf
Dassler's son Horst Dassler in 1987, the company was bought in 1990 by Bernard Tapie, for 1.6 billion
French francs ($320 million), which Tapie borrowed. Tapie was at the time a famous specialist of
rescuing bankrupt companies, a business on which he built his fortune.
Nike is the world's #1 manufacturer and marketer of athletic footwear and apparel. Almost out of the
blue, the company established itself as one of the world's most familiar brands during the 1980s and
1990s.
As familiar as a Coke bottle or Big Mac, the Nike "swoosh" logo came to symbolize not just sports
culture, but street culture, as the appeal of the star players who endorsed the brand was carried onto
city streets. The approach of the new century set Nike new problems.
Trainers went (briefly) out of fashion, economic slowdown and labor problems hit Asian performance.
But the group bounced back, retaining its iron grip on the sporting apparel sector and still undisputed
leader in sports-oriented street wear.
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RESEARCH OBJECTIVE
• To know the customer preferences of the respondents regarding choices between Nike and Adidas
sport shoes.
• Find out factor influencing the people at the time of purchasing sport shoes.
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research problems: Consumer’s preference about the different branded sports shoes.
SAMPLING PLAN
-Interview
Source of data: Data required for the study was collected through primary and secondary sources i.e.
Market Survey. and the market area is:
CHANDIGARH.
• Internet: Information available on the official websites of Adidas and Nike, existing studies on
the consumer preferences regarding branded sport shoes.
Analysis of data: Data has been tabulated and analysed through percentages, pie charts and bar graphs
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SCOPE OF THE STUDY
Since majority of the respondents of the survey conducted for the study are college going students,
they are all teenagers. Such type of respondents have been preferred for sampling as sports shoes are
mostly worn by college going students which are of age 18-25 years.
As stated above, majority of the respondents are students and do not as such have an income of their
own. So the respondents were asked about their family income.
The area covered to study the consumer preferences regarding sport shoes is the colleges of
Chandigarh. Most of the respondents were the students of GGDSD College, Sector-32 and DAV
College, Sector-10
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LIMITATIONS OF THE STUDY
• A survey should involve a larger sample size, in my survey the sample size was limited,therefore the
findings of the survey can not be generalized.
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COMPANY PROFILE
INTRODUCTION
In 2003, Adidas filed a lawsuit in British court challenging Fitness World Tracing’s use of a two-stripe
motif similar to Adidas's three stripes. The court ruled that despite the simplicity of the mark, Fitness
World's use was infringing because the public could establish a link between that use and Adidas's
mark.
In 2005, Adidas introduced the Adidas 1, the first ever production shoe to utilize a microprocessor.
Dubbed by the company "The World's First Intelligent Shoe" it features a microprocessor capable of
performing 5 million calculations per second that automatically adjusts the shoe's level of cushioning
to suit its environment. The shoe requires a small, user replaceable battery that lasts for approximately
100 hours of running. It currently retails for $250 (USD). The latest edition Adidas 1.1 has been selling
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since Nov 2005. This is considered an upgrade of the version 1, claiming to be better, faster and
stronger.
Also in 2005, on May 2, Adidas told the public that they sold their partner company Salomon Group
for 485 million Euros to Amer Sports of Finland.
In August 2005, Adidas declared its intention to buy Anglo-American rival Reebok for US$ 3.8
billion. This takeover was completed in August 2005 and meant that the company will now have closer
business sales as those of Nike in Northern America. The acquisition of Reebok will also allow Adidas
to compete with Nike worldwide. World Cup 1954, when West Germany miraculously won the soccer
1954 World Cup, their footwear was supplied by Adidas. These shoes introduced a technological
breakthrough: studs with screws. When the weather was good and the pitch was hard, the shoes were
equipped with short studs; when it rained; longer studs were screwed on the bottom of the shoes. As
the final game against the highly-favored team from Hungary was played in heavy rain, this gave the
German players a firmer hold on the slippery pitch.
Adidas sponsors major teams in a number of sports, especially football, rugby and tennis. American
college sports teams are also sponsored.
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"Adidas" is simply a combination of the founder's nickname (Adi) and the first three letters of his last
name (Dassler). This dispels the rumor that the letters are an acronym for "all day I dream about
sports," "all day I dream about soccer," or more crudely "all day I dream about sex."
In 1998, Adidas sued the NCAA over their rules limiting the size and number of
commercial logos on team uniforms and apparel. Adidas withdrew the suit, and
the two groups established guidelines as to what three-stripe designs would be
considered uses of the Adidas AG.
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Type Aktiengesellschaft
14
Total equity €5.66 billion
Number of 56,888
employees
Subsidiaries • Reebok
• Runtastic
• Matix
Website www.adidas-group.com
COMPETITORS
Rudolf Dassler, Adie’s brother, founded a rival company PUMA, the chief competitors of Adidas are
Puma and Nike. In August 2005, the company announced that it had made a deal to acquire rival
Reebok for $3.8 billion. The acquisition would increase its market share in North America and allow it
to further compete with Nike. This will propel Adidas to the number two spot in the foot apparel
market behind Nike. Adidas' trademark saying is 'impossible is nothing'.
ENHANCEMENT
In the 1980s, Adidas sneakers became popular amongst teenagers and young men. The Adidas sneaker
was popularized by the Run DMC song "My Adidas" and became a huge fashion trend.
The Tapie affair, the history of the company as presented by its official web site is incomplete, perhaps
because it is indirectly linked to financial scandals. After a period of serious trouble following the
death of Adolf Dassler's son Horst Dassler in 1987, the company was bought in 1990 by Bernard
Tapie, for 1.6 billion French francs ($320 million), which Tapie had borrowed. Tapie was at the time a
famous specialist of rescuing bankrupt companies, a business on which he built his fortune.Tapie
decided to move the brand’s production offshore to Asia. He also hired Madonna for promotion.
In 1992, Tapie was unable to pay the interest from his loan. He mandated the Credit Lyonnais bank to
sell Adidas, and the bank subsequently converted the outstanding debt owed into equity of the
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enterprise, which was unusual for then-current French banking practice. Apparently, the state-owned
bank had tried to get Tapie out of dire financial straits as a personal favor to Tapie, reportedly
because Tapie was a minister of Urban Affairs (ministre de la Ville) in the French government at the
time.
In February 1993, Credit Lyonnais sold Adidas to Robert Louis-Dreyfus, for a much higher amount of
money than what Tapie owed, 4.485 billion francs rather than 2.85 billion.
Robert Louis-Dreyfus became the new CEO of the company. He is also the president of the Olympique
de Marseille football team. In January 2015, Adidas launched the footwear industry's first reservation
mobile app. The Adidas Confirmed app allows consumers to get access to and reserve the brand's
limited edition sneakers by using geo targeting technology
In August 2015, Adidas acquired fitness technology firm Runtastic for approximately $240 million.
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ADVERTISING AND CELEBRITY ENDORSEMENTS
(Adidas)
India has been a very speculative market for Adidas. Despite this Dave Thomas, managing director of
Adidas in India is ambitious of the country's potential. The company hopes to double its revenue from
Rs. 805 crores by 2020. In 2015, the company had signed Ranveer Singh a prominent Bollywood
actor as a brand ambassador to the company's products. Ranveer then was a budding actor. The
company later decided to use the people's almost religious adoration for the game cricket to promote
their brand. It soon launched a new cricket campaign in the country. The campaign was called
FeelLoveUseHate with prominent Indian cricketer Virat Kohli. However, in 2017, Virat Kohli was
removed as the brand ambassador of the company. The cricketer later signed a major deal with Puma
India. The company also sells its products online through e-commerce websites such as Myntra,
Snapdeal, Jabong and Amazon. Adidas also has a website dedicated to the Indian audience that
markets and sells products to its consumers in India.
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INTRODUCTION
Nike, Inc. is an American multinational corporation that is engaged in the design, development,
manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and
services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It
is the world's largest supplier of athletic shoes and apparel 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).
Nike is the world's #1 manufacturer and marketer of athletic footwear and apparel. The company
established itself as one of the world's most familiar brands during the 1980s and 1990s, the Nike
"swoosh" logo came to symbolize not just sports culture, but street culture, as the appeal of the star
players who endorsed the brand was carried onto city streets. The approach of the new century set Nike
new problems. Trainers went (briefly) out of fashion, economic slowdown and labour problems hit
Asian performance. But the group has bounced back, retaining its iron grip on the sporting apparel
sector and still undisputed leader in sports-oriented street wear.
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A HAWK EYE VIEW
Type Public
DJIA component
Industry Apparel
Accessories
Sports equipment
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Founder Bill Bowerman
Phil Knight
(Chairman Emeritus)
Mark Parker
Andrew Campion
(CFO)
Sports equipment
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Number of 74,400
employees
HISTORY
Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track
athlete Phil Knight and his coach, Bill Bowerman, on January 25, 1964. The company initially
operated in Eugene as a distributor for Japanese shoe maker Onitsuka Tiger, making most sales at track
meets out of Knight's automobile.
In 1964, in its first year in business, BRS sold 1,300 pairs of Japanese running shoes grossing $8,000.
By 1965 the fledgling company had acquired a full-time employee, and sales had reached $20,000. In
1966, BRS opened its first retail store, located at 3107 Pico Boulevard in Santa Monica,
California next to a beauty salon, so its employees no longer needed to sell inventory from the back of
their cars. In 1967, due to rapidly increasing sales, BRS expanded retail and distribution operations on
the East Coast, in Wellesley, Massachusetts.
Throughout the 1980s, Nike expanded its product line to encompass many sports and regions
throughout the world. In 1990, Nike moved into its eight-building World Headquarters campus in
Beaverton, Oregon. The first Nike retail store, dubbed Niketown, opened in downtown Portland in
November of that year
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The SWOOSH logo is a graphic design created by Caroline Davidson in 1971, which was bought by
Phil Knight for $35. It represents the wing of the Greek Goddess NIKE. In spring of 1972, the first
shoe with the NIKE SWOOSH was introduced.
The Nike athletic machine began as a small distributing outfit located in the trunk of Phil Knight's car.
From these rather inauspicious beginnings, Knight's brainchild grew to become the shoe and athletic
company that would come to define many aspects of popular culture and myriad varieties of 'cool.'
Nike emanated from two sources: Bill Bower man’s quest for lighter, more durable racing shoes for his
Oregon runners, and Knight's search for a way to make a living without having to give up his love of
athletics. Bower man coached track at the University of Oregon where Phil Knight ran in 1959. Bower
man’s desire for better quality running shoes clearly influenced Knight in his search for a marketing
strategy. Between them, the seed of the most influential sporting company grew.
The story goes like this: while getting his MBA at Stanford in the early '60s, Knight took a class with
Frank Shallenberger. The semester-long project was to devise a small business, including a marketing
plan. Synthesizing Bower man’s attention to quality running shoes and the burgeoning opinion that
high-quality/low cost products could be produced in Japan and shipped to the U.S. for distribution,
Knight found his market niche. Shallenberger thought the idea interesting, but certainly no business
jackpot. Nothing more became of Knight's project.
By 1964, Knight had sold $8,000 worth of Tigers and placed an order for more. Coach Bower man and
Knight worked together, but ended up hiring a full-time salesman, Jeff Johnson. After cresting $1
million in sales and riding the wave of the success, Knight ET. Al. devised the Nike name and
trademark Swoosh in 1971.
By the late '70s, Blue Ribbon Sports officially became Nike and went from $10 million to $270 million
in sales. Katz (1994) describes the success via Nike's placement within the matrix of the fitness
revolution: 'the idea of exercise and game-playing ceased to be something the average American did
for fun,' instead Americans turned to working out as a cultural signifier of status. Clearly, the
circumstances surrounding the shift are not this simple; it is one of the aims of this project to discover
other generators of popular attention to health.
If Nike didn't start the fitness revolution, Knight says, "We were at least right there. And we sure rode
it for one hell of a ride" (Katz, 66). The 80s and 90s would yield greater and greater profits as Nike
began to assume the appearance of athletic juggernaut, rather than the underdog of old. "Advertising
Age" named Nike the 1996 Marketer of the Year, citing the "ubiquitous swoosh...was more recognized
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and coveted by consumers than any other sports brand--arguably any brand" (Jensen, 12/96). That
same year Nike's revenues were a staggering $6.74 billion. Expecting $8 billion sales in fiscal 1997,
Nike has targeted $12 billion in sales by the year 2000. And all from the back of a car.
Few can question Nike's financial hegemony. But nearly $7 billion in revenues clearly begs the
question, what sells these shoes? It is my assertion that Nike's power to sell comes from deep-rooted
yearnings for cultural inclusiveness and individual athletic accomplishment. These seemingly
paradoxical desires collide in consumer’s hearts and minds and produce the unyielding zeal for Nike
shoes and apparel. Unfortunate effects of this zeal can be found in the rash of Nike apparel killings in
1991 and the profusion of Nike appeals to these disparate elements of Americans' personalities through
an advertising philosophy that is, at once, simple and sublime. In addition, Nike's practices of top-level
athletes promoting their products appeal to countless ages and creeds as a way to identify with and
emulate their athletic heroes. These forces work powerfully upon the individual consumer, but one
should not lose sight of the cultural context in which the individual moves.
BRANDS:
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ADVERTISING AND CELEBRITY ENDORSEMENTS (Nike)
Nike spends $2 billion a year on marketing, spending lavishly on endorsements from superstar athletes
like Tiger Woods. Interestingly, Nike spends minimally on TV ads--just $60 million in the first nine
months of 2017 in the U.S. Nike prefers to spend money on events, like the cheap three-minute viral
video featuring Brazilian soccer star Ronaldinho which got 35 million hits online; or the pre-U.S. Open
fashion show Maria Sharapova put on for reporters, "unveiling" her wardrobe for the tournament. Nike
boasts endorsement deals with the top players in virtually every major sport.
Roger Federer first signed with Nike footwear and apparel in 1994. For the 2006 championships at
Wimbledon, Nike designed a jacket emblazoned with a crest of three tennis racquets, symbolising the
three Wimbledon Championships he had previously won, and which was updated the next year with
four racquets after he won the Championship in 2006. At Wimbledon 2008, and again in 2009, Nike
continued this trend by making him a personalised cardigan that also had his own logo, an R and an F
joined together. The world's top-ranked tennis player made headlines in both the sports and fashion
sections for the daytime and evening ensembles in which Nike outfitted him during last year's U.S.
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Open. His all-black nighttime outfit even sported a tuxedo stripe down his shorts. "Federer dressed to
thrill," screamed one British headline following his 2006 Wimbledon arena arrival, in which he donned
a cream colored Gatsby-esque blazer--designed, of course, by Nike.
Nike has a long history of using its ads to make a social statement. The "Just Do It" campaign, created
by the Wieden+Kennedy agency, launched in 1988. The first commercial in the campaign featured 80-
year-old Bay Area icon Walter Stack, who ran approximately 62,000 miles in his lifetime.
Nike's 2017 "Equality" campaign featured black athletes like LeBron James, Serena Williams, Gabby
Douglas, and Kevin Durant, along with actor Michael B. Jordan talking of the parallels between
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Data analysis and interpretation
Preference Yes No
No. Of 100 20
respondents
No
17%
Yes
No
Yes
83%
COMMENT: Most of the respondents i.e. 83% of the total respondents agreed that they preferred
wearing sport shoes for their daily life activities, whereas as some of the respondents i.e. 17% of the
total respondents said they do not prefer sport shoes much.
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“What factor do you consider the most for selecting a particular shoe?”
No. Of 32 10 23 35
Respondents
Design
10% Price
23%
Price
Comfort
Durability
Durability
32%
Design
Comfort
35%
COMMENT: Maximum number of respondents believed that Comfort is the most important factor
for selection of a particular shoe as 35% of them agreed with the same.
Durability and Price of the shoes was considered the key factor by 32% and 23% of the respondents
respectively.
Whereas the design of the shoes mattered the least to the respondents with only 10% considering it as
the deciding factor.
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“Do you consider the weight of the shoe as a deciding factor?”
Preference Yes No
No. Of Respondents 68 32
No
32%
Yes
No
Yes
68%
COMMENT: Majority of the respondents i.e. about 68% of the respondents consider the weight of
the shoe as a key factor for deciding in favor of or against a particular sport shoe.
Whereas 32% of the respondents did not consider the same as much of a deciding factor.
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“Which brand do you prefer?”
No. Of 43 38 19
Respondents
Others
19%
Adidas
43%
Adidas
Nike
Others
Nike
38%
COMMENT: Adidas is preferred by around 43% of the respondents which shows that it is the
most popular brand among the teenagers. Nike on the other hand is the preferred brand of 38% of the
respondents. Only 19% of the respondents preferred other brands such as Skechers.
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“Are you satisfied with the quality of the preferred brand?”
Preference Yes No
No. Of Respondents 89 11
No
11%
Yes
No
Yes
89%
COMMENT: 89% of the respondents agreed on being satisfied with the quality of their preferred
brands. On the other hand 11% of the respondents were not satisfied with the quality of their respective
brands due their personal bad experiences.
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“Are you satisfied with the price range of the preferred brand?”
Preference Yes No
No. Of Respondents 66 34
No
34%
Yes
No
Yes
66%
COMMENT: Most of the respondents i.e. 66% of the total respondents are satisfied with the price
range of their respective preferred brands, whereas the other 34% of the total respondents considered
the prices of the sport shoes quite high even though they still bought from the same brand due to their
high quality and comfort factors.
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“What kind of promotional tool do you prefer?”
No. Of 46 11 33 10
Respondents
50 46
45
40
33
35
30
25
20
15 11 10
10
5
0
Discount Lucky Buy One get Cashback
Offer Coupon One
COMMENT: ‘Discount’ offers and ‘Buy One get One’ offers are preferred the most by the
respondents as both of them were considered the best by 46% and 33% of the total respondents
respectively. Whereas Lucky Coupons and Cashbacks as promotional tools do not appeal much to the
respondents, so they only got 11% and 10% of the total responses in their favour.
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“Do advertising and celebrity endorsements influence your purchase
decision?”
Preference Yes No
No. Of Respondents 63 37
No
37%
Yes
No
Yes
63%
COMMENT: Advertising and celebrity endorsements seem to have great impact on the purchase
preference of the respondents as 63% respondents said that they were influenced by the advertisements
and celebrity endorsement campaigns. Whereas advertisement and celebrity endorsements does not
have much influence over the preferences of the other 37% of the respondents.
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“Do you normally switch over brands?”
Preference Yes No
No. Of Respondents 60 40
No
40%
Yes
No
Yes
60%
COMMENT: Majority of the respondents which is 60% of the respondents said that they shifted to
other brands normally. On the other hand, good 40% of the respondents did not believe in switching
brands normally.
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“If yes, What may be the reason?”
No. Of 22 31 15 30 2
Respondents
35
31
30
30
25
22
20
15
15
10
5
2
0
More Variety Better Attractive Better Quality Others
Deals/Offers Design Product
COMMENT: Better deals/offers and Better Quality product offered by other brands were found out
to be the major causes of shifting over of the brand by the respondents as 31% and 30% of the
respondents gave the following reasons respectively. Whereas 22% and 15% of the respondents
claimed that they shifted brands due to More Variety and more Attractive Designs offered by other
brands.
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Conclusion of the Study
Research findings
AS FOLLOWS:
• Adidas is the market leader as it holds the maximum market share of 43%.
• N ike is chasing its position most aggressively and stands second in the market of sport shoes
with the market share of 38%.
• Only 19% market share is held by all the other brands of sport shoes available in India such as
Skechers, Action, Reebok etc.
• Consumer reactions suggest that Comfort, Durability and Weight of the shoes are the key
factors that are considered during the purchase of sport shoes by most of the people. This shows
that people have become more aware and conscious about the quality of shoes.
• People also consider Price a key factor as the survey shows that people have the propensity to
shift to another brand if they are offered better deal or better quality of shoes at the same price.
• In many cases, even though the consumer is not satisfied with the price of the shoes, they buy
them anyway as they do not want to compromise on the quality.
• Offers such as ‘Discounts’ and ‘Buy One get One free’ are the most affective promotional
tools.
• Advertising and Celebrity endorsements by world class sportsmen and athletes such as Virat
Kohli play a major role in influencing purchase decision of the consumers.
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ANNEXURE
QUESTIONNAIRE
1. Gender *
Male
Female
2. Age *
18-20
20-22
22-25
3. Do you prefer
wearing Sport shoes?
Yes
No
37
5. Do you consider the weight of the
shoe as a deciding factor? *
Yes
No
6. Which
brand do you
prefer?*.
Adidas
Nike
Other
38
9. What kind of
promotional tool do you
prefer?*
Discount offer
Lucky Coupon
Buy One get One
Cashback offer
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BIBLIOGRAPHY
The lists of reference for the purpose of completing this marketing project are as given
below:
INTERNET:
www.forbes.com/2008/01/24/nike-endorsement-athletes-biz-
cz_0124nikeathletes_slide.html#97d693424d75
https://www.businessinsider.in/Nikes-Colin-Kaepernick-ad-isnt-the-first-time-the-
brands-commercials-have-made-a-social-statement-See-some-of-the-most-memorable-
campaigns-in-its-history-/Nikes-2017-Equality-campaign-featured-black-athletes-like-
LeBron-James-Serena-Williams-Gabby-Douglas-and-Kevin-Durant-along-with-actor-
Michael-B-Jordan-talking-of-the-parallels-between-equality-in-sports-and-equality-in-
the-broader-world-/slideshow/65726665.cms
https://en.wikipedia.org/wiki/Nike,_Inc.
https://en.wikipedia.org/wiki/Adidas
https://www.forbes.com/search/?q=adidas%20brand%20ambassador
https://www.referralcandy.com/blog/nike-marketing-strategy/
40