Pooja V. Arora

8/7/2019 Pooja V. Arora

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A

CASE STUDY TO UNDERSTAND BRANDING

SUBMITTED TO JAGRITI MISHRA

Submitted To:

National Institute of Fashion Technology

By:

Pooja V. Arora (GEMM)


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TO UNDERSTAND

THE

NIKE AS BRAND.


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TABLE OF CONTENT

Sr. No. Page No

Acknowledgement

Preface

Summary

1 Introduction (Branding)

1.1 What is branding ?

1.2 Understanding the Language of Branding

1.3 Understanding brands

1.4 Importance of Branding

1.5 Brand Loyalty

1.6 Brand Premium

1.7 Brand Equity

1.8 Brand Audit

1.9 What is Brand Building

1.10 Understanding the Consumer for brand building.

2 Nike

2.1 Company Profile

2.2 Business Segments

2.3 Brand Portfolio

2.4 Product Profile

2.5 Product Differentiation

2.6 A Consumer focused brand

2.7 Customer based prospects2.8 Branding Strategy

2.9 The Brand Identity

2.10 Brand Management Objectives

2.11 Marketing Strategy


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2.12 4Ps of Nike

3 SWOT Analysis

4 Data Analysis

5 Conclusion

6 Annexure

7 Bibliography


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ACKNOWLEDGEMENT

I would like to extend my heartfelt gratitude to all those who have contributed

towards the successful completion of my minor project. Foremost among them is

Ms. Jagriti Mishra for her helpful and generously extended support and by

sparing her valuable time to guide and suggest us towards completion of this

project.

I do owe a deep sense of gratitude to all the members and customers of Nike

(Ahmedabad) and all those who stood with me and for their continuous support

and co-operation during the project. They too have contributed in no mean

amount towards the success of my endeavors. I also thanks all the faculty of my

Fashion Management Department for giving me the knowledge for doing the

project.


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PREFACE


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SUMMARI


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BRANDING

Introduction :

Branding is more than just a business buzzword. It has become the crux of

selling in the new economy. If the old marketing mantra was Nothing happens

until somebody sells something. The new philosophy could be nothing happens

Nothing happens until somebody brands something.

It is the name attached to a product or service. However, upon close inspection,

a brand represents many more intangible aspects of a product or service a

collection of feelings and perceptions about quality, image, lifestyle & status. It

creates in the mind of customers & prospects the perception that there is no

product or service on the market that is quite like yours. In short, a brand of fers

the customer a guarantee & that delivers on it.

The brand is increasingly becoming the key source of differentiation that guides

customer purchase choice. It is the focal point around which an organization

defines how it will uniquely deliver the value to the customer for a profit-

effectively embodying the Heart and Soul of the organization. The brandspromise is delivered through its products, services, and consumer

communication-the total relationship and experience. If the brand is well

conceived and consistently delivered through all business processes and

customer contracts, the organization will grow prosper.

Not too long ago, marketers at consumer product companies seemed to be the

only ones interested in talking about Brand Management and Branding. But

these days, all kinds of organizations are recognizing the importance of branding.

Branding also becomes a critical issue for business that spun off from parent

company and as more and more companies merge or acquire one another. The

brand identity of the new combines enterprise becomes a critical decision.


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Organization have discovered the Brand are perhaps their most important assets

for a number of reasons.

WHAT IS BRANDING ?

A brand is a product, service, or concept that is publicly distinguished from other

products, services, or concepts so that it can be easily communicated and

usually marketed. A brand name is the name of the distinctive product, service,

or concept. Branding is the process of creating and disseminating the brand

name. Branding can be applied to the entire corporate identity as well as to

individual product and service names. Brands are often expressed in the from of

logos, graphic representations of the brand.

A brand is a product that adds other dimensions, and differentiates it in some

way from other products designed to satisfy the same need. Regardless of the

context, a brand has to be unique and has to provide differentiation at any given

point in time in a competitive context. The time aspect has to be vital so ensure

that the brand is always on top of consumers mind. The time orientation also

emphasizes the need for brands which lost their offerings. Ambassador, Fiat

Liberty and some of the brands which lost their pioneering market dominance in

a changing marketing environment. A brand should functionally and emotionallyreassure a consumer on what it stands for-for example L & T housing brand may

reassure about the quality of housing, as well as provide them with emotional

security of trust. A brand could stand for fashion and status (Omega or Rolex). A

brand could also stand for personal grooming style which reinforces the look of

an executive (Park Avenue) a brand could also be associated with, fun

adventure, freedom and a feeling of community belongingness (Harley

Davidson).

Brands are decisive instruments in todays marketing scenario. Enhancing brand

image and awareness is a continuous process which enables the marketers to

withstand fierce competition. Usually brands reflect the goodwill that an

organization enjoys in the market and the image that it projects.


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A brand stands for

- Attributes

- Benefits

- Values

- Culture

- Personality

-The target user

Attributes :

Brands focus on the product attributes to inform the existing customers as well as

to influence the potential customers.

Benefits :

The attributes of a product should be converted into emotional and functional

benefits for the consumers.

Values :

Brands communicate human values that eventually reflect the tangible values of

the product.

Culture :

Brand culture is nothing but cultural dimensions of brands that influence their

identity in the market.

Personality :

Sometimes, brands also convey a personality trait.

Target user :

Brands define the user segment-upper class, middle class, lower middle class

etc.


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UNDERSTANDING THE LANGUAGE OF BRANDING

It is important to establish a common brand management vocabulary in an

organization. Establishing this common vocabulary will ensure that people can

communicate with fewer misunderstanding. There are different terms used to

describe positioning the brand. Terms ranged from essence and promise to

position and value proposition.

Brand : The American Marketing Association describes a brand as name, term,

symbol or design, or a combination of them intended to identify the goods and

service of one seller or group of sellers and to differentiate them from those of

competition

Brand Esssence : This is the heart and soul of a brand-a brands fundamental

nature and quality. Usually stated in two three words, a brands essence is the

one constant across product categories and throughout the world.

Brand Promise : A brand promise is often stated as: Only (brand name) delivers

(benefit) in (product or service category) .Sometimes, with corporate brands, as

(Brand name) is the (trusted / quality/ innovative) leader in (benefit) in the

(product or service category).

Brand Positioning : This is the way the brand is perceived within a given

competitive set in the consumers mind.

Brand Personality : This refers to adjectives that describe the brand (such as

fun, kind, sexy, safe, sincere, sophisticated, cheerful, old fashioned, reliable,

progressive). How consumers perceive a brands personality is often discovered

through qualitative research, by asking people to describe the brand as if it were

a person or a animal.

Brand Association : This refers to anything a consumer associates with the

brand in his/her mind.


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Brand Image: This is the totality of perceptions resulting from all experience with

and knowledge of the brand. Brand image is how consumers perceive the brand.

Brand Identity : This refers to a combination of visual, auditory, and other

sensory components that create recognition, represent the brand promise,

provide differentiation, create communications synergy, and are proprietary.

Brand Architecture (or Brand Structure): It is how an organization organizes

the various named entities within its portfolio. In fact, brand / sub-brands is the

type of architecture most often used.

Parent Brand : This is the brand that is extended into more than one category. It

may or may not be the same as the corporate brand.

Sub-Brand : This is a new brand that is combined with a parent or corporate

brand in the brand identity system.

Endorsed Brand : This is the primary name the consumer is intended to use to

refer to a product. It is a brand that is endorsed by the parent or corporate brand

in the brand identity system.

Brand Extension: This refers to the introduction of an existing brand into a new

product category market segment.

UNDERSTANDING BRANDS

How do we attempt to understand brands ? Marketing literature is full of various

terminologies, including Brand Architecture, Brand DNA, Brand Print, Brand

Mapping, Brand Personality, Brand Onion, Brand Icon, Brand Essence, Brand

Worth, etc.

All these models attempt to define how one brand differs from another, in the

consumers mind. They give a template to map competing brands to understand

the strengths and weaknesses of one brand versus the other. They also give the


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marketers an idea of where and how to move the brand, in terms of product

offerings, advertising, services, images etc.

Prof. David Aaker defines the brand to have three levels, the Brand Essence, the

Core and the Extended. Looking further, he has defined the Brand as a Product,

Brand as an Organisation, Brand as a Person and Brand as Symbol.

While studying brands the following may be a good set of questions to ask:

What are the product benefits ? Functional ? Emotional ?

Who are the target consumers ? What are their perceptions ?

What are the core values of the brand ?

What is the Brand Positioning ?

What is the advertising strategy ? Creative approach ?

Adverting Positioning Statement ?

Studying both the consumers and the competition, the internal company records

will helps us develop metrics for Brand Loyalty, Brand Awareness, Brand

Associations and Perceived Brand Values.

Importance of Branding

It has been said that the single most important role of business is to attract and

retain a customer. If this is done successfully, it leads to profits and sharing of

wealth with all the stakeholders, be they employees, suppliers, distributors or

shareholders. The single most important tool used to build customer base and

customer loyalty is through focused brand-building activities. A strong brand is

the ultimate customer glue.

A product attracts a particular price. A brand attracts a premium. The premium

leads to profits. A brand ensures the consumer loyalty that a simple product

cannot command. And brand- loyal customers ensure that the company


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continues to get its share of the consumers wallet month after month, year after

year. Any soap vs Lux. Any engine oil vs Castrol. Any TV vs Sony. The brand

almost telegraphically tells the consumer that it is not just a product he or she is

buying. It is a lot more. The brand stands for an assurance of quality, value,

service and price besides offering intangible benefits like glamour, energy, style,

and so on.

Brand Loyalty

A brand provided a guarantee of reliability and quality. Its owner had a powerful

incentive to ensure that each pie was as good as the previous one, because that

would persuade people to come back for more while tracing the origins of

brands.

One of the biggest functions of brands, with respect to the marketer is to ensure

that the consumers come back and ask for it by name. Marketing practices have

proven that it costs six times more to attract a new customer as against retaining

a current customer. So, given the same marketing efforts, a marketer is better-off

retaining as many customers as he can, before trying to attract more new

customers. The single biggest glue is the brand.

Form the consumers standpoint the brand stand s for a familiar friend, a symbol

that is trusted. In many ways, a brand plays a role in simplifying the consumers

purchase process, saving his time and effort. A brand is therefore a welcome

sign for the consumers as well. New theories even sys that brands ultimately

belong to the customers and not to the marketers.

The truth is that people like brands. They not only simplify choices and guarantee

quality, but and fun and interest.


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Brand Premium

A brand has the power to command a premium price among customers an a

premium stock price among investors. It can boost earnings and cushic cyclical

downturns and now, a brands value can be measured.

As societies move from commodities to brands, consumers learn that they get

more with the symbol of the brand.

The willingness of consumers to pay more for brands implies that the marketer

can test the waters with options that offer differing level of quality, service, etc. at

different price points. The effort can be to bring in consumers with a value

offering and then upgrade them to the better, more premium brands.

Brand Equity

Encompasses a set of assets linked to a brands name and symbol that adds to

the value provided by a product or service to a companys customers. There is

always the underlying expectation that the brand will deliver the satisfaction it has

promised. A consumer expects a certain standard of quality and the

manufacturer has to make sure that the product lives up to that expectation,

otherwise the consumer will stop buying the brand. Simply speaking, brandidentities primarily exist in the minds of its consumers. A brand is his or her

evaluation of the performance of that brand. And if this evaluation is positive the

customer is willing to pay more for one particular brand over another similar

product. This is the strength of Brand Equity.

Once again, why is Brand Equity important? It is important because a strong

Brand Equity enables the brand to command a premium. The reason customers

are prepared to pay a premium is because of the perceived reliability,

trustworthiness, as well as the positive image of superior quality that the brand

commands.


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As emphasized, the major assets of Brand Equity can be categorized as :

1) Brand Awareness : This refers to the strength of a brands presence in

the consumers mind. Awareness I measured according to the

recognition and recall of the brand.

2) Perceived Quality: Perceived quality lies at the heart of what customers

are buying; and in that sense, It is the ultimate measure of the impact of

brand.

3) Brand Loyalty : A brands value to the company in largely created by

the customer loyalty it commands. Since a company considers loyalty

as a major asset, it encourages and justifies a loyalty building

programme which, in turn, helps create and enhance Brand Equity. In a

way the loyal customer gets emotionally attached to the brand.

Brand Audit

Auditing is more of an accounting term. It is associated with review, check,

inspection, appraisal and assessment. Over time every profession adopts this

term to check efficiency or otherwise of their systems, professionals. It is

common today to hear personnel audit, store audit etc. As brand begins to grow,

it will be needful to conduct brand audit. Brand audits helps to know the present

brand value. Brand value is the financial brand status in terms of the net present

value of financial benefit derived from the brand. Brand audit helps to know when

to invest in building the brand and when to assess the impact of the brand

investment. Brand audits also help to check brand awareness, brand knowledge

as well as visibility and perception. In addition to the above brand audit will aid

proper understanding of brand equity.

I like another online view that states that 'A brand assessment provides a

breakdown of an organization's brand and its brand management and marketing

effectiveness. It assesses a brand's strengths, weaknesses, opportunities, and

threats. It identifies brand development opportunities including those achieved by


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brand repositioning and brand extension. The audit should result in

recommendations to improve brand equity, brand positioning, and brand

management and marketing effectiveness.

What is Brand Building ?

Brands are built block by block and the best analogy one can give is howa building is constructed.

The building of a brand is three-part process. The first part relates to the idea.

Like and Architect, the Marketing, Manager must not only be able to visualize

whether there is a consumer need for particular product but also in what form.

It is only when he has been able to pinpoint his particular need, that he can

proceed further in terms of satisfying that need.

This lead to the second part. Like construction of a building, he must have

certain ingredients to build up the brand which will satisfy that need. For

example, what should be the physical properties of the product? How is the

brand going to be positioned? How will it look? What should its price be and

so on. These are the inputs through which the brand is built.

The third part relates to the process. In other words, all the ingredients we

saw in the second part how are we going to use these ingredients to make

the brand? This process includes research, the logic behind the introduction

of the brand, creativity in terms of how to project the brand to the consumer

and of course, make sure there is adequate quality control to ensure that the

product delivers what it promises.

UNDERSTANDING CONSUMERS FOR BRAND BUILDING

Consumers decide the fate of brands and of enterprises. Whether the brand is an

FMCG (fast moving consumer goods) like a toothpaste, a consumer durable like

a hotel, it is the consumer who calls the shots, In the case of organizational

selling efforts like heavy equipment or office automation products, it is the buying


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organization, in a collective form, that performs the role of the buyer/ consumer,

albeit in a more rational and often a complicated way.

Understanding consumers has to start and end with a series of questions:

Who are the consumers for the brand ?

Why should they buy it ?

When will they buy it ?

Where will they buy if from ?

How often will they buy it ?

How much will they pay for it ?

Whom will they consult for advice ?

What are their beliefs about the product category ?

What are the other products that serve the same purpose ?

What is the share of this product category in solving the problem ?

What are their attitudes towards the brand ?

Why are some consumers never using the brand ?

Why are some consumers using the brand regularly ?

Finding answers to some, if not all, of these questions is the first step towards

successful brand-building.


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NIKE

Nike,Inc was develops with the goal to carry on the legacy of innovative thinking,

to develop products that help athletes of every level of ability reach their

potential, or to create business opportunities that set Nike apart from the

competition and provide value for their shareholders.

It started with a handshake between two visionary Oregonians - Bowerman and

his University of Oregon runner Phil Knight. They and the people they hired

evolved and grew the company that became Nike from a US-based footwear

distributor to a global marketer of athletic footwear, apparel and equipment that is

unrivaled in the world.

Along the way, Nike has established a strong Brand Portfolio with several wholly-

owned subsidiaries including Cole Haan, Converse Inc., Hurley International

LLC, NIKE Golf, and Umbro Ltd.

Their world headquarters is located near Beaverton, Oregon, a suburb of

Portland. So while the Pacific Northwest is the birthplace to Nike, today they

operate in more than 170 countries around the globe. Through their suppliers,

shippers, retailers and other service providers, they directly or indirectly employ

nearly one million people.

That includes more than 33,000 Nike employees across six continents, each of

whom make their own contribution to fulfill the mission statement: to bring

inspiration and innovation to every athlete in the world.


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COMPANY PROFILE

Nike, Inc. engages in the design, development, and marketing of footwear,

apparel, equipment, and accessory products worldwide. The company produces

athletic footwear products for specific athletic use and for casual or leisure

purposes. It designs products for running, basketball, childrens cross training,

outdoor activities, tennis, golf, soccer, baseball, football, bicycling, volleyball,

wrestling, cheerleading, aquatic activities, hiking, and other athletic and

recreational uses. Nike also sells sports apparel, as well as athletic bags and

accessory items. The company sells equipments under the NIKE brand name,

including sport balls, eyewear, skates, bats, gloves, and other equipment

designed for sports activities. The company, through its subsidiaries, produces

and sells swimwear, womens sports bras, cycling apparel, maternity exercise

wear, childrens clothing, school supplies, timepieces, and electronic media

devices under the NIKE brand. It also sells various plastic products, and plastic

injected and metal products to other manufacturers. The company sells dress

and casual footwear, apparel, and accessories for men and women under the

brand names Cole Haan, g Series, and Bragano. It also manufactures and

distributes ice skates, skate blades, in line roller skates, protective gear, hockey

sticks, hockey jerseys, licensed apparel, and accessories under the Bauer andNIKE brand names. The company sells its products through a mix of independent

distributors, licensees, and subsidiaries in approximately 170 countries

worldwide. Nike was incorporated in 1968 and is headquartered in Beaverton,

Orgeon. It has contracted with more than 700 shops around the world and has

offices located in 45 countries outside the United States. Most of the factories are

located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam,

Pakistan, Philippines, and Malaysia.


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Business Segments

Footwear (54% of Revenue)

Nike specializes in athletic footwear, particularly in running, cross-training,

basketball, and soccer, although Nike also sells sport-inspired casual footwear

like its Air Force Ones footwear line. Footwear sales increased 14% in 2009,reaching about $10.3 billion, and accounted for 54% of Nike's 2009 revenue.

Much of the growth in footwear revenue is attributed to the 15% increase in

footwear sales in the Asia Pacific region. Approximately 44% and 30% of the

company's 2009 footwear sales occurred in the United States and EMEA

regions, respectively.

Apparel (27% of Revenue)

Adidas sells sports apparel such as running shorts, t-shirts, and licensed apparel

(with logos of college and professional sports teams). Apparel sales totaled $5.24

billion in 2009, a 0.2% increase from a year earlier. 2008 sales from this segment

grew by 14% from 2007, a trend that Nike attributed much of this revenue growth

to a 25% increase in sales in emerging markets like Russia in the EMEA region

as well as a currency-neutral 50% increase in revenues from China. The EMEA

region accounts the majority of Nike's apparel sales, accounting for 38% the

company's revenue earned from apparel.

Equipment (6% of Revenue)

Adidas also sells sports equipment such as balls, protective equipment, and golf

clubs. Sales of Nike branded equipment reached $1.11 billion in 2009, a 9.5%

increase from 2008. This increase was driven primarily by an 10% increase in

equipment sales in the Asia region.

Other (13% of Revenue)

Nike also sells apparel and footwear under the Nike Golf, Cole Haan, Converse,

Hurley International, and Umbro brand names. Nike earned approximately 13%


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of its revenue, or $2.5 billion in 2009, from these segments.

y Nike Golf sells lines of footwear, apparel, and equipment for golfers. Nike

Golf's revenue decreased 11% during 2009, to $648.3 million.

y Cole Haan distributes dress and casual footwear for men and women.

Cole Haan's revenue decreased 5% during 2009 to $471.6 million,

attributed to reductions in consumer discretionary spending in their

respective markets.

y Converse sells athletic and casual footwear and apparel. Converse earned

$915.3 million in revenue in 2009, a 26% increase from a year earlier.

y Hurley International sells action sports apparel primarily for surfing,

skateboarding, and snowboarding. Hurley's revenue increased 19% during

2009, reaching $202.9 million.

y Umbro sells soccer footwear and apparel. Nike purchased Umbro during

2008 for $576 million in order to enhance the company's position in the

soccer footwear and apparel industry. Umbro's sales reached $174.0

million in 2009, a 223% increase from 2008. In August 2009, Nike sold

Umbro's ownership of the United Soccer Leagues, a Florida based

professional soccer league, to NuRock Soccer Holdings.

Brand Portfolio

NIKE, Inc.s wholly-owned affiliates, reported as Other Businesses Cole Haan,

Converse, Inc., Hurley International, LLC, NIKE Golf, and Umbro, Ltd. play a

significant role in it's future growth plans. At the end of fiscal 2009, NIKE, Inc.s

affiliate businesses contributed approximately $2.5 billion of the companys $19.2billion in revenue. As part of our growth strategy, we continue to invest in

opportunities that will generate the highest possible long-term returns.


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Cole Haan

Cole Haan, a wholly-owned subsidiary of NIKE, Inc., is one of Americas leading

luxury brands, offering high-quality mens and womens footwear, accessories

and outerwear. Each product blends craftsmanship, design and innovation to

give it distinctive character and style. Cole Haan operates more than 180 retaillocations throughout the United States, Canada, the Middle East and Asia. Cole

Haan is headquartered in New York City and Yarmouth, Maine.

Converse Inc.

Converse, Inc., established in 1908 and based in North Andover, Massachusetts,

has built a reputation as Americas Original Sports Company and has been

associated with a rich heritage of legendary shoes such as the Chuck Taylor, AllStar shoe, the Jack Purcell shoe and the One Star shoe. Today, Converse offers

a diverse portfolio including premium lifestyle men's and women's footwear and

apparel. Converse product is sold globally by retailers in over 160 countries and

through more than 50 company-owned retail locations.

Hurley International LLC

Headquartered in Costa Mesa, California, Hurley International LLC designs and

distributes a line of action sports apparel for surfing, skateboarding and youth

lifestyle apparel and footwear under the Hurley brand name.

NIKE Golf

Located at NIKEs World Headquarters in Beaverton, Oregon, Nike Golf designs

and markets golf equipment, apparel, balls, footwear, bags and accessories

worldwide. Nike Golf is passionately dedicated to ushering in the future of this

great sport by developing ground-breaking innovations that enable and inspire

athletes to become better.


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Umbro Ltd.

Founded in 1924 and headquartered in Manchester, England. Umbro, Ltd.

designs, distributes, and licenses athletic and casual footwear, apparel and

equipment, primarily for the sport of football (soccer), under the Umbro

trademarks. Umbro Ltd. has been associated with football since the 1930s andits relationship with leading national teams and professional clubs includes

exclusive endorsements and distribution rights for playing kit, apparel and

equipment, including playing and training kits for Englands National Team.

Product Profile

Nike produces a wide range of sports equipment. Their first products were track

running shoes. They currently also make shoes, jerseys, shorts etc. for a wide

range of sports including track & field, baseball, ice hockey, tennis, Association

football, lacrosse, basketball and cricket. Nike Air Max is a line of shoes first

released by Nike, Inc. in 1987. The most recent additions to their line are the

Nike 6.0, Nike NYX, and Nike SB shoes, designed for skateboarding. Nike has

recently introduced cricket shoes, called Air Zoom Yorker, designed to be 30%

lighter than their competitors'. In 2008, Nike introduced the Air Jordan XX3, a

high performance basketball shoe designed with the environment in mind.

Nike sells an assortment of products, including shoes and apparel for sports

activities like association football, basketball, running, combat sports, tennis,

American football, athletics, golf and cross training for men, women, and

children. Nike also sells shoes for outdoor activities such as tennis, golf,

skateboarding, association football, baseball, American football, cycling,

volleyball, wrestling, cheerleading, aquatic activities, auto racing and other

athletic and recreational uses. Nike is well known and popular in youth culture.

Nike recently teamed up with Apple Inc. to produce the Nike+ product which

monitors a runner's performance via a radio device in the shoe which links to the


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iPod nano.

Some of Nike's newest shoes contain Flywire and Lunarlite Foam. These are

materials used to reduce the weight of many types of shoes.

Apart from delivering a pair of comfortable sports shoes,Nike also provides a

number of value-added features with its products. The features that are a part of

every Nike sports shoes are as follows:

PerformanceHigh Sports Shoes:

Nike has patented the "Air" sustem and has made it into a regular feature in most

of its models. Many models feature an air pocket in the shoe that reduces the

weight of the shoe and reduces pressure on the heels. Besides the overall

design and compactness of the shoe have made it a favourite of many

professional athletes around the world.

Comfort:

Nike shoes are renowned all over the world for the comfort they provide. Well

padded and cushioned,they provide a tremendous level of comfort to the wearer

and reduce the strain to his feet while playing.

Lightweight:

This attributes is in line with the two described above. A lighweight shoe provides

greater mobility and eases the pressure on the feet of the wearer.

Durability:

People purchasing a pair of shoes at such a high price often feels that they have

made an invest ment. They would obviously want to see their shoes last a long

time.

Style:

Nike's design are considered to be the most stylish in the industry and beat allothers as far as looks are concerned. Attractively packaged,it is a delight to bring

a pair home. Add to this the "Swoosh"-the most recognizable symbol in sports

and you have a product that would give the user a definite sense of pride.


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Nike shoes also come with a guarantee card that enables the owner to return it in

case of manufacturing defects.However,owing to the fact that the company

implements strict quality control measures,coming across a defective pair in a

store are a rarity. Nike positions its products in such a way as to try to appeal to a

"youthful..materialistic crowd". It is positioned as a premium performance brand.

Product Differentiation

In terms of product differentiation, NIKE is also leading the market. The only

competitor nearly has an identical business is Adidas-Solomon. Product

differentiation is healthy in the footwear industry and allows the company to

increase its profits through the sale of different products. Another advantage of

manufacturing a number of product lines is the reduction of risk in that if one

product fails there are numerous other products to compensate for this loss.

Companies in the apparel and footwear industry that concentrate on

manufacturing a single product are at a great disadvantage since their revenues

depend exclusively on the sales of only one type of product, therefore, increasing

the potential default risk.

NIKE designs most of its footwear for athletic use; however, in order to diversifyits products, a large percentage of their products come from sales of footwear,

apparel, and accessories for casual and leisure purposes.

The company segments its products in variety of ways. First of all, it

manufactures sports goods and accessories for three different groups of people:

men, women and children. Each segment is carefully examined in terms of

physical capabilities, sociological needs, and design preference. Another type of

segmentation used by NIKE that helps to increase product diversification is

achieved by offering footwear, apparel, accessories, such as NIKE watches or

gym bags, as well as performance equipment, including sport balls, timepieces,

eyewear, skates, bats, gloves, and others in virtually every type of sport: running,

basketball, tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling,


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cheerleading, aquatic activities, hiking, fencing, and others.

Besides the two segmentations described above, NIKE also has agreements for

licensees to produce and sell NIKE brand items aside from athletic footwear and

apparel. In part, this product differentiation is accomplished through strategic

management planning by having the company sell NIKE brand timepieces,

childrens clothing, school supplies, electronic media devices, and other items.

NIKE subsidiaries, such as Bauer NIKE Hockey Inc., are yet another way the

company segments its product lines. Specifically, the Bauer NIKE Hockey Inc.

subsidiary manufactures and distributes ice skates, skate blades, in-line roller

skates, protective gear, hockey sticks and many other licensed apparel and

accessories that make NIKE stand out in its industry.

A Consumer-Focused Brand

A customer-focused brand identifies a key type of user, and then obsessively

delivers products that meet the user's needs.

In the case of Nike, the brand is centered around the Competitive Athlete. Nike

focuses all of their attention on the Athlete, but delivers much more than shoes;

they deliver all the surrounding products that the Athlete needs for experience.

For instance, in basketball Nike sells the shoes, the warm-ups, the shorts, the

jersey, the headband, the water bottle, the athletic bag, the towel, and the ball.

They started as a shoe company, and have ended up as The place to go for

Athletic experience. They have wrapped up multiple product lines, using multiple

factories, with multiple technologies.

Customer Base Perspectives

Customer logic is derived from evaluation of a company and its product based

upon customer needs, customer benefits, and product features. Each of these

areas is researched to determine what level of pressure logic exists. For branded

athletic shoes, Nike is facing customer needs on a global level. This is because

there is global demand for brand name athletic shoes and there is opportunity


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available for growth. However, customer benefits are on a regional level. Though

there is global demand for products in Nikes competitive industry, customers

view the product differently and therefore derived benefits based on age, maturity

and cultural standards or outlooks.

BRANDING STRATEGY

Customer Based Brand equity The CBBE model approach brand equity from the

perspective of the consumer. Whether it is an individual or an organization.

Understanding the needs and wants of consumer and devising products and

programs to satisfy them are at the heart of successful marketing.

Brand equity as a bridge

Brand equity provides marketers with a vital strategic bridge from their past to

their future.

Brand as a reflection of past

All of the dollars spent each year on manufacturing and marketing products

should not considered so much as expenses but as investmentinvestment

in what consumer learned, felt experienced, and so forth about the brand. If not

properly designed and implemented, these expenditure may not be good

investment, in that right knowledge structures may not have been created in

consumers minds, but they should be considered nonetheless. Thus the quality

of the investment in brand building is the most critical factor, not necessarily the

quantity of investment, beyond some minimal threshold amount .

Brand as the direction for future

The brand knowledge that has been created over time by these maketing

investments dictates appropriate future dictation for the brand.consumer will

decide ,based on their brand belief,attitudes,and so on,where they think brand

should go and grant permission(or not) to any marketing action or program. Thus

the ,at the end of the day ,the true value and future prospects of brand rest with

consumers and their knowledge about the brand.brand equity can offer focus and

guidance , providing marketers with means to interpret their past marketing


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performance and design their future marketing program.

Making a brand strong: Brand knowledge

Brand knowledge is conceptualized here as consisting of a brand node in

memory with a variety of associations linked to it . in particular ,brand knowledge

can be characterized in terms of two components; brand awareness and brand

image. Brand awareness is related to the strength of the brand or trace in

memory, as reflected by consumers, ability to identify the brand under different

condition. brand awareness is a necessary, but not always sufficient, step in

building brand equity.

Brand image has long been recognized as an important concept in marketing.

Consistent with an associative network memory model, brand image as reflected

by the brand associations held in consumer memory.

Sources of brand equity

Customer based brand equity occurs when the consumer has a high level of

awareness and familiarity with brand and holds some strong , favorable, and

unique brand association in memory.

Brand awareness

Brand awareness consist of brand recognition and brand recall performance.

brand recognition relates to consumer, ability to confirm prior exposure to the

brand when given the brand as cue. Brand recall relates to consumer ability to

retrieve the brand from memory when given the product category, the needs

fulfilled by the category, or purchase or a usage situation as a cue.


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Brand Identity: Nike

Introduction

The Nike brand is considered a highly effective brand across many disciplines

The Logo- Swoosh

Another name for a logo is a trademark or signature . For Nike, the swoosh has

become just that- a signature. With or without the word Nike underneath it, the

general population can see the swoosh and visualize Nike. The logo has played

to the marketing and business, success of the brand.

Nike's swoosh is currently the most recognizable brand. Nike's swoosh is a

commercial symbol that has come to stand for athletic excellence,a spirit of

determination and a playful self awareness.

The rhetorical representation of the logo must communicate within one single

image everything the organization wants the public to know about them. The logo

is the heart of an organizations identity. It is shown on all products and publicity

materials and has become synonymous with the organizations actual name.

The swoosh simultaneously represents athleticism, competition and victory. With

one solid brush stroke, viewers of the swoosh know that this is what it means.

The swoosh also resembles a check mark which, in American culture, has

become representative of success and a job well-done. Nike prides itself in

creating state of the art athletic equipment from running shoes to soccer balls

and using a logo that rhetorically represents success and visually ties into the

ancient gods of sport explains its success as a successful, simple and

recognizable trademark.

Slogan: "Just Do It"

Just Do It is the tag-line associated with the Nike logo. This tag-line is habitually

positioned alongside Nikes logo, whether it is in a print or television

advertisement. Together, the logo and tag-line feature the significance of Nikes

brand goals and ideals-athleticism and victory. The logo design symbol, along


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with the tag line, has evolved into a motto and the way of life for a whole

generation. According to John Heskett, Objects and environments can be used

by people to construct a sense of who they are, to express their sense of identity.

The Nike logo and tag-line serve to identify ordinary human beings as icons for

action and excellence.

The swoosh logo, as well as tag-line, portray a particular image and slogan that

stands for a particular content, without reflecting its features visually.

The logo is fundamentally a swoosh. It looks like a check mark. It's plain, simple

and yet, unmistakable. It's meaning is more intense, deeper and influential as

described in the above section.

The "Just Do It" tag line is similar in this manner. When we read words, the

words are describing a content, yet do not reflect it visually. Words are most

definitely serving as signs, and provide identification and distinction. Although the

tag line is too, fundamentally simple, it is distinct in its meaning. "Just Do It"

means dont think, dont ask, dont talk about it, don't regret it, just do it. The

visual displays alongside this motto coincide with this notion. Sports figures and

general athletes are depicted as having supreme athletic prowess, at the top of

their game. "It appeals to the desire to be free, independent, overcoming all

obstacles and social and physical inhibitions and limitations and one can see

how this appeals to the athlete or athlete to be, if not to everyone.

Nike Web site

Creating a Web site is another form of branding.The Nike Web site creators are

effectively promoting its product which essentially is the main purpose. The site

attempts to tell a story about the different aspects of this brand, essentially

saying that there is something for everyone.

Nike creates a website with effective forms of branding. This a Web site that is

offered in several different languages allowing for Nike to promote its product all

over the world. For this website to be effective it is important that it create a

positive affect with everyone who visits or views the website. The site gives the


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Nike product a status of superiority. This Web site is simplistic but has a futuristic

look to it, which demonstrates that not only does it intend to continue to be great

for years to come, but that it is coinciding with change over time. It is important to

note that Nike brand Web site effectively creates a sense of identification. It is a

site that one can quickly identify as Nike. Nike does an excellent job of being

original. It creates images and organizes the site that is directly specific to the

Nike brand which makes it easier for consumers to quickly identify that this is in

fact the place to go on the internet for all things Nike. The use of repetition is

present throughout the Web site. The same format and color schemes are, for

the most part, used throughout the entire website. This helps somewhat with

navigating as well as attempts to eliminate some confusion. As for simply the

way the website looks, Nike creates a Web site that is new, creative and

different. It attempts to set itself apart from other competing brands. Lastly, and

perhaps most importantly, this website effectively promotes the Nike brand. It is

encouraging exchange making it easy for consumers to purchase Nike products.

BRAND MANAGEMENT OBJECTIVES

The different brand management objectives which Nike is to consider in building

the strong brand are

Branding challenges and opportunities

Brand equity

Brand awareness

Brand image

Customer based brand equity

Brand positioning and values

Point of difference Point of parity

Brand elements

Designing marketing program to build brand equity

Pricing strategy


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Channel strategy

Designing and implementing branding strategy

Marketing Strategy

Nike's marketing strategy is an important component of the company's success.

Nike is positioned as a premium-brand, selling well-designed and expensive

products. Nike lures customers with a marketing strategy centering around a

brand image which is attained by distinctive logo and the advertising slogan:

"Just do it". Nike promotes its products by sponsorship agreements with celebrity

athletes, professional teams and college athletic teams.

Advertizing

The purpose of a campaign is to deliver a prospective consumer to the point of

sale. Nike uses what is classified as a product oriented advertising campaign.

Nike's entire campaign is centered on convincing the consumer to purchase their

product. The goal of most product campaigns is to educate and prepare the

consumer to exhibit purchasing behavior, so that their company may become the

leader in its market. Since Nike is already the leading athletic apparel company,

their goal is probably to stay on top. Some of the major strategies used toachieve this goal are the use of television, magazine, and Internet

advertisements.

4PS of Nike

Nike's 4ps comprised of the following approaches to

pricing,distribution,advertising promotion and customer service;

Pricing:

Nike's pricing is designed to be competitive to the other fashion shoe retailers.

The pricing is based on the basis of premium segment as target customers. Nike

as a brand commands high premium.


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Place:

Nike shoes are distributed to Multi Brand Store and the exclusive Nike Stores

across countries. While this necessitates a second trip for the customer to come

and pick up the shoes,it allows Nike to offer a much wider selection than any of

the competition.

Promotion:

Location,targeted advertising in the newspaper and strategic alliances serves as

the foundation of Nike advertising and promotion effort. The athletes and other

famous sports personalities are always taken as brand ambassadors. They form

the prime building blocks of their portion strategy.

Product:

The product range of Nike comprise of shoes ,sports wear,watches etc. Its

product hisory began with long distance running shoes in 1963.Wide range of

shoes, apparel and equipment.

1) SWOT ANALYSIS

v Strength

v Weaknesses

v Opportunities

v Threats

2) STRENGTHS

Nike is enjoying strong brand equity among their customers

Company have good relationship with suppliers and vendors Production system process, procedures, reflect the element of excellence

Strong brand recognition

Internet sales

Growing international presence


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Superior research and development department

Strong financial returns

Strong sense of culture in the working environment

Great celebrity spokespersons

Automatic replenishment system

Successful experience being competitive

Nike doesnt own any factories

Successful marketing campaigns

Nike is enjoying competitive advantage over their competitors by sheer

dominance

Company is maintaining good company relationship with labor, collective

bargaining agents

WEAKNESSES

Mission, vision and long term objectives need improvement

It needs improvement in marketing management

HRM needs improvement

Lack of stores catering to the active females

Poor employment practices at their international manufacturing sites

giving a bad reputation

Heavy dependency on footwear sales

Issues with Footlocker

The retail sector is very price sensitive

Most of Nike profit margin comes from the shoe sector, so in a sense they

are putting all their eggs in one basket which is risky Questionable factory working conditions


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OPPORTUNITIES

Economic component are good, economic condition in U.S.A. portray

reasonably good situation

Opportunity for Nike is that Nike is equipped to internalize the social shift

Nike is reasonably poised to take care of articles of legislation

USA political stability apparently seems favorable

Nike is reasonably implementing the contemporary technology related to

athletic shoe industry

Customer use of companys products change from athletic purpose to a

fashion item

General demand for clothing/footwear for leisure activities continues to

increase

Growing e-commerces positive effect since one of companys competitive

advantages is Internet sales

Women demand for athletic footwear and clothing is increasing

significantly.

Importance of fashion experiment and core competencies

Owners truly believe that Nike is NOT a Fashion Brand but some

consumers feel different

Could develop sport wear, sunglasses, and jewelry

Broaden locations of Nike Town and actual Nike stores

THREATS

Technological changes do bring about significant transition and that is being

experienced in athletic shoes industry as well European business environmentinclusive of reasonably favorable

Competitors which copy company's business model (high value branded

product manufactured at a low cost)

Reebok's strong presence with 204 factory direct stores


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Adidas-puma, top European competitor

The impact of foreign currency fluctuation and interest rates, and political

instability

Labor and political unrest in the suppliers countries

Cost orientated customers vs. companys higher-end market


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ANNEXURE

(1) Do you buy branded Shoes ?

(a) Yes b) No

1

Yes No

Ans. % Said yes & 1 % No.

3) Which brand do you generally use ?

a) Nike b) Reebok c) Adidas (d) Puma

3

1

3

Nike

Reebok

Adidas

Puma


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Ans. 34% Nike, 22% Reebok, 21% Adidas, 23% Puma

4) Has any sport shoes ad made an impact on you ?

a) Yes b) No c) if yes, then why ?

45% 55%

45

55

Yes

No

if yes, then why ?

Most people are influenced by Adidas ad, then with Reebok & Nike

5) What according to you is the relative importance of the followinga) Important b) Not so Imp. C) Doesnt matter

5

5

2

4

1

12

Price Durability rand Image Comfort

ability

ooks

eries1


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1) Price - 95% Important

2) Durability - 98% Important

3) Brand Image - 70% ,, ,,

4) Comfort ability - 90%

5) Looks - 65%

By this we infer that the consumer wants the shoe to be durable that is of primary

importance for them. Then the price is also very important for them. The shoe

should be comfortable. Along with that looks & the brand image is also important.

6) Do you know what technologies Nike provide ?

60

40

es

No

a) es 60% - Air Max is the best.

b) No-40%


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7) What features of Nike do you like the most ?

40

25

15

20

urability

Light Weight

tyle

omfortability

a) urability b) Light Weight c) tyle d)omfortability

Ans. 40% Light Weight, 25% omfortability, 15% urability, 20% tyle

The most like feature of Nike is the light weight shoe.

8) What range you prefer ?

Large no of people goes in far shoes that come under the range of Rs.

1500-3500. As we know that Nike is a premium brand 27% of the buy

shoes that falls under the range of Rs. 3500-7500 & lesser no of people

buy shoes ranging above 7500.


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9) How often you buy Nike or any other brand shoes

62

4

34

n

e a yr

6 onths

n 2 yr

a) n e a yr - 62%

b) 6 onths - 4%

) n 2 yr - 34%

62% of the onsumer buy Nike only on e a year. Here we noti e are think

that s heme dont buy Nike.

10) Are you Satisfied buying Nike ?

!

2 !

Satisfied

Not Satisfied


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Satisfied - 75%

Not Satisfied - 25

Only 75% of people are satisfied buying Nike.

11) Do you thick Nike Servers the purpose of being a good brand, for sports

wear ?

5"

27

17

#

gree

Don$t agree

%an

$t say

a) gree - 5 %

b) Don t agree -27%

5 % of people agree that Nike Serves its purpose far being a sport

brand.

Will you prefer Nike launching a new range which can serve the

purpose of service class ?

a) Yes b) No c) an t say


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65% say yes to the idea of lunching new range for service class 35%

say no.

11) Do you buy shoes which are advertised & endorsed by celebrity ?

&

5

55

'

( )

0 1

a) es b) o.

5% said yes they buy shoes endorsed by their favorite celebrity.

12) Is your expectation fulfilled by your shoe supplier.

62

36

2

2

es

3

o

4

an5

t6

ay


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a) Yes - 62%

b) No - 36%

c) Cant Say - 2%

13) Do you prefer buying shoes from Internet ?

1

7 7

Yes

No

a) Yes - 1%

b) No - %

14) Comparison with other Brands

In response to the question about giving, out of 10 points to the various

factors affecting their buying behavior between Nike and other following

was observed.


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7

4

7

5

7

6

4

8

6

8

0

1

2

3

4

5

6

7

8

9

Styl8

9 @

iA 8

B

C

Df

C

@ t E @F

G

H

I P @

F

Qility

R

thers

Si

T e

thers i e

) Style 7 6

) ri e 4 4

) f rt 7 8

) rand 5 6

e) rability 7 8


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CONCLUSION

The specific brand objective of Nike India would be to build up its brand

reputation, image and equity. A brand is not simply a collection of products and

benefits, but also a storehouse of value stemming from awareness, loyalty, and

association of quality and brand personality. A brand is name, term, sign, symbol

or design or a combination of them intended to identify the goods or services of

one seller or marker. It can convey up to six levels of meaning: Attributers,

Benefits, values, Culture, Personality and User. If a company treats a brand only

as a name it misses the point. The branding challenge is to develop a deep set of

positive associations for the brand.

Although these six meanings are noticeable in the Nike brand in the west and

other parts of the world, they are yet to be cultivated in India. Nike has to ensure

that their brand is built up on these pillars in India.

The secondary brand objective of Nike India would be to ensure that they match

the market share and sales volumes of its competitors. After all, a company is in

business to make profits and stay ahead of its competitors. A company, product

or brand may have a very good reputation and image, but if it is not profitable, itdoes serve its purpose. At the same time sales figures and data can be

misleading. Hence market share has also to be paid attention to.

Nike despite being one of the most popular brands in the world has nor really

caught on in India. Nike is facing severe competition with Reebok, Addidas &

Puma.

Hence it is reasonable to state that Nikes popularity level In India could do with aboost. The best way to achieve this would be some serious brand building. The

image of the brand has to be improved and people must be made aware of its

technologies rationale behind choosing improvement of brand image and

reputation as the companys primary objective is quite clear.


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Nikes distinctive competency lies in the area of marketing, particularity in the

area of consumer brand awareness and brand power. On the global scale this

key distinctive competency towers over the competitors. As a result, Nikes

market share is number one-in the athletic footwear industry in most places

around the world. Catch phrases like, Just Do It, and symbols like the Nike

Swoosh, couple with sports icons to serve as instant reminders of the Nike

Empire. It is about time that this competency is leveraged on to India.

Two key attributes of a distinctive competency are its inability to be easily

replicated and the value or benefit it offers to consumers. Few companies have

such a recognizable image and the resources to promote it. This ultimately

translates into added value for consumers. The public benefits from the strength

of Nikes image at the point purchase. For decades, consumers have come to

associate the Nike image with quality products. By associating star athletes and

motivational slogans like, Just Do It, with marketing campaigns that emphasize

fitness, competition, and sportsmanship, consumers identify their purchases with

the prospect of achieving greatness. Younger consumers especially benefit from

this positive influence. This image is something that competing companies can

not easily duplicate by simply enhancing the physical characteristics of their

products.

Nikes vision is to remain the leaser in the industry. The company will continue to

produce the quality products that have been provided in the past. Most

importantly, Nike will continue to meet the ever changing needs of the customers,

through product innovation, In the past, Most importantly, Nike will continue to

meet the ever changing needs of the customers, through product innovation. In

the past, the company has utilized product differentiation as the main competitive

strategy. As Nikes reputation dictates, it will continue to place emphasis in this

area. Nike has built business on providing products that rise above all others and

this has made it the worldwide success that it is today.


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Nike is know for its technologies advanced products and is the leader in this

area. This allows Nikes products to stand out from the rest. The companys

focus also allows it to maintain a somewhat narrow niche that enables it to

effectively capture the needs and wants of the consumers. An example of Nikes

superior and innovative technology is its new range of shoes called Air Presto

Termed as the first T-shirt for the feet, these shoes can take the shape and size

of the wearers feet. Unlike regular shoes it comes are sizes like XL, L,M,S and

XS, Each of these sizes can accommodate three conventional foot sizes. Nike

will continue to produce such path-breaking products in the future and stay

ahead of its competitors.


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ANNEXURE

QUESTIONNAIRE

(1) Do you buy branded Shoes ?

(2) Which brand do you generally use ?

(3) Has any sport shoes ad made an impact on you ?

(4) What according to you is the relative importance of the following

(5) Do you know what technologies Nike provide ?

(6) What features of Nike do you like the most ?

(7) What range you prefer ?

(8) How often you buy Nike or any other brand shoes

(9) Are you Satisfied buying Nike ?

(10) Do you thick Nike Servers the purpose of being a good brand, for sports

wear ?

(11) Do you buy shoes which are advertised & endorsed by celebrity ?

(12) Is your expectation fulfilled by your shoe supplier?

(13) Do you prefer buying shoes from Internet ?

(14) Comparison with other Brands.


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BIBLIOGRAPHY

www.brandcapita.com

www.nike.com

www.nikebiz.com

www.google.com

www.wikipedia.com

Pooja V. Arora

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