Term paper Of Consumer Behavior

Topic: Consumer behavior towards different branded shoes

Submitted to: Mr. Sanjay Sir

Submitted by: Ashiz Aziz Bhat Section: Rs1802 Roll No: B53 Group: G2 Reg.No:10811517

TABLE OF CONTENTS
CONTENT
Acknowledgement Declaration Executive Summary Research Objectives Research Methodology Limitations Company Profile Data Analysis & Interpretation Suggestions & Recommendations Annexure Bibliography 43-44 44-48 49-50

PAGE NO
2 3 4 6 7-10 11 12-28 29-42

ACKNOWLEDGEMENT
The term paper on CONSUMER PREFERENCE ABOUT DIFFERENT BRANDED SPORTS SHOES has been given to me as part of the curriculum in 2-Years Masters Degree in Business Administration. I have tried my best to present this information as clearly as possible using basic terms that I hope will be comprehended by the widest spectrum of researchers, analysts and students for further studies. I also thankful to my friend who helped me a lot in the completion of this project.

Ashiq Aziz

EXECUTIVE SUMMARY

This project takes a look in various kinds of Merchandising activities, Market Share of different sports shoes and various Sales Promotion schemes, which are followed in the Sports shoes industry. The three major global players i.e. Reebok, Nike, and Adidas dominate the sports shoes industry in India. India is one of few battlegrounds in the world where there is neck-to-neck competition between the three. The companies claim to be in number one sport coating the data produced by two different marketing research companies. In the 1980s, Adidas sneakers became popular amongst teenagers and young men. The Adidas sneaker was popularized by the Run DMC song "My Adidas" and became a huge fashion trend. The Tapie affair the history of the company as presented by its official web site is incomplete, perhaps because it is indirectly linked to financial scandals. After a period of serious trouble.The death of Adolf Dassler's son Horst Dassler in 1987, the company was bought in 1990 by Bernard Tapie, for 1.6 billion French francs ($320 million), which Tapie borrowed. Tapie was at the time a famous specialist of rescuing bankrupt companies, a business on which he built his fortune. Nike is the world's #1 manufacturer and marketer of athletic footwear and apparel. Almost out of the blue, the company established itself as one of the world's most familiar brands during the 1980s and 1990s. As familiar as a Coke bottle or Big Mac, the Nike "swoosh" logo came to symbolize not just sports culture, but street culture, as the appeal of the star players who endorsed the brand was carried onto city streets. The approach of the new century set Nike new problems.

Trainers went (briefly) out of fashion, economic slowdown and labor problems hit Asian performance. But the group has bounced back, retaining its iron grip on the sporting apparel sector and still undisputed leader in sports-oriented street wear. Reebok is the world's third-largest maker of sneakers, athletic shoes and sports apparel. Goods are sold under the brands Reebok, Rockport and Greg Norman Collection. Reebok is also the official outfitter of the NFL and has an exclusive deal to supply NBA jerseys beginning this season. Reebok announced in July it will merge with German sporting apparel company Adidas-Salomon in a deal valued at $3.8 billion. The merger is expected to be completed by the first half of 2008 and will create the second-largest sporting goods company behind Nike with $11 billion in revenues. Adidas will maintain its corporate headquarters in Germany and its North American headquarters in Portland, OR. Paul Fireman will remain as Chief Executive Officer of Reebok International Ltd. and will continue to lead the Reebok team. Reebok will continue to operate under its name and will retain its headquarters in Canton, MA. In fiscal 2008, Reebok had net income of $192.4 million and sales of $3.7 billion.

RESEARCH OBJECTIVE
The research study tends to follow and achieve specific objectives. The objectives of this particular study are: To know the personal views of Lovely Professional University students regarding choices among various branded sport shoes. To study which branded sport shoes is mostly preferred by students as per their choices. Comparison between various branded sport shoes. Find out factor influencing the people at the time of purchasing sport shoes QUALITY, DUREBILITY, VARIETY, PRICE, And USE IN SPORT OR ANY OTHER.

RESEARCH METHOLOGY

RESEARCH METHODOLOGY Research problems: consumers behavior about the different branded sports shoes Research methodology: Exploratory method SAMPLING PLAN -

Sample Methods - Random Simple Sampling Sample size Primary data SAMPLE While deciding about the sample of research, it is required from the researchers point to pay attention to these under mentioned points: a) Sample Units: A decision has to be taken concerning a sampling unit before selecting a sample, sampling unit may be a geographical - 100 -Questionnaire

one such as state, district, village Etc. so in this research sampling unit is Lovely Professional University campus. Source of data: Data required for the study was collected through primary sources I.e. Questionnaire

INSTRUMENTS USED The tools I used is questionnaires. . METHOD OF DATA COLLECTION Actually data is of two kinds which are followinga) Primary Data: Primary data are those, which are collected afresh and for the first time and this happen to be original in character. b) Secondary Data: Secondary data are those data which have already been collected by someone else and which have already been used as per required.

LIMITATIONS OF THE STUDY

While surveying I encounter with some problems like A survey should involve a larger sample size otherwise the findings of the survey can not be generalized. But a larger sample size may increase the time and cost of collecting the primary data with the help of Questionnaire. Many of the respondents were not willing to fill the questionnaire. Another problem which I face was that students were hesitating to give information about their views freely.

Adidas
INTRODUCTION Adidas is a German sports apparel manufacturer, part of the AdidasSalomon Corporation. Adidas was named after its founder, Adolph (Adi) Dassler, who started producing shoes in the 1920s in Herzogenaurach near Nuremberg with the help of his fellow friend Cody. It registered as Adidas AG on 18 August 1949. The company's clothing and shoe designs typically include three parallel stripes of the same color, and the same motive is incorporated into Adidas' official logos. COMPETITORS Rudolf Dassler, Adies brother, founded a rival company, PUMA the chief competitors of Adidas are Puma and Nike. In August 2005, the company announced that it had made a deal to acquire rival Reebok for $3.8 billion. The acquisition would increase its market share in North America and allow it to further compete with Nike. This will propel Adidas to the number two spot in the foot apparel market behind Nike. Adidas' trademark saying is 'impossible is nothing'.

Adidas factory outlet in Herzogenaurach, Germany Teams sponsored by adidas Adidas sponsors major teams in a number of sports, especially football, rugby and tennis. American college sports teams are also sponsored. (19932001): Robert Louis-Dreyfus. He has been highly successful with managing the company until 2001. His self-admitted secret was simply copying what Nike and Reebok did. "Adidas" is simply a combination of the founder's nickname (Adi) and the first three letters of his last name (Dassler). This dispels the rumor that the letters are an acronym for "all day I dream about sports," "all day I dream about soccer," or more crudely "all day I dream about sex."

Reebok
INTRODUCTION: Reebok is the world's third-largest maker of sneakers, athletic shoes and sports apparel. Goods are sold under the brands Reebok, Rockport and Greg Norman Collection. Reebok is also the official outfitter of the NFL and has an exclusive deal to supply NBA jerseys beginning this season. Reebok announced in July it will merge with German sporting apparel company Adidas-Salomon in a deal valued at $3.8 billion. The merger is expected to be completed by the first half of 2006 and will create the second-largest sporting goods company behind Nike with $11 billion in revenues. Adidas will maintain its corporate headquarters in Germany and its North American headquarters in Portland, OR. Paul Fireman will remain as Chief Executive Officer of Reebok International Ltd. and will continue to lead the Reebok team. Reebok will continue to operate under its name and will retain its headquarters in Canton, MA. In fiscal 2004, Reebok had net income of $192.4 million and sales of $3.7 billion

Nike (US)
INTRODUCTION:
Nike is the world's #1 manufacturer and marketer of athletic footwear and apparel. Almost out of the blue, the company established itself as one of the world's most familiar brands during the 1980s and 1990s. As familiar as a Coke bottle or Big Mac, the Nike "swoosh" logo came to symbolize not just sports culture, but street culture, as the appeal of the star players who endorsed the brand was carried onto city streets. The approach of the new century set Nike new problems. Trainers went (briefly) out of fashion, economic slowdown and labour problems hit Asian performance. But the group has bounced back, retaining its iron grip on the sporting apparel sector and still undisputed leader in sports-oriented street wear.

The Ad brands Company Profile of Nike summarizes the company's history and current operations and also contains the following website links:

Data analysis and interpretation

WHICH BRAND OF SHOES DO YOU PREFER

BRAND Reebok Adidas Action Nike Others

PERCECENTAGE (%) 34 28 9 26 3

FREQUENCY 34 28 9 26 3

40 35 30 25 20 15 10 5 0

34 28 26

9 3

Reebok

Adidas Reebok Adidas

Action Action

Nike Nike Others

Others

COMMENT: most of the people prefer to wear shoes of Reebok brand

ARE YOU SATISFIED WITH THE QUALITY OF PREFERD BRAND

OPTION
Yes No

PERCENTAGE (%)
98.6 1.4

FREQUENCY
148 2

1.4, 1% Yes No 98.6, 99%

COMMENT: most of the people in surveyed region were satisfied with their brand.

ARE YOU SATISFIED WITH THE PRICE RANGE

OPTION
Yes No No comment

PERCENTAGE (%)
64 19 17

FREQUENCY
96 29 25

PERCENTAGE(%)

17% Yes No 19% 64% NO COMMENT

COMMENT: price does not seem any obstacle in the way of consumers. Most of the people were happy with given price range.

IF PRICES OF YOUR PREFERED BRAND INCREASES WILL YOU PURCHASE AGAIN

BRAND
Same brand Cheaper brand Any other brand

PERCENTAGE (%)
58 16 26

FREQUENCY
87 23 40

90 80 70 60 50 40 30 20 10 0

87 58

23

16

40 26

FREQUENCY PERCENTAGE(%) PERCENTAGE(%)

Same brand

FREQUENCY Cheaper brand Any other brand

COMMENT: Increment in price affects the trend and market of the branded sports shoe.

HOW DO YOU CONSIDER THE IMPORTANCE OF SPORTS SHOES IMPORTANCE

Comfort Price Durability Use in sports Any other

PERCENTAGE (%)
68 4 16 10 2

FREQUENCY
102 6 25 15 2

80 70 60 50 40 30 20 10 0

68

16 4 Comfort
Comfort

10 2

Price
Price

Durablity
Durablity

Use in sports

Any other

Use in sports

Any other

COMMENT: The main ground on which shoe being purchased is the quality of the shoe. This indicates the quality preference among consumers, rather than price, durability etc.

WHAT FACTORS INFLUENCE YOU TO GO FOR A PARTICULAR BRAND

INFLUENCE
Quality Price Durability Variety Any other

PERCENTAGE (%)
74 5 13 8 0

FREQUENCY
111 8 20 11 0

80 70 60 50 40 30 20 10 0

74

13 5 Quality Price
Quality Price

8 0

Durablity
Durablity

Variety
Variety

Any other

Any other

COMMENT: people in the surveyed area mostly preferred the quality of the brand instead of price and durability.

DO YOU NORMALLY SWITCH OVER THE BRAND

OPTION
Yes No

PERCENTAGE (%)
44 56

FREQUENCY
66 84

44% 56%

Yes No

COMMENT: Most of the people were not ready to switch over from their brand.

IS THERE ANY EFFECT OF ADVERTISEMENT ON SELECTION OF BRANDS

OPTION
Yes No

PERCENTAGE (%)
69 31

FREQUENCY
104 46

PERCENTAGE(%)

31% Yes No 69%

COMMENT: Advertisement plays a crucial role in the brand selection

WHAT KIND OF PROMOTIONAL TOOL YOU PREFER

OPTION
Lucky coopen Free gift Discount Buy one get one free

PERCENTAGE (%)
11 14 60 15

FREQUENCY
14 22 91 23

100 90 80 70 60 50 40 30 20 10 0

91

60

11 14 Lucky coopen

14

22

15

23

Free Gift

Discount

Buy one get one free

PERCENTAGE (%)

FREQUENCY

COMMENT: Respondents were more inclined towards the discounts Package in companies promotional tools.

WILL YOU BUY PREFERED BRAND AT LOW COST OF NEGLIGIBLE QUALITY

OPTION
Yes No

PERCENTAGE (%)
23 77

FREQUENCY
34 116

77%

23%

Yes

No

COMMENT: Most of the people do not want to leave their preferred Brand at the cost of low prices

OPTION
Yes No

PERCENTAGE (%)
52 48

FREQUENCY
79 71

IS THERE ANY IMPACT OF CELEBRITIES ON YOUR PURCHASING

42%

58%

Yes

No

COMMENT: Celebrities have a special impact on the mind of the consumers that affects the purchasing sense of consumers.

WILL YOU PURCHASE ANOTHER BRAND OF SAME QALITY WITH LESS PRICE

OPTION
Yes No

PERCENTAGE (%)
70 30

FREQUENCY
106 44

30%

70%

Yes

No

COMMENT: Consumers look more brand loyal as they are not ready to leave their brand for other brand of same weightage.

DO YOU THINK WEIGHT IS A FACTOR FOR CHOOSING A BRAND

OPTION
Yes No

PERCENTAGE (%)
83 17

FREQUENCY
125 25

17% 83%

Yes

No

COMMENTS: weight proved its importance in purchasing of the shoe. Most of the users preferred to wear lighter shoe.

Suggestions & Recommendation

Research finding Consumer reaction suggest that Nike is the market leader among all its close Counterparts in the sport shoes apparel segments. 34% market capture is still under the kitty. 28% customers are still pro adidas believer. Nike has been the major competitor for adidas.

The new stuff of the Adidas is attracting the consumers more which might led Adidas at the top spot in the pack in coming financial year

Conclusion
The term paper makes several contributions to the literature. It provides comprehensive knowledge about consumer behavior and methods of finding consumer behaviors. This paper has been made by following the real examples and shows that to adapt new trends of the market and to survive in the market, learning is must for a student.

ANNEXURE
QUESTIONNAIRE
Q.1 Do you prefer wearing sport shoes? (a) Yes Q.2 which brand of shoes you prefer? (a) Nike (c) Reebok (e) Any other (b) (b) (d) No Adidas Action

Q.3 Are you satisfied with the quality of preferred brand? (a) Yes (b) No Q.4 Are you satisfied with the price range of preferred brand? (a) Yes (b) No (c) No comment

Q.5 If the price of your preferred brand increases will you purchase again? (a) Same brand (b) Cheaper brand (c) Any other brand Q.6 how do you consider the importance of sport shoes? (a) Comfort (b) Price (c) Durability (d) Use in sport (e) Any other Q.7 what factors influence you to go for a particular brand? (a) Quality (b) Durability (c) Price (d) Variety (e) Any other Q.8 Do you normally switch over the brand? (a) Yes (b) No

Q.9 does the advertising play any role in selection of brands of shoes? (a) Yes (b) No

Q.10 what kind of promotional tool you prefer? (a) Lucky coupon (b) (c) Discount (d) .

Free gift Buy one get one free

Q.11 Are you willing to buy the preferred brand at lower price with negligible quality?

(a)

Yes

(b)

No

Q.12 is there any impact of celebrities on your purchase of sport shoes? (a) Yes (b) No Q.13 Will you purchase another brand of same quality with less price? (a) Yes (b) No Q.14 Do you think weight is a factor for choosing brand? (a) Yes (b) No

PERSONAL INFORMATIONS: Name Address : : E-mail: Age: Gender:

Phone No. : Occupation:

Date

:
Thank You.

BIBLIOGRAPHY

BOOKS:
Marketing Research By: G. C. Beri

Marketing Research By: Boyd and Stasch Marketing Management By: Philip Kotler

INTERNET:
http//:www.google.com http//:www.bambooweb.com http//:www.wikipedia.com