Bhavna Update
Bhavna Update
Bhavna Update
OF
PROJECT REORT ON
SUBMITTED BY
CERTIFICATE
B M S Semester __VI__ has undertaken & completed the project work titled
I the undersigned MISS BHAVNA ANIL KAMBLE declare that the work
embodied in this project work titled “CONSUMER BEHAVIOR
ANALYSIS FOR NIKE Forms my own contribution to the research work
carried out under the guidance of ASSIST PROF: PRACHI THAKUR
1, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules.
To list who all have helped me in difficult because they are so numerous and the
depth is so enormous
I would like to acknowledge the following as being idealistic channel and fresh
dimensions in the completion of this project.
I take this opportunity to thank our Coordinator MINU SINGH, for her moral
support and guidance.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lately, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially My Parents and Peers who
supported me throughout my project.
EXECUTIVE SUMMARY
This black book project on consumer behavior analysis for Nike delves deep
into understanding the complex dynamics that drive consumers to choose Nike
products. The primary objective is to unravel the intricacies and factors
influencing purchasing decisions, providing valuable insights for strategic
decision-making.
The project commences by tracing the evolution of Nike's brand identity,
recognizing it as a cornerstone in shaping consumer perceptions. A detailed
examination of Nike's marketing strategies follows, highlighting the brand's
mastery in leveraging endorsements, partnerships, and innovative campaigns.
This marketing prowess becomes a focal point in understanding how Nike
maintains a prominent position in the competitive sportswear industry.
Cultural and social influences emerge as significant determinants in consumer
choices, with an exploration of trends and social media dynamics. The project
recognizes the profound impact of these elements on shaping consumer
perceptions and preferences, showcasing Nike's adaptability and resonance with
diverse audiences.
Delving into the psychological realm, the analysis uncovers the motivations
driving consumers to opt for Nike. From the desire for self-expression to the
emotional connections forged through marketing narratives, understanding these
psychological factors provides profound insights into the brand-consumer
relationship.
Market trends and sustainability considerations are scrutinized, acknowledging
Nike's role in shaping and responding to these evolving dynamics. The findings
present a comprehensive picture of how market trends and sustainability impact
consumer behavior, shedding light on Nike's position in this landscape.
The strategic implications derived from the analysis become invaluable for
Nike's future endeavors. Recommendations are crafted, emphasizing the need
for continued innovation, a community-centric approach for enhanced brand
loyalty, and cultural responsiveness to resonate with diverse global audiences.
INDEX
SR No TOPIC PAGE
NO
1 Introduction
2 History of NIKE
3 NIKE Corporate social responsibility
4 Literature of the study
5 Research methodology
6 Data Analysis
7 Limitations
8 Suggestions
9 Conclusion
10 Bibliography
Chapter 1
INTRODUCTION
In the vast and dynamic realm of consumer behavior, the choices individuals make when
selecting products are complex and multifaceted, influenced by an array of factors that
intricately weave together. This black book project embarks on a compelling journey into the
heart of consumer preferences, focusing its lens on the globally recognized sportswear giant
—Nike. The project's primary objective is to meticulously analyze the multifaceted dynamics
influencing consumers' decisions to opt for Nike products, presenting a thorough
understanding that can serve as a guide for strategic decision-making.
Nike, a name that resonates far beyond the realm of sportswear, has transcended
into a cultural icon synonymous with athleticism, innovation, and lifestyle. It
has become more than a brand; it is a symbol of identity and aspiration for
millions around the world. This project aims to dissect the elements that
contribute to the magnetic pull of Nike in the consumer market, starting with an
exploration of the evolutionary trajectory of Nike's brand identity. Recognizing
the brand as a dynamic entity that shapes consumer perceptions, this analysis
seeks to unravel the subtle nuances that make Nike a preferred choice among
consumers.
The marketing prowess of Nike stands as a pillar of its success. From high-
profile celebrity endorsements to strategic partnerships and groundbreaking
campaigns, Nike has mastered the art of creating not just products but
experiences. This project will scrutinize the strategies that have made Nike a
master of marketing, exploring the impact of these initiatives on consumer
choices. The narrative strategies employed by Nike resonate beyond the
products, fostering brand loyalty and influencing purchasing decisions.
Cultural and social influences are integral components of consumer behavior,
and in the age of social media, these dynamics have taken center stage. This
project will navigate through the intricate threads of cultural trends, examining
how social platforms serve as influential channels shaping consumer
preferences and perceptions. From viral trends to community engagement, the
project aims to uncover how Nike adapts to and leverages these cultural and
social dynamics, staying at the forefront of consumer consciousness.
Delving into the psychological dimensions of consumer choices, the project
aims to decipher the motivations that drive individuals to align themselves with
the Nike brand. Beyond the functional aspects of sportswear, this analysis will
explore the emotional connections, self-expression, and aspirational elements
that make Nike more than a product—it becomes a part of consumers' identity.
Psychographic
Behavioural
Geographical
Nike selects people who understand and aim for an active lifestyle in
psychographics segmentation. The brand’s audience revolves around
anyone who has a body and wants to be an athlete. For Nike, if you have a
body, then you’re an athlete. Also, if you’re constantly thinking about
sports, watching sports, or doing sports, you belong to Nike’s target market.
2 Brand loyalty: Established brand loyalty can drive consumers to choose Nike
due to positive past experiences and a sense of trust in the brand.
3 Perceived quality and performance: The belief that Nike products offer
superior quality and performance can be a significant motivator, aligning with
psychological desires for excellence.
4 Status and prestige: Owning Nike items may fulfill a desire for social status
and prestige, contributing to a sense of belonging to a specific lifestyle or
community.
5 Real time update and release: Social media enables Nike to share real-time
updates on product releases, events, and promotions, creating a sense of urgency
and excitement that can drive consumer engagement and purchases.
1.7 FACTORS INFLUENCING CONSUMERS RESPONSE TO
NIKE SUSTAINABILITY AND ETHICAL PRACTICES
OVERVIEW
While Nike’s success is often attributed to its innovative products and strong
branding, Nike’s products aren’t its centrepiece. Rather, it’s how it engages its
audience through incorporating meaningful stories into its brand
communication.
SO WHAT?
While Nike (and many other brands) have every reason to talk big about their
latest technologies and products, that’s not what it does. Instead, putting
customers at the heart of its communication and empowering them to dream is
the core of its marketing strategy, and that’s how Nike succeeds.
1.8 JUST DO IT
INTRODUCTION
What do you think of when you think of Nike? Is it the swoosh logo, the “Just
Do It” slogan, or popular athletes? While those are the classics of its marketing
strategy, today, Nike is all about real customer value. For that very reason, it’s
one of the worldwide Nike doesn’t do its content marketing just to tick a box
and call it a day. Instead, it sets the bar high when it comes to having a
meaningful, relatable theme that fits in with the brand.
In this article, we’ll showcase a few of the company’s campaigns to convey how
a little storytelling goes a long way. But it isn’t just any old storytelling; it’s
storytelling that sells the emotional benefits offollowing Nike’s products in a
subtle yet compelling manner. YouYo too, can follow the same strategy to build
a loyal customer following.
1.9 MAKE EMOTIONAL CONNECTION WITH CUSTOMER
Nike campaigns induce the right emotions in their customers through carefully
crafted ads that tell meaningful stories.
Keeping in line with its “Just Do It” slogan, Nike portrays most of its customer
segments as heroes challenging themselves through the hardships of life and
fighting against any voices claiming that “they can’t,” only for Nike to step in to
tell them “Just Do It.”
In doing so, Nike, as a brand, became more meaningful in the eyes of its female
customers.
The campaign also coincided with Nike’s launch of its first maternity
collection, NikeM. On top of that, it had partnered with pre- and post-natal
expert Jane Wake to develop audio-guided workouts for new mothers in the
Nike Run Club app.
Nike listened to its customers, learned about their pain points, and genuinely
supported their relationship with sports during that transformative period, while
fully embracing their challenges.
1.10 HOW NIKE CAN HELP BRICK AND MORTAR
Yes, e-commerce might be showing a growing trend but that does not mean that
brick and mortar retail stores are planning to give up the spotlight. In fact, brick-
and-mortar stores contribute to 94% of retail sales.
And after taking a look at a retail giant, Amazon, opening a physical store we can
see that brick-and-mortars are here to stay for a while.
Is it the nice smile of a sales rep? Perhaps a professional advice from the assistant?
Or maybe just an excuse to leave the house?
All of these are reasons why people still enjoy brick-and-mortar stores but there are
two core things that made e-commerce giants consider having their own space in
the real world.
To better understand this let’s take a look at Nike, a sportswear company that
knows the secret recipe that helps retail businesses with physical space to survive
the huge e-commerce wave!
Not that they are bad but those are things that online storesoffer as well so why
should a customer bother and visit your physical store when it takes him/her one
click to achieve the same result.
The real answer is customer experience, Just like Nike’s. It is the advantage that
physical locations have over online retailers. Today, people shop for experiences
rather than goods. So providing it to your client’s will guarantee the safety of your
brick-and-mortar store. What do we mean exactly?
One of the things that differentiate us from robots are genuine emotions, and we
strongly value them. We connect every experience with the certain type of emotion
and shopping is no exception. The technological innovation has not advanced at
such a level that shopping at e-commerce would win over physical shopping when
it comes to emotions.
Think about it, imagine children visiting the toy shops, running around while
exploring and testing new toys. Or perhaps a bride before her wedding trying on a
wedding dress with her friends.
What about a person buying a car? Visiting the store, sitting in the car and testing
the feeling of it? Do you think these emotions, feelings and experiences can be
replaced by e-commerce? Not yet at least.
Simply looking at the screen is just not enough to charge you with positive energy.
One has to experience it in person and that is the reason why customers keep
visiting the brick-and-mortar stores.Some brick-and-mortar retailers began
understanding that price was not the reason that brought customers to their shops.
You must have noticed yourself small minibars at the grocery stores where people
enjoy the food or drinks that they have bought.
This is one of the strategies the grocery stores uses to make customers purchasing
journey all about their experience. Such facilities challenge the online buying world
with free degustations as well as dining bars inside the store!.
• PRODUCT DEVELOPMENT
Nike's product development is strategically designed to influence and captivate
customers. Here are key aspects of Nike's approach to product development to
sway consumer behavior:
1 Innovation and Technology: Nike consistently invests in cutting-edge
technologies to enhance product performance. Innovations like Nike Air
cushioning, Flyknit technology, and React foam not only improve functionality
but also create a sense of exclusivity and desirability among consumers.
• PRICE OPTIMIZATION
.employs various strategies for price optimization to attract and retain customers
while maximizing revenue. Here are key aspects of Nike's approach:
5 Dynamic Pricing: Nike employs dynamic pricing, adjusting prices based yon
various factors like demand, inventory levels, and market trends. This ensures
that prices are responsive to changing market conditions and customer behavior.
6 Free Shipping and Easy Returns: Members enjoy free standard shipping on
Nike.com, making online shopping more convenient. The program also offers
easy returns, enhancing the overall customer experience.222
2 HISTORY OF NIKE
It doesn't matter whether you're into sneakers, music, fashion or sports, chances
are you'll be familiar with Nike. Since its 1964 inception, American-born Nike
has seemingly dominated the sneaker and trainer market with an abundance of
designs, functional pieces and clothing styles, but where did it come from and
how did it grow into the world's largest footwear company?
There's no doubt if you're searching for the history of Nike there are a million
questions you need answering, so here at The Sole Supplier, we've made it our
mission to bring you the definitive guide of the Nike brand's history. From
humble beginnings to the name choice, to some of its most iconic products,
we're taking a look at a timeline of some of Nike's iconic moments that helped
shape the brand into the force it is today.
Humble beginning
story begins with two men named Bill Bowerman and Phil Knight. Bill
Bowerman was a track and field coach at The University of Oregon who re-
united with his previous student Phil Knight after he had a brief stint at Stanford
University. Bowerman was fascinated with the idea of optimising athletic
footwear and running shoes for performance, and so in turn he began tinkering
with different models after picking up some tricks and tips from a local cobbler.
On January 25th 1964, the duo decided to found Blue Ribbon Sports, a Eugene
Oregon-based footwear company which for many years operated out the back of
a car at track meets.
The company began as a distributor for a range of imported shoes - namely
Onitsuka Tiger. Knight was amazed with the quality of Onitsuka Co.'s trainers
and found them to be a breath of fresh air compared to the German dominated
sneaker market. While the world was caught up deciding between Puma and
Adidas, Phil Knight looked to Onitsuka Tiger and Japan for a new, premium
running trainer.
After a few years of being Onitsuka's sole distributor in the US, a rise in
competition led Knight and Bowerman to think about how they would do things
differently. The companies drifted away from one another as Blue Ribbon
Sports became Nike in 1971 and prepared to launch their own trainer.
Bowerman had always created prototype trainers for the athletes he coach. After
pulling apart pairs of Onitsuka Tiger running shoes and thinking of ways he
would do things differently, he started working on what would become the first
ever Nike sneaker.
How did Nike gets its name
Changing the name of Blue Ribbon Sports to Nike was the idea of the
company's first ever employee, Jess Johnson. The brand's iconic Swoosh logo
had already been designed by Carolyn Davidson, a student at Portland
University, however the company still had no name. Drawing inspiration from
the design of the Swoosh, Johnson suggested the name Nike, named after the
winged Greek goddess of victory. The rest is history.
Although the Waffle Racer was well-designed and a minor success, it did not
launch Nike to the same heights as Adidas or Puma just yet. However, a new
design did help put them on the right trajectory.
The duo found success with a design originally called the 'Aztec'. The name had
to be changed due to Adidas having a similarly named sneaker, so to reference
history and the fall of the Aztecs, the shoe became the Nike Cortez. The Cortez
was a great success after being debuted in the Mexico Games due to its
advanced design and technology and helped Nike on their way to become the
sneaker giant we know today.
The Cortez has a confusing past, as it was originally designed and produced by
Onitsuka Co. before Knight and Bowerman decided to release their own version
under the name Nike. When Onitsuka Co. found out about Nike selling the
Cortez model, the issue escalated and ended in a court battle. The argument was
settled in court, with the judge ruling that both brands could sell their own
iteration of the Cortez under their name.
Gaining traction
By 1976, Nike was ready to continue on with expansion and so they hired John
Brown and Partners, a Seattle based advertising company to help with gaining
further exposure. A year later, the agency created the first brand ad for Nike
entitled "There is No Finish Line". Though the ad didn't contain any actual Nike
shoes up close, it was seemingly a success and further helped propel the brand
into the stratosphere. By 1980, Nike had attained a whopping 50% market share
in the U.S. athletic shoe market and then went public as a company later that
year.
Following the popularity of its sneakers, Nike decided to expand out into the
clothing world in 1979 and made a range of athletic clothing and sportswear.
One of its first pieces was the Windrunner, a lightweight jacket that quickly
became a favourite both on the street and on the track due to its modern chevron
style design.
The signing was spurred on by the promise that Nike would give MJ his own
signature line and so, Air Jordan was born. Proceeding the signing, Jordan
would play a few games in the Nike Air Ship sneaker, but that would eventually
be banned due to the colourway not adhering to NBA standards of the time.
Instead, Nike designers Peter Moore, Tinker Hatfield, and Bruce Kilgore all
decided to focus their energy elsewhere and Air Jordan 1 was born.
The original Air Jordan 1 sneakers were designed exclusively for Michael
Jordan in late 1984 and would eventually go on general sale in April of 1985.
The shoe itself featured a high-top construction, the famous Nike Swoosh and a
black/red "Bred" colourway.
In 1987, Nike launched a new range of sneakers starting with the Air Max 1.
These sneakers were designed primarily by Tinker Hatfield and featured the
first physical encapsulation of air within their cushioned midsoles. The original
colourway arrived in a University Red/White colourway, and to this day is a
silhouette desired by sneakerheads around the world even today.
GLOBAL DOMINATION
Furthering on with the 1990s efforts, Nike opened its first range of Niketown
chain stores, the first of which arrived in Portland Oregon. These distinct stores
celebrated some of Nike's sponsored athletes such as Micheal Jordan while
offering a full range of exclusive Nike products for all sorts of sports. In 1996,
Nike signed famed golfing superstar Tiger Woods to their roster. This move
helped Nike dive deeper into new territory within golf and spurred a fresh
collection of fans across the globe.
1997 saw Nike's foray into Skateboarding with a new line of sneakers featuring
increased padding, Zoom Air insoles and enhanced materials, ideal for
withstanding heavy impacts and skateboarding wear and tear. Due to the success
of this line, Nike decided to double-down on its foray into skateboarding and in
2001 released the Nike SB range. Quickly after the launch of Nike SB, the
brand decided to release a collection of signature Dunks for each of its pro
skaters. This latest Dunk SB iteration was originally a basketball sneaker but
instead came equipped with a padded tongue, thicker laces and robust
construction to ensure maximum comfort and durability.
As it stands in 2021, Nike, Inc. exists as the biggest and largest supplier of
athletic shoes, apparel and other sporting equipment. The group also owns other
well-known brands such as Jordan and Converse.
.1 Nike Timeline
1964 - Phil Knight and Bill Bowerman found Blue Ribbon Sports.
1971 - Cutting ties with Onitsuka Tiger (now Asics), Blue Ribbon Sports
becomes Nike Inc., using swoosh logo created by Portland State University
student Carolyn Davis for $35
1971 - Bowerman comes up with iconic sole pattern for Waffle Trainers after
putting rubber into a waffle iron
1972 - Romanian tennis player Ilie Nastase becomes the first athlete to sign an
endorsement with Nike.
1979 - Nike introduces patented "Air" technology with new Tailwind shoe.
1987 - Nike drops ad for new Air Max shoes set to The Beatles' "Revolution,"
making it the first ad to use the band's music.
1989 - "Bo Knows" ad campaign drops featuring baseball and football star Bo
Jackson.
1990 - First Niketown store opens in Portland, Oregon.
1991 - Activist Jeff Ballinger publishes report exposing low wages and poor
working conditions among Indonesian Nike factories. Nike responds by
instating its first factory codes of conduct.
1998 - In the face of widespread protest, Nike raises the minimum age of its
workers, increases monitoring, and adopts U.S. OSHA clean-air standards in
overseas factories.
2004 - Phil Knight steps down as CEO and president of Nike, but retains
chairman role as William D. Perez becomes the company's new CEO.
2.2 CONTROVERSY
Sweatshops
Nike has faced a long history of controversy over its labor practices. The
company was founded on a principle of finding cheaper labor to produce same-
quality goods and followed this unfailingly, till it finally came back to bite
them. Nike’s factories were initially in Japan, but then moved to cheaper labor
in South Korea, China, and Taiwan. As the economies of these countries
developed, Nike again shifted, moving away from labor in South Korea and
Taiwan to focus on China, Indonesia, and Vietnam.Not much was noted of this
until activist Jeff Ballinger published a report in 1991, documenting the poor
working conditions of Nike's operations across Indonesia. This was followed
with a popular article in Harper's Magazine, detailing the life of an Indonesian
Nike employee who worked for 14 cents an hour.Outrage fermented among the
public, with protests against the shoe ware giant at the 1992 Olympics and an
increased media scrutiny on the plight of sweatshop workers. This came at the
same time the company sought to expand its Niketown retail stores, resulting in
mass protests around the planned expansions.With protests around college
campuses, calls for boycotting the company, and pressure put on its stars like
Michael Jordan to denounce the brand, Nike made a concerted effort in 1998 to
improve the labor conditions of its factories.It included raising the minimum
age among workers, increasing the monitoring of factory conditions, and
enforcing U.S. standards for clean air. This was followed by Nike's creation of
the Fair Labor Association in 1999, and audit of roughly 600 factories between
2002-2004, and the public disclosure of all of its factory locations in
2005.While reports of abuse at the Nike factories still persist, many human
rights activists have acknowledged Nike's efforts to have minimized the worst
problems at these factories, and the public outcry today over the company's
labor conditions is a shadow of what it once was.
Colin Kaepernick
On Labor Day of 2018, Nike made a huge splash, tweeting a photo of NFL
player Colin Kaepernick as the new face of its brand.
The 49ers quarterback had become a lightning rod for controversy after being
the first football player to take a knee during the national anthem in protest of
police brutality toward black Americans. He received a mix of support and
backlash from the public, with some calling him a hero and others criticizing his
actions as "un-American."
This controversy only intensified with Donald Trump making criticism of the
protest Kaepernick started a central talking point in his campaign and, later,
presidency. 49ers management consequently did not renew Kaepernick's
contract and no other NFL team signed him. Fittingly, the ad overlay of the
black-and-white photo of Kaepernick's face with the text, "Believe in
something. Even if it means sacrificing everything," and the classic Nike
slogan, "Just Do It." below.
The primary environmental criticism following Nike has been its refusal to
eliminate hazardous materials from its supply chain. As pointed out by
Greenpeace, this affects everything from factory workers to waterways to
consumers. The hazardous chemicals pollute the environment, threaten to
poison those who work with them, and allow a potential health risk to persist
among users of Nike's apparel.
Over the years, the Nike Swoosh has undergone subtle but significant changes,
evolving with the brand while maintaining its core identity. This terrific video is
an excellent summary of the history of the Swoosh.Over the years, the Nike
Swoosh has undergone subtle but significant changes, evolving with the brand
while maintaining its core identity. This terrific video is an excellent summary
of the history of the Swoosh.
Initially, the Swoosh was accompanied by the word ‘Nike’ in a bold font.
In the late 1970s, the logo appeared solo on Nike’s footwear, representing the
brand’s growing recognition.
In 1978, Nike transformed its logo, transitioning the Swoosh from a line
drawing to a solid, black checkmark. Concurrently, the Nike wordmark evolved
from a cursive script to an italicized, all-caps format in Futura Bold font.
By the 1980s, the Nike Swoosh had become a symbol of global athletic
excellence and performance. The logo appeared in various colors and designs,
adapting to different product lines while maintaining its fundamental shape.
By 1995, the Nike Swoosh had achieved such widespread recognition that the
company could confidently use the symbol without the accompanying
wordmark.
Moreover, using a symbol taps into the human brain’s automatic response to
images, fostering a deeper psychological connection with the brand. This shift
towards a more image-centric branding aligned with the neurological basis that
people often react more profoundly and instinctively to visual stimuli than to
text.
Beginning in 1988, this logo variation was frequently paired with Nike’s newly
introduced and now-famous slogan, ‘Just Do It.’ This combination further
solidified Nike’s brand image, merging its recognizable logo with a
motivational catchphrase that resonated globally.
Cultural impact beyond sports. The Nike Swoosh has transcended sports to
become a cultural icon, appearing in movies, music, and political movements,
representing more than athletic excellence.
Nike, Inc., a global leader in sportswear and athletic footwear, has demonstrated
a steadfast commitment to corporate social responsibility (CSR), aligning its
business practices with ethical, environmental, and social considerations. This
narrative explores Nike's multifaceted approach to CSR, examining key areas
where the company has made significant strides.
Labor Practices and Supply Chain Ethics: Nike, having faced scrutiny in the
past over labor practices in its supply chain, has implemented robust measures
to improve conditions for workers. The company now upholds stringent
standards and codes of conduct for its global network of suppliers. This ensures
ethical labor practices, aligning with international norms. By addressing
historical controversies, Nike has worked towards creating a supply chain
characterized by fairness and respect for human rights.
Nike offers a broad product range. Its brand image and popularity have grown
stronger with time. Its main competitors are Adidas, Reebok, Under Armour,
FILA, Sketchers, New Balance, and Puma. The company targets young
customers mainly. Nike customers are primarily in the 15-45 age group. Its
target market also includes female customers as well as teenagers. However, to
grow its appeal among younger customers, the company has introduced an
excellent range of products for kids. You will see young celebs and athletes in
Nike ads as well as teenagers.
Here is its marketing mix that analyses the seven P’s – Product, Price, Place,
Promotions, People, Processes, and Physical evidence.
Product:
Nike offers a vast range of products, including sports shoes, apparel, gear, and
accessories. It makes and sells products for men, women, boys, and girls. It
also offers a broad range of shoes of varieties and styles suited for use in various
sports. For example, there are sports shoes for basketball, football, running,
gym, and even lifestyle shoes available from Nike. It also offers sportswear like
tech fleece and Windrunner for athletes, shorts, t-shirts, and pants.
Some of the main categories of products for men by Nike are as follows:
1. Shoes
2. Compression and Nike Pro
3. Tops and Shirts
4. Hoodies and Pullovers
5. Jackets and vests
6. Pants and tights
7. Shorts
8. Surf and swimwear
9. Socks
10.Accessories and equipment
Place:
Nike sells its products to customers globally through both online and offline
channels. These products are available at the brand’s retail outlets and its
distribution canters operating globally. It sells its products to wholesalers both
in the US and international markets. Its direct to customer channels include both
inline and factory retail outlets as well as online sales through its website.
Nike’s global distribution system is also divided into global brand divisions.
Price:
One of the critical differentiators for Nike is its ability to charge higher prices
than its competitors. However, this ability is based on the premium quality of its
products. Its products are good looking, elegantly crafted, suited for sports use,
and durable. The premium quality of its products enables it to charge premium
prices for them. However, its popularity and brand image plus the customer
loyalty it enjoys are also important factors that support its premium pricing.
Nike does not set prices according to the market condition or the costs of
manufacturing. Instead, it sets prices according to the estimated value of a
product. Some more shoe brands and the leading competitors of Nike have also
introduced an excellent range of shoes in the premium price segment.
While there is price competition in the industry and prices matter for a large part
of middle-class customers, Nike’s pricing strategy has never impeded growth,
and it continues to rule as the largest shoe brand. Its marketing strategy is one of
the key factors that the company continues to find growth despite the premium
prices. It enjoys a large and loyal customer base as well as the strongest position
in the shoe industry. Marketing continues to drive the demand for Nike
products.
Promotion
Nike’s logo and slogan differentiate it from others and give the brand a distinct
identity in the crowd of the brands. It provides the brand with a uniqueness.
Apart from that, the brand utilizes a mix of other strategies for the promotion of
its products and brand. Nike is a well-known company, and it gains a lot of
publicity from the news resources. The brand promotes itself through a mix of
traditional and modern promotional strategies. It advertises its products through
online and offline channels. Apart from that, Nike uses sponsorships of sports
events and sports personalities for the promotion of its products.
Nike has grown its use of digital marketing channels for the promotion of its
products. The company uses digital video marketing in plenty to promote Nike
products. It frequently posts videos to YouTube, including educational and
promotional videos. The promotional videos of Nike mostly include athletes and
sports personalities.
However, many of these are motivational videos that are targeted at the sports
community mainly. Its marketing strategy and methods have been appreciated
widely for their effectiveness. Nike has also maintained a strong brand image.
Apart from marketing and product quality, its investment in CSR has also
helped it strengthen its social image. These things are absolutely critical for
large businesses because of the public’s concern for the social image of the
businesses they are buying from.
People:
Human resource management has emerged as a critical area in the 21st century.
Companies need to focus on managing their human capital strategically to
maintain their competitive advantage. It is because their people are their
primary source of competitive advantage on which a firm’s other critical
competitive advantages are based. The growth of a company depends on the
skills and knowledge of its people as well as their performance.
As of 2020, the company employed 75,400 people. Nike invests in its people to
help them find faster career growth and development. Apart from offering them
training and better career management tools, Nike also involves them in its CSR
programs. The company has formed human resource policies that maximize job
satisfaction for the employees. Apart from competitive salaries and benefits
packages, it also uses modern training tools and techniques to offer its
employees opportunities for improving their performance.
Processes:
Nike has outsourced nearly all of its production to external suppliers. It leaves
the company free to focus on all the other essential business processes. The
faster growth and business expansion of the company is because of its focus on
marketing, product design and innovation. The company is primarily involved
in marketing, distribution, and store operations. Nike has optimized its value
chain for maximizing output and faster growth. It invests a significant sum each
year in marketing as well as research and development to achieve more growth.
The company’s focus on higher efficiency of business processes has also helped
it maintain its growth momentum.
Physical Evidence:
Nike is a global business that sells its products in nearly all corners of the globe.
Apart from its products and the physical infrastructure of the organization, the
company’s packaging is also the physical evidence of its business operations.
Nike is a physical business, and therefore, you will come across a lot of physical
evidence when navigating its business system.
4.2 CONSUMER DECISION PROCESS
The consumer decision process (CDP) model is important for making marketing
decision; CDP is the stage of consumer goes through before, during, and after
buying the product or service in decision making processes. In first stage of
CDP starts with need recognition, the buyers understand what their problem or
need in between current motivation state and desired motivation state. For
example, I saw a commercial for brand new series pair of Nike shoe, to
stimulate me that I need a new Nike shoe. Customer may need to pass through
the stage step by step in every purchase. However, in daily purchase customer
can skip the stage of information search and evaluation straight to purchase
decision. For example, I feeling hungry need to buy food and I straight forward
to make purchase decision to buy my favourite food McDonald.
The next stage of CDP is information search; under information search
consumers can search information according to internal or external sources of
information. Internal sources of information are the information retrieved
knowledge from memory and the information may be based on a person past
experience, past conversation, or articles read previously. External sources of
information can get from environment can be the new sources of information
and include friends, family, salesperson, advertisements, brochures, websites,
and media article. The marketers will identify which target markets of
information sources are most influential, the impact of these sources of
information will depend on the products and customers. For example, I want to
buy new pair of shoe and before I buy I will take advice from my friends of
their experience on different brands of shoe and search information about the
company brand product quality.
The third stage of CDP model is evaluation of alternatives, which the consumer
evaluation alternative bounds in the choice set by using information. Evaluation
is an important determinant of the degree is whether the customers feel
“involved” in the product. By involvement, that means the extent of perceived
relevance and importance that accompanies with the own choice. The
involvement had categories into low-involvement purchases and high
involvement purchases. Low-involvement purchases mean have simple and low
expenses in evaluation process. For example, buying soft drink and food in the
supermarket is under low-involvement purchases. High involvement purchases
are usually branded goods and involve in high expenses or personal risk. For
example, doing business, making investment, buying house and car are under
high-involvement purchases. Nike shoe is categorising in high-involvement
purchases because is branded goods and comparing with other brands Nike
much more expensive than usually brands.
The fourth stage of CDP model is purchase, the stage that consumer actually
buy the product. For example, after I read the advertisement Nike shoe, I
consider buy the Nike shoe to satisfying my need or want. The buying decision
may take place immediately or in few weeks later. The seller may need to
attributes the product by compared with the competition with own advantages
and giving trial or sampling of the product hope the sale increasing.
The final stage of CDP model is post-purchase evaluation, after customers buy
the product and used, the customers will compares it with expectation on their
past experience either the product is satisfied or not. The “cognitive dissonance”
concept will commonly occur when the customers experience concerns after
making purchase decision. Cognitive dissonance mean the customers buy new
product is preferable than the product is using and customers may not
repurchase the product is using or switching other brands. For example, before I
bought Nike shoe I was wearing Bata shoe, I feel like Nike shoe is more
comfortable and good quality so I may not repurchase Bata shoe and changing
the mind to purchase Nike shoe. To manage the experience success is the job of
the marketers to persuade the potential customers to purchase the product will
satisfy their needs, for the customers that purchased the product should be
encouraged that their decision making is right to repurchase the product and
avoid them changing their mind to choose other product. For example, I had
bought Nike shoe and wearing it, I feel that Nike shoe giving more comfortable
and good quality than other shoe. In future purchase decision I will repurchase
the Nike shoe because it satisfies my needs.
5 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Hypothesis 1 (Quantitative):
Hypothesis 2 (Quantitative):
Hypothesis 3 (Qualitative):
Hypothesis 4 (Qualitative):
achieve the objectives of the project. In order to determine the present position
and satisfaction of customers of nike
The number of items selected from the universe to present the universe is called
size of the sample. So for the purpose of this study, a total of 100 respondents
will be approached. The sampling technique used for the study will be
convenience sampling.
DATA COLLECTION:
1. Primary data
specific purpose or project. It is data that has not been previously collected,
processed, or analysed by anyone else. This can include surveys, interviews,
experiments, observations, or any other method of data collection directly from
the source.
2. Secondary data
Secondary data refers to data that has been collected by someone else for a
purpose other than the one at hand. This data has already been processed,
analysed, and often published in reports, articles, or other sources. Researchers
can use secondary data for their own analysis and research purposes without
having to collect primary data themselves. Examples of secondary data include
government statistics, academic research papers, company reports, and
previously conducted surveys. For the study, both primary and secondary data
will be collected. For primary data, a questionnaire can be developed and
conducted a survey of 100 samples and personally takenone to one conversation
with nike users For secondary data, existing literature in form of magazines,
papers, company literature, book, web sources will be consulted.
QUESTIONNAIRE:
Interpretation
The data suggests that brand reputation and product quality are significant
factors influencing purchasing decisions for Nike products, with 30% and 66%
emphasis, respectively. Price, at 4%, seems to have a comparatively lower
impact on the decision-making process. This implies that consumers prioritize
the brand’s image and the quality of the products when choosing Nike over
other factors like price.
Interpretation
The data indicates that design and style play a substantial role in purchasing
decisions for Nike products, with 48% considering it important, 32% finding it
extremely important, 16% describing it as somewhat important, and only 4%
stating it is not important. This emphasizes a significant emphasis on the
aesthetic aspects of Nike products in influencing consumer choices.
Interpretation
The data strongly indicates that respondents believe Instagram is the most
effective platform for Nike advertising, with 98% selecting it. Only 2%
mentioned Facebook or Twitter, and there were no responses indicating other
preferences. This highlights a dominant perception of Instagram's effectiveness
for Nike advertising among the surveyed individuals.
The data reveals that a substantial portion of respondents find online reviews
and ratings influential in their decision to purchase Nike products, with 26%
considering them very influential and 36% stating they are influential.
Additionally, 36% express a neutral stance, while only 2% find online reviews
and ratings not influential. This emphasizes the significance of online feedback
in influencing consumer decisions for Nike products.
8 How satisfied are you with the variety of sizes and style offered
by Nike for their products
Interpretation
The data indicates a high level of satisfaction with the variety of sizes and styles
offered by Nike, with 60% expressing satisfaction, 26% stating they are very
satisfied, and 14% maintaining a neutral stance. This suggests that a significant
majority of respondents are content with the diversity of options available in
terms of sizes and styles for Nike products.
The data reveals that a notable portion of respondents consider the availability
of limited edition or exclusive Nike products important in their purchasing
decisions, with 52% stating it is important, 28% finding it very important, and
20% describing it as average. This suggests that the exclusivity factor plays a
significant role for a substantial portion of consumers when deciding to make a
purchase.
The most influential factor in the decision to purchase Nike products, according
to the data, is brand reputation at 40.8%. Following closely is product
performance at 38.8%. Price holds an 8.2% influence, and style/design
contributes to the decision for 12.2% of respondents. This suggests a significant
emphasis on brand reputation and product performance in shaping purchasing
decisions for Nike products.
The factors influencing the choice between online and offline purchasing of
Nike products are varied among respondents. Convenience holds the highest
influence at 30%, followed closely by availability at 26%. Both price and in-
store experience contribute equally, each at 22%. This suggests that a balance of
factors, including convenience and availability, plays a significant role in
determining whether consumers opt for online or offline channels for Nike
purchases.
Interpretation
The majority of respondents, at 70%, express satisfaction with Nike's customer
service, while 28% indicate a higher level of satisfaction, describing their
experience as "very satisfied." This suggests an overall positive sentiment
toward Nike's customer service, with a notable portion having an especially
positive experience.
The majority of respondents, at 57.1%, believe that Nike caters well to different
age groups in terms of product design and marketing. Additionally, 24.5% feel
that Nike caters very well, while 18.4% express a neutral stance. This suggests a
positive perception overall, with a significant portion acknowledging Nike's
effectiveness in appealing to diverse age demographics.
7 LIMITATIONS
1 Limited Access to Internal Data: Access to Nike's internal consumer
data may be restricted, limiting the depth of your analysis to publicly available
information.
SUGGESTIONS
Nike can elevate its consumer engagement by implementing personalized
marketing campaigns that resonate with individual preferences and behaviors.
Leverage data-driven insights to optimize product recommendations, enhancing
the online shopping experience for consumers. Capitalize on the allure of
limited edition releases by strategically planning and innovating in this space to
create anticipation and demand.
8 CONCLUSION
the consumer behavior analysis of Nike has unveiled valuable insights that can
guide strategic decisions to enhance brand engagement and consumer
satisfaction. The multifaceted approach, combining surveys, interviews, social
media analysis, and behavioral analytics, provided a comprehensive
understanding of how individuals interact with Nike products.
The focus on enhancing the mobile app experience and adapting marketing
messages to cultural nuances emphasizes Nike's dedication to providing a
seamless and globally relevant brand experience. Collaborations with
influencers and a robust loyalty program can amplify brand messaging and
foster lasting connections with consumers.
9 BIBLIOGRAPH