ACKNOWLEDGEMENT

The present work is an effort to throw some light on Marketing Strategy of Nike at Nike !n"#stries Limite"$% The work wo#l" not ha&e 'een possi'le to (ome to the present shape witho#t the a'le g#i"an(e) s#per&ision an" help to me 'y n#m'er of people% With "eep sense of gratit#"e ! a(knowle"ge the en(o#ragement an" g#i"an(e re(ei&e" 'y my organi*ational g#i"e ++++%%an" other staff mem'ers% ! (on&ey my heartf#l affe(tion to all those people who helpe" an" s#pporte" me "#ring the (o#rse) for (ompletion of my ,ro-e(t .eport% +++++%% E/EC0T!1E S0MMA.2 This marketing strategi( plan has 'een written keeping in min" the !n"ian operations of Nike !n(% 3 the glo'al sports shoe giant% !t aims first) at analy*ing the sports shoe in"#stry !n"ia an" fin"ing a pla(e in it for Nike% !t then sets o#t to "es(ri'e the target a#"ien(e for the pro"#(t range an" finally s#ggests a host of marketing strategies an" a(ti&ities that will help Nike to a(hie&e its target of 'e(oming the 45 sports shoe 'ran" in !n"ia% The plan 'egins with a 'rief o&er&iew of the pro"#(t (ategory 'eing "ealt with) namely premi#m 6#ality sports shoes% !t also "wells 'riefly on the history of the (ompany an" its (#rrent position an" a(ti&ities% The pro-e(t mo&es on to the (r#7 of the matter 3 the marketing plan to 'e followe" 'y Nike in !n"ia% 8irstly) the o'-e(ti&es 'ehin" this plan an" the (ore strategy are state"% C#stomers to 'e e&ent#ally targete" are "es(ri'e" an" (ompare" with (ompetitors9 (#stomer targets% After starting the o'-e(ti&es an" reasoning 'ehin" them) the a(t#al marketing programs are "es(ri'e" in "etail% This in(l#"es aspe(ts s#(h as pri(ing) a"&ertising) promotion) sales) (hannels) an" the (ompany we'site% S#ggestions are ma"e on ea(h an" e&ery one of these aspe(ts: impro&ements an" inno&ations are re(ommen"e"% The plan then goes on to the (#stomer analysis se(tion% The (#stomer 'ase is i"entifie" an" &ario#s segments are pointe" o#t% 1ario#s (riteria an" fa(tors ha&e 'een taken into (onsi"eration while segmenting the market% We ha&e also trie" to as(ertain why (#stomers '#y these pro"#(ts) how they (hoose) an" what fa(tors matter most when making their "e(isions%

The last few pages of this marketing plan "eal with the &ario#s ways in whi(h the plan) on(e implemente") (an 'e monitore" an" (ontrolle"

CONTENTS
S.NO. 1. 2. 3. ". '. 6. 7. -. .. !0. !!. !). !0. !". !'. !6. !7. !-. !.. )0. CONTENTS Acknowledgement Introduction Summary o data collected O#$ecti%e& Com(any (ro ile *i&&ion and +i&tory o t+e com(any ,i%er&e (roduct (ort olio Com(any an market in India Product line o t+e com(any Product de(t+ /e&earc+ met+odology and ,ata collection ,ata inter(retation *arketing &trategie& o t+e com(any Com(etitor& Com(any in%ol%ement and #ene it& ,ome&tic indu&trie& 1&+a International Ad%erti&ement ,ata collection remaining 2i#liogra(+y PAGE NO.
06 07 !0 !! !) !" !' !7 !. )0 ). 00 0! 0" 0' 06 "0 "6 '0 '!

!NT.OD0CT!ON ;ACKG.O0ND O8 T<E ,.O;LEM Sin(e the late 5=>?s) ;#siness S(hool marketing professor !tamar Simonson has looke" for ways to #n"erstan" how (ons#mers make (hoi(es% M#(h of his work "e'#nks the a((epte" theory that gi&ing (ons#mers what they want an" making a profit are the most 'asi( prin(iples of marketing% C#stomers may not know what they want) an" se(on"@ g#essing them (an 'e e7pensi&e) says the professor who tea(hes M;A an" ,hD marketing an" (ons#mer "e(ision@making (o#rses% !n Simonson9s wor"s) The 'enefits an" (osts of fitting in"i&i"#al (#stomer preferen(e are more (omple7 an" less "eterministi( than has 'een ass#me"%$ That9s 'e(a#se (#stomer preferen(es are often ill@"efine" an" s#s(epti'le to &ario#s infl#en(es) an" in many (ases) (#stomers ha&e poor insight into their preferen(es%$ !n one of his re(ent papers) Simonson ta(kles the iss#e of one@to@one marketing an" mass (#stomi*ation% S#pporters of these marketing approa(hes ha&e s#ggeste" that learning what (#stomers want an" gi&ing them e7a(tly what they want will (reate (#stomer loyalty an" an ins#rmo#nta'le 'arrier to (ompetition% !n an e7ample taken to the e7treme in the A??A mo&ie Minority .eport) Tom Cr#ise9s (hara(ter r#ns thro#gh a shopping mall past talking 'ill'oar"s that re(ogni*e him 'y name an" #rge him to '#y pro"#(ts he ha" earlier e7presse" an interest in s#(h as -eans an" .ay@;ans) the #ltimate in personali*e" a"&ertising% ;#t Simonson has this to sayB The fa(t that (ons#mer preferen(es are often f#**y) #nsta'le) an" manip#lata'le is #nlikely to (hange% So) the effe(ti&eness of metho"s to gi&e (#stomers e7a(tly what they Csay theyD want has 'een grossly e7aggerate"%$ <is take on the long@hel" ass#mption that in"i&i"#al marketing will s#pplant targete" marketing is not so fast%$ !n st#"ies) he has learne" that e&en when (#stomers ha&e well@"efine" preferen(es an" re(ei&e offers that fit those preferen(es) it is far from (ertain that the response to s#(h offers will (onsistently 'e more fa&ora'le than those "ire(te" at larger market segments%$ !t9s all psy(hology% Cons#mers with well@"efine" preferen(es may 'e skepti(al that a marketer (o#l" mat(h e7pe(tations% Those who "on9t know what they want may not e&er see the fit with what the seller wants them to '#y% So) in"i&i"#ali*e" offers "epen" on (#stomers9 preferen(es E: how the offer was e7ten"e" E: an" on tr#st% Effe(ti&e in"i&i"#al marketing re6#ires not only an #n"erstan"ing of in"i&i"#al preferen(es an" mat(hing offers to those preferen(es) '#t also a thoro#gh familiarity with the &ario#s fa(tors that impa(t (#stomers9 responses)$ Simonson writes% This is a tall or"er) one that some (ompanies ha&e 'een a'le to fill) at least to some e7tent% 8or e7ample) Ama*on keeps tra(k of (#stomers9 p#r(hases an" s#ggests other 'ooks they might like% Dell '#il"s (omp#ters from mass@ma"e parts to (#stomers9 spe(ifi(ations% ;#t Simonson arg#es some (ompanies (an take the (on(ept too far) like the C#stom 8oot (hain of shoe stores that took "etaile" meas#rements an" spe(ifi(ations from ea(h (#stomer to "esign one@of@a@kin" shoes% C#stom 8oot "i"n9t take into a((o#nt that some (#stomers were p#t off 'y the in"i&i"#ali*e" attention) Simonson says) an" felt o'ligate" to '#y the shoes

'e(a#se the store went to so m#(h tro#'le% They often "i"n9t (ome 'a(k% So knowing only the (#stomer preferen(es is not eno#gh% !t is re6#ire" to #n"erstan" other aspe(ts of (#stomer 'eha&ior% Kipping this in min") present st#"y will fin" o#t an" analy*e (ons#mer 'eha&ior of Nike shoes with referen(e to la"ies segment% A;O0T T<E N!KE !ND0ST.2 !n sport) &is#al a(#ity an" prote(tion (an mean the "ifferen(e 'etween winning an" losing% Light (on"itions ha&e a "ramati( effe(t on how the h#man eye per(ei&es an") s#'se6#ently how the 'o"y rea(ts an" performs @@ in the s#n glinting o&er the #pper "e(k) shallow (ontrast on a p#tting green) or 6#i(kly a"-#sting from sha"ows to light on a tennis (o#rt or mo#ntain 'ike single tra(k% Nike knows that in athleti( (ompetition) e&en small a"&antages are (riti(al to performan(e% Nike has spent the last eight years e7ploring the h#man eye to #n"erstan" the s(ien(e of &ision in the "e&elopment of the new Nike Ma7Sight Sport@Tint Conta(t Lens) a&aila'le A#g#st A??F% W<AT !T !S Nike Ma7Sight) "e&elope" in partnership with ;a#s(h E Lom') is a tinte" soft (onta(t lens that 'eha&es like s#nglasses) re"#(ing glare an" filtering o#t =FG of 01A an" 01; an" more than =?G of 'l#e light% ;#t 'e(a#se the lens rests "ire(tly on the eye) there9s &irt#ally no "istortion as with stan"ar" s#nglasses% Athletes get the same (lear &iew at all angles% ,l#s) Nike Ma7Sight eliminates the en&ironmental effe(ts that plag#e s#nglasses like fogging) s(rat(hing) a""itional weight) or nosepie(es an" frames to o'str#(t &ision% There9s no o'str#(tion from the e"ge of the lens) the frame or the nosepie(e) 'e(a#se they "on9t e7ist% An" there are no press#re points an" no slippage% Ma7 Sight also eliminates light leakage) re"#(ing the nee" to s6#int) allowing the eye to rela7 an" perform more nat#rally% Nike Ma7Sight is) in effe(t) one giant &is#al sweet spot% Nike Ma7sight <OW T<E2 WO.K Nike9s patente" Nike Ma7Sight Light Ar(hite(t#reH sele(ti&ely alters spe(ifi( wa&elengths of light within the &is#al spe(tr#m to enhan(e key elements in sport% The athlete gets (risp) (lear &ision witho#t anything getting in their way% ;y remo&ing most of the 'l#e light) (ontrast an" (larity are enhan(e" I a "e(i"e" a"&antage for any (ompetitor% 8or sports not (on"#(i&e to eyewear) s#(h as golf) tennis an" so((er) athletes will see marke" impro&ement) e&en on "ays where the s#n9s not at its 'rightest%

Nike Ma7Sight pro&i"es thro#gh@an"@thro#gh tinting C#nlike (osmeti(ally tinte" lensesD) so there9s no 'en"ing or s(attering of light% ,l#s there9s limite" in(i"ental light or peripheral fli(kering (reeping aro#n" the si"es) as with s#nglasses% Athletes teste" in Nike Ma7Sight lenses fo#n" they s6#inte" less) were a'le to rela7 more) an" ha" e7(eptional &iews of (onto#rs an" mo&ement% Mar(o Matera**i of !taly9s !nter Milan foot'all (l#' an" ;altimore Orioles se(on" 'aseman ;rian .o'erts are among the pro athletes wearing Nike Ma7Sight% !t has 'een a lot of f#n to start the season this hot)$ sai" .o'erts early in the ML; season% !n fa(t) he 'e(ame one of the first tr#e fans of Nike Ma7Sight after impressi&e initial res#lts% D#ring a spring "aytime game) .o'erts sai") ! wore the lenses an" went A for J% They are so awesome%$ With Nike Ma7Sight) there9s minimal s6#inting in 'right light) an" 6#i(ker &is#al "efinition when going from 'right light to sha"ows% Wearers will also "is(o&er a game@"ay 'enefit 3 the look% !t makes the eye look "istin(t) the large@p#pil effe(t)$ says Alan .ei(how) Nike 1ision Cons#ltant% !t looks (ompetiti&e%$ .OLL O1E. ,<OTOS 8O. A MA/S!G<T LENSE S!M0LAT!ON T<E WEA. Nike Ma7Sight is a K?@"ay lens) tho#gh most athletes will wear them sele(ti&ely an" for short "#rations% Lenses (ome in si7@pa(k pa(kaging% Nike Ma7Sight is a&aila'le with or witho#t a (orre(tion) there'y making it a((essi'le to athletes whether they wear (onta(ts or not% T<E <!STO.2 Nike 'egan e7ploring the Nike Ma7 Sight te(hnology in 5==L) (on"#(ting an initial (lini(al pro-e(t) then s#'se6#ent resear(h pro-e(ts #sing (ollegiate athletes% Oregon9s ,a(ifi( 0ni&ersity 'ase'all players were the first athletes to #n"ergo testing% Coa(h Greg ;ra"ley re6#este" that he 'e allowe" to try them 'efore his players% <e9" ne&er worn (onta(ts)$ says Dr% .ei(how% <e took two pit(hes an" t#rne" aro#n" an" sai") M!9&e ne&er seen a 'all that "istin(t an" (lear% ,#t them on any'o"y who wants them%9 !ND0ST.2 O1E.1!EW ;ill ;owerman sai" this (o#ple of "e(a"es ago% The g#y was right% !t "efines how he &iewe" the worl") an" it "efines how Nike p#rs#es its "estiny% O#rs is a lang#age of sports) a #ni&ersally #n"erstoo" le7i(on of passion an" (ompetition% A lot has happene" at Nike in the K? years sin(e we entere" the in"#stry) most of it goo") some of it "ownright em'arrassing% ;#t thro#gh it all) we remain totally fo(#se" on (reating performan(e opport#nities for e&eryone who wo#l" 'enefit) an" offering empowering messages for e&eryone who wo#l" listen% We feel l#(ky to ha&e a gen#ine) altr#isti( reason to 'eB the ser&i(e of h#man potential% ThatNs the great 'enefit of sports) an" weNre gla" to 'e in the mi""le of it%

What starte" with a han"shake 'etween two r#nning geeks in sleepy E#gene) Oregon) are now the worl"Ns most (ompetiti&e sports an" 8itness Company% The Worl" <ea"6#arters is in ;ea&erton) Oregon% The ,a(ifi( Northwest is NikeNs hometown) '#t like so many am'itio#s so#ls) we ha&e e7pan"e" o#r hori*ons to e&ery (orner of the worl"% Nike employs aro#n" AK)??? people) an" e&ery one of them is signifi(ant to o#r mission of 'ringing inspiration an" inno&ation to e&ery athlete in the worl"% Along the way Nike -oine" #p with some great partner (ompanies that help e7ten" o#r rea(h within an" 'eyon" sports%

Cole <aan offers (as#al l#7#ry footwear an" a((essories o#t of New 2ork City an" 2armo#th) Maine% ;a#er Nike <o(key) 'ase" in Montreal) O#e'e() is the worl"Ns lea"ing man#fa(t#rer of ho(key e6#ipment an" a wholly owne" s#'si"iary of Nike) !n(% Nike partnere" with <#rley !nternational) a premi#m teen lifestyle 'ran" fo#n"e" 'y A?@ year in"#stry &eteran ;o' <#rley 'ase" in Costa Mesa) California% !n A??K) Nike (omplete" the a(6#isition of Con&erse) the glo'ally re(ogni*e" footwear 'ran" with nearly a (ent#ry of sports heritage) an" home of the perennially pop#lar Ch#(k Taylor All@Star an" Pa(k ,#r(ell footwear% E7eter ;ran"s Gro#pB !n A#g#st A??J) Nike (reate" the E7eter ;ran"s Gro#p) a wholly owne" s#'si"iary) "e"i(ate" to '#il"ing athleti( footwear an" apparel 'ran"s for the &al#e retail (hannel% This portfolio of 'ran"s in(l#"es the Offi(ial Starter ,roperties LLC an" Offi(ial Starter LLC whi(h are the sole owners an" li(ensors of the Starter) Team Starter an" Asphalt 'ran" names as well as master li(ensee of the Sha6 an" D#nkman 'ran"s) a line of athleti( apparel) footwear an" a((essory pro"#(ts for the &al#e retail (hannel% Separate '#siness #nits within the Nike 'ran" in(l#"e The Por"anQP#mpman AK 'ran" an" Nike Golf% As small as we feel) the Nike family is a fairly &ast enterprise% We operate on si7 (ontinents% O#r s#ppliers) shippers) retailers an" ser&i(e pro&i"ers employ (lose to 5 million people% The "i&ersity inherent in s#(h si*e is helping Nike e&ol&e its role as a glo'al (ompany% We see a 'igger pi(t#re to"ay than when we starte") one that in(l#"es '#il"ing s#staina'le '#siness with so#n" la'or pra(ti(es% We retain the *eal of yo#th yet a(t on o#r responsi'ilities as a glo'al (orporate (iti*en% !f yo# ha&e a 'o"y) yo# are an athlete% An" as long as there are athletes) there will 'e Nike%

,.OD0CT T.END ;o&ine skin was 'y far the most preferre" leather material) followe" 'y goatQki"Qlam'Qsheep skin an" (ro(o"ile skin% .espon"ents o&erwhelmingly preferre" the (olor 'la(k an") to a lesser e7tent) "ark 'rown% 8or han"'agsQ'rief(ases) pop#lar (olors in(l#"e" light 'rown) white an" re"% Cons#mer Segments with the ;iggest Spen"ing ,ower Male professionals) managers an" e7e(#ti&es are the segment with the 'iggest spen"ing power for now an" in the (oming three years% Other ma-or (ons#mer segments in(l#"e male offi(e workers: sole proprietorsQ'#siness owners: female offi(e workers: an" female professionals) managers an" e7e(#ti&es% The Competiti&eness of <ong Kong ;ran"sQS#ppliers of Leather Cons#mer Goo"s% Most retailers (onsi"er <ong Kong 'ran"s to 'e either &ery (ompetiti&e or 6#ite (ompetiti&e in 'oth high@en" an" mi"@range segments) '#t less (ompetiti&e in the low@ en" segment% The (ompetiti&eness of <ong Kong 'ran"s mainly rests on their pro"#(t styleQ"esign an" 6#ality) with most respon"ents pi(king those as the ma-or reasons 'ehin" the attra(ti&eness of <ong Kong 'ran"s in the high@en" an" mi"@range segments respe(ti&ely% ,.OD0CT ,.O8!LE Apart from "eli&ering a pair of (omforta'le sports shoes Nike also pro&i"es a n#m'er of &al#e@a""e" feat#res with its pro"#(ts% The feat#res that are a part of e&ery Nike sports shoe are as follows% <igh ,erforman(e Sports ShoesB Nike has patente" the Air$ system an" has ma"e it into a reg#lar feat#re in most of its mo"els% Many mo"els feat#re an air po(ket in the shoe that re"#(es the weight of the shoe an" re"#(es press#re on the heels% ;esi"es the o&erall "esign an" (ompa(tness of the shoes ha&e ma"e it a fa&orite of many professional athletes aro#n" the worl"% ComfortB Nike shoes are renowne" all o&er the worl" for the (omfort they pro&i"e% Well pa""e" an" (#shione") they pro&i"e a tremen"o#s le&el of (omfort to the wearer an" re"#(e the strain to his feet while playing% LightweightB This attri'#te is in line with the two "es(ri'e" a'o&e% A lightweight shoe pro&i"es greater mo'ility an" eases the press#re on the feet of the wearer% D#ra'ilityB ,eople p#r(hasing a pair of shoes at s#(h a high pri(e often feel that they ha&e ma"e an in&estment% They wo#l" o'&io#sly want to see their shoes last a long time% To pro&e this point we "raw the e7ample of the a#thors of this marketing plan% All of #s own a pair of Nike9s an" ha&e 'een wearing them for well o&er two years 3 a sym'ol of the "#ra'ility of Nike shoes%

StyleB Nike9s "esigns are (onsi"ere" to 'e the most stylish in the in"#stry an" 'eat all others as far as looks are (on(erne"% Attra(ti&ely pa(kage") it is a "elight to 'ring a pair home% A"" to this the Swoosh$ 3 the most re(ogni*a'le sym'ol in sports an" yo# ha&e a pro"#(t that wo#l" gi&e the #ser a "efinite sense of pri"e% Nike shoes also (ome with a g#arantee (ar" that ena'les the owner to ret#rn it in (ase of man#fa(t#ring "efe(ts% <owe&er) owing to the fa(t that the (ompany implements stri(t 6#ality (ontrol meas#res) (oming a(ross a "efe(ti&e pair in a store are a rarity% The most re(ent a""itions to their line are the Nike R%? an" Nike S; shoes) "esigne" for skate'oar"ing% Nike has re(ently intro"#(e" (ri(ket shoes) (alle" Air Soom 2orker) "esigne" to 'e K?G lighter than their (ompetitorsN%T Nike positions its pro"#(ts in s#(h a way as to try to appeal to a Uyo#thf#l%%%%materialisti( (row"U%TFV !t is positione" as a premi#m performan(e 'ran"% N!KE R%O N!KE S;

.ESEA.C< MET<ODOLOG2 .esear(h (omprise "efining an" re"efining pro'lems) form#lating hypothesis or s#ggeste" sol#tions: (olle(ting) organi*ing an" e&al#ating "ata: making "e"#(tions an" rea(hing (on(l#sions: an" at last (aref#lly testing the (on(l#sions to "etermine whether they fit the form#lating <ypothesis% !n short) the sear(h for Knowle"ge thro#gh O'-e(ti&e an" Systemati( metho" of fin"ing sol#tions to a pro'lem is .esear(h% .ESEA.C< O;PECT!1ES To st#"y the tastes) preferen(es) an" '#ying 'eha&ior of (ons#mers in (ase of footwear of ;ata% To analy*e '#ying 'eha&ior of la"ies segment of (ons#mers% To re(ommen" strategies to Nike to in(rease sales in la"ies segment% The main o'-e(ti&es of this st#"y areB Working of !ns#ran(e ,lans SWOT analysis of the pro"#(t sol" Comparati&e st#"y with the (ompetitors

.ESEA.C< DES!GN T2,E O8 .ESEA.C<B @ Des(ripti&e resear(h Des(ripti&e resear(h in(l#"es S#r&eys an" fa(t@fin"ing en6#iries of "ifferent kin"s% The main (hara(teristi( of this metho" is that the resear(her has no (ontrol o&er the &aria'les: he (an only report what has happene" or what is happening% DATA SO0.CES There are two types of "ata% So#r(e of primary "ata for the present st#"y is (olle(te" thro#gh 6#estionnaire an" answere" 'y (ons#mers of Nike shoes% The se(on"ary "ata is (olle(te" from -o#rnals) 'ooks an" thro#gh !nternet sear(h% ,.!MA.2 DATA The "ata that is (olle(te" first han" 'y someone spe(ifi(ally for the p#rpose of fa(ilitating the st#"y is known as primary "ata% So in this resear(h the "ata is (olle(te" from respon"ents thro#gh 6#estionnaire% SECONDA.2 DATA 8or the (ompany information ! ha" #se" se(on"ary "ata like 'ro(h#res) we' site of the (ompany et(% The Metho" #se" 'y me is S#r&ey Metho" as the resear(h "one is Des(ripti&e .esear(h% .ESEA.C< !NST.0MENTS Sele(te" instr#ment for Data Colle(tion for S#r&ey is O#estionnaire% O0EST!ONNA!.E DES!GN 8O.M0LAT!ON 0n"er this metho") list of 6#estions pertaining to the s#r&ey are prepare" for marketing staff of (ons#mers of Nike shoes% O#estionnaire has str#(t#re" type 6#estions as well as #nstr#(t#re" type 6#estions% Str#(t#re" o'-e(ti&e type 6#estions are prepare" for the respon"ents with fi7e" response (ategories% Some of the 6#estions are of m#ltiple@(hoi(e type% The 6#estions ha&e more than one alternati&e% O#estionnaireB @ A 6#estionnaire (onsists of a set of 6#estions presente" to respon"ent for their answers% !t (an 'e Close" En"e" or Open En"e" Open En"e"B @ Allows respon"ents to answer in their own wor"s E are "iffi(#lt to !nterpret an" Ta'#late% Close En"e"B @ ,re@spe(ify all the possi'le answers E are easy to !nterpret an" Ta'#late% T2,ES O8 O0EST!ON !NCL0DEDB D!C<OTOMO0S O0EST!ONS Whi(h has only two answers 2es$ or No$W

M0LT!,LE C<O!CE O0EST!ONS Where respon"ent is offere" more than two (hoi(es% !M,O.TANCE SCALE A s(ale that rates the importan(e of some attri'#te% .AT!NG SCALE A s(ale that rates some attri'#te from highly satisfie" $ to highly #nsatisfie" &ery ineffi(ient$ to &ery effi(ient$ an"

SAM,L!NG 0N!TB @ Who is to 'e s#r&eye"W The marketing resear(her m#st "efine the target pop#lation that will 'e sample"% The sample 0nit taken 'y me: General p#'li( of "ifferent age gro#p) "ifferent gen"er an" "ifferent profession E/TENTB@ Where the s#r&ey sho#l" 'e (arrie" o#tW ! ha&e (o&ere" entire resi"ential area of Delhi (ity for the s#r&ey T!ME 8.AMEB@ When the s#r&ey sho#l" 'e (on"#(te"W ! (on"#(te" my s#r&ey for >weeks from 5?th may to 5?th P#ly SAM,L!NG 8.AMEB@ The so#r(e from whi(h the sample is "rawn SAM,L!NG TEC<N!O0EB @ <ow sho#l" the respon"ent 'e (hosenW !n the ,ro-e(t sampling is "one on 'asis of ,ro'a'ility sampling% Among the pro'a'ility sampling "esign the sampling "esign (hosen is stratifie" ran"om sampling% ;e(a#se in this s#r&ey ! ha" stratifie" the sample in "ifferent age gro#p) "ifferent gen"er an" "ifferent profession SAM,LE S!SE Cons#mers of shoes) F? nos STE,S 8OLLOWED !N COM,LET!NG T<E ST0D2 CiD Li'raries at CaD !n"ian Co#n(il for Applie" E(onomi( .esear(h C!CAE.D) C'D !n"ian !nstit#te of Te(hnology) C!!TD Delhi) C(D Co#n(il of s(ientifi( an" in"#strial .esear(h CCS!.D C"D ,<D (ham'er of (ommer(e) are &isite"% Management Q marketing 'ooks) -o#rnals are (ons#lte"%

CiiD !nternet sites (ontaining information on Nike shoes E marketing are 'rowse"% CiiiD Sample s#r&ey was (on"#(te"% Ci&D Data was thoro#ghly (he(ke" for error% DATA ,.OCESS!NG MET<ODOLOG2 CiD On(e the primary "ata ha&e 'een (olle(te") they are C!D e"ite" 3 inspe(te") (orre(te" an" mo"ifie"% CiiD Ta'#lation 3 'ring similar "ata together an" totaling them in meaningf#l (ategories% O#estionnaires are e"ite" 'oth in the fiel" an" later in home% 8iel" e"iting took pla(e -#st often the inter&iew% Generally e"iting is re6#ire" for open type of 6#estions% ;rief notes or sym'ols are fre6#ently #se" "#ring the inter&iew to initially re(or" the inter&iewer9s response sin(e it was not "esira'le to interr#pt the flow with lengthy note taking% Then imme"iately after the inter&iew) 'rief notes are respon"ent% The responses are thoro#ghly (he(ke" in home for in(orre(t) in(onse6#ential or (ontra"i(tions (ategories are "e&elope" only often the replies has 'een re&iewe"% This re&iew pro&i"e" a feel for the pattern of answers an" th#s "etermine what (ategories 'est represent the answers% The (olle(te" "ata are pla(e" into an or"er% ,er(entages of respon"ents answere" similarly are (al(#late" an" pla(e" in a ta'le% Then this is interprete"% This in&ol&e" "rawing (on(l#sion from the gathere" "ata% !nterpretation (hanges the new information immerging from the analysis into information that is pertinent or rele&ant to the st#"y% CONCL0S!ON WAS D.AWN ;ASED ON T<E S0.1E2 8!ND!NGS 8inally re(ommen"ation was ma"e to impro&e the sales strategy of Nike shoes to in(rease the sales &ol#me in la"ies segment% SAM,LE DES!GN T<E ;AS!S O8 SAM,L!NGB @ Cons#mers of Nike shoes are (hosen ran"omly) so that #n'iase") representati&e sample may 'e o'taine"% L!M!TAT!ONS O8 .ESEA.C< The geographi(al area was &ery m#(h limite" to resi"ential area E so the res#lts are not parti(#larly refle(tion of the (#rrent 'eha&ior% ;!ASES AND NON@COO,E.AT!ON O8 T<E .ES,ONDENTS% The (olle(te" "ata are pla(e" into an or"er% ,er(entages of respon"ents answere" similarly are (al(#late" an" pla(e" in a ta'le% Then this is interprete"% This in&ol&e" "rawing (on(l#sion from the gathere" "ata% !nterpretation (hanges the new information immerging from the analysis into information that is pertinent or rele&ant to the st#"y% D#e to limite" time perio" an" (onstraine" working ho#rs for most of the respon"ents) the answers at times were &ag#e eno#gh to 'e ignore"%

 Most of the people in !n"ia take their Nike Shoes in the perio" pre(e"ing Mar(h E so the response to initial (onta(ts were not all en(o#raging an" that has 'een the primary reason in the ina'ility to 6#antify the res#lts large eno#gh so as to "e"#(e any rele&ant o#t(omes% COM,AN2 ,.O8!LE N!KE !ND0ST.!ES LTD% 3 A COM,AN2 ,.O8!LE Nike !n"ia Lt" C;!LD is !n"iaMs largest footwear (ompany% Nike first esta'lishe" itself in !n"ia in 5=K5 an" (ommen(e" man#fa(t#ring shoes in ;atanagar in 5=KR% The (ompany has its <ea"6#arters in Kolkata an" man#fa(t#res o&er KK million pairs per year in fi&e plants lo(ate" in ;atanagar CWest ;engalD) 8ari"a'a" C<aryanaD) ;angalore CKarnatakaD) ,atna C;iharD) <os#r CTamil Na"#D% !t se(#res its leather s#pply from two tanneries in Mokamehghat C;iharD an" ;atanagar CWest ;engalD% !t has a "istri'#tion network of o&er 5)F?? retail stores an" AL wholesale "epots pro&i"e e7(ellent a((ess to (ons#mers an" wholesale (#stomers thro#gho#t !n"ia% As on De(em'er K5) A??R) the Cana"ian parent ha" a F5 per (ent stake while instit#tional hol"ing was a'o#t 5K per (ent% .ECENT DE1ELO,MENTS Nike !n"ia has sai" that it9s 8ari"a'a" an" Mokamehghat #nits are 'eing taken o&er 'y 8ashion Shoe ,ri&ate Lt" an" ;DCL Enterprises ,&t Lt") respe(ti&ely% The (ompany is also ena'ling the '#y 'a(k pro&ision in its Arti(les of asso(iation to ena'le '#y 'a(k of shares% The assets an" lia'ilities of 'oth the #nits will 'e transferre" to these (ompanies an" shares will 'e offere" in the agree" ratio to the e7isting sharehol"ers of Nike !n"ia Lt" on a re(or" "ate) whi(h will 'e fi7e" 'y the Cal(#tta <igh Co#rt% While retail sales ha&e in(rease" 'oth in &al#e an" &ol#me) wholesale sales ha&e "e(line" "#e to restri(tion of s#pplies as a means to re(o&er (#stomersMo#tstan"ing% General re(ession an" sl#ggish market (on"itions in the in"#stry also ha&e ha" a "ire(t impa(t on lower sales an" profita'ility% .esistan(e of (ons#mers to pri(e rises in pop#lar &ol#me pro"#(ts as well as "is(o#nts to (lear slow@mo&ing sto(ks an" #n"er #tili*ation of pro"#(tion (apa(ity a"&ersely affe(te" the operational res#lts% The lo(ko#t "e(lare" at the ,eenya fa(tory on O(to'er 5) A??L "#e to serio#s in"#strial relation pro'lems an" non@(omplian(e with the tripartite settlement has 'een with"rawn% The footwear man#fa(t#re" in this fa(tory) whi(h was shifte" to the (ompanyMs other fa(tories an" asso(iate" man#fa(t#rers) will now 'e gra"#ally pro"#(e" within the fa(tory% The (ommen(ement of pro"#(tion from this fa(tory will help in re@(ooping the minimal loss 'eing s#ffere" 'y the (ompany from this lo(ko#t% !n Simonson9s wor"s) The 'enefits an" (osts of fitting in"i&i"#al (#stomer preferen(e are more (omple7 an" less "eterministi( than has 'een ass#me"%$ That9s 'e(a#se (#stomer preferen(es are often ill@"efine" an" s#s(epti'le to &ario#s infl#en(es) an" in many (ases) (#stomers ha&e poor insight into their preferen(es%$ !n one of his re(ent papers) Simonson ta(kles the iss#e of one@to@one marketing an" mass (#stomi*ation%

S#pporters of these marketing approa(hes ha&e s#ggeste" that learning what (#stomers want an" gi&ing them e7a(tly what they want will (reate (#stomer loyalty an" an ins#rmo#nta'le 'arrier to (ompetition% ;#t Simonson has this to sayB The fa(t that (ons#mer preferen(es are often f#**y) #nsta'le) an" manip#lata'le is #nlikely to (hange% So) the effe(ti&eness of metho"s to gi&e (#stomers e7a(tly what they Csay theyD want has 'een grossly e7aggerate"%$ <is take on the long@hel" ass#mption that in"i&i"#al marketing will s#pplant targete" marketing is not so fast%$ !n st#"ies) he has learne" that e&en when (#stomers ha&e well@"efine" preferen(es an" re(ei&e offers that fit those preferen(es) it is far from (ertain that the response to s#(h offers will (onsistently 'e more fa&ora'le than those "ire(te" at larger market segments%$ !t9s all psy(hology% Cons#mers with well@"efine" preferen(es may 'e skepti(al that a marketer (o#l" mat(h e7pe(tations% Those who "on9t know what they want may not e&er see the fit with what the seller wants them to '#y% So) in"i&i"#ali*e" offers "epen" on (#stomers9 preferen(es E: how the offer was e7ten"e" E: an" on tr#st% Effe(ti&e in"i&i"#al marketing re6#ires not only an #n"erstan"ing of in"i&i"#al preferen(es an" mat(hing offers to those preferen(es) '#t also a thoro#gh familiarity with the &ario#s fa(tors that impa(t (#stomers9 responses)$ Simonson writes% This is a tall or"er) one that some (ompanies ha&e 'een a'le to fill) at least to some e7tent% 8or e7ample) Ama*on keeps tra(k of (#stomers9 p#r(hases an" s#ggests other 'ooks they might like% Dell '#il"s (omp#ters from mass@ma"e parts to (#stomers9 spe(ifi(ations% ;#t Simonson arg#es some (ompanies (an take the (on(ept too far) like the C#stom 8oot (hain of shoe stores that took "etaile" meas#rements an" spe(ifi(ations from ea(h (#stomer to "esign one@of@a@kin" shoes% C#stom 8oot "i"n9t take into a((o#nt that some (#stomers were p#t off 'y the in"i&i"#ali*e" attention) Simonson says) an" felt o'ligate" to '#y the shoes 'e(a#se the store went to so m#(h tro#'le% They often "i"n9t (ome 'a(k% So knowing only the (#stomer preferen(es is not eno#gh% !t is re6#ire" to #n"erstan" other aspe(ts of (#stomer 'eha&ior% Kipping this in min") present st#"y will fin" o#t an" analy*e (ons#mer 'eha&ior of Nike shoes with referen(e to la"ies segment% 80T0.E ,LAN The management says that it is not a&erse to o#tso#r(ing if it worke" o#t (heaper% !t is also open to the i"ea of importing shoes @ mostly from China @ if it works o#t (heaper% Nike an" .ee'ok !n"ia Company ha&e anno#n(e" an agreement to foray into retailing partnership for sale of .ee'ok an" .o(kport footwear in Nike o#tlets% The partnership entails retailing a range of sports shoes for walking) r#nning) tennis an" training for personal fitness an" sports ranging 'etween .s =??@A)F??% An attra(ti&e &al#ation (ompare" to its peers is the main trigger for the s(rip% ;esi"es) the (ompany9s aggressi&e fo(#s on retailing an" re&amping of '#siness Ca "i&ision into shoes an" apparelsD is also helping sentiment for the s(rip% ,lans are afoot to start selling apparel in !n"ia ma"e 'y the -oint &ent#re North Star% There9s talk that the (ompany is planning on a &ol#ntary retirement s(heme C1.SD to (#t (osts%

8or the thir" 6#arter en"e" K? Septem'er A??L) Nike !n"ia re"#(e" its losses to .s F%R> (rore C.s >%F5 (roreD on a =%AG in(rease in net profit to .s 5FJ%AL (rore C.s 5J5%AR (roreD% Despite re"#(ing its losses for the 6#arter) Nike !n"ia has) o&er the last few 6#arters) 'een (ontin#o#sly re(or"ing weak performan(es as a res#lt of an o&erall slow"own in the in"#stry "#e to lower (ons#mer spen"ing% !n(reasing "omesti( (ompetition) parti(#larly from the #norgani*e" se(tor) has also 'een ero"ing into the (ompany9s market share% The (ompany is fin"ing it "iffi(#lt to maintain its market share in a highly pri(e@ sensiti&e !n"ian market) "espite ha&ing strong 'ran" re(all% =LG of the (ompany9s re&en#es are from the "omesti( market while the remain"er is from e7ports% Nike !n"ia is the 'iggest player in the !n"ian shoe market% Nike !n"ia9s ma-or pro'lems in(l#"e its high (ost of pro"#(tion an" low emphasis on marketing% The (ompany may 'e a'le to a""ress the first pro'lem thro#gh o#tso#r(ing pro"#(ts% ;ata9s 'ran" image has 'een restri(te" to that of a (ompany that emphasi*es on #tilitarian pro"#(ts more than tren"y ones% C#stomers feel the (ompany is la(king in inno&ation% <en(e) their preferen(e has shifte" to other lo(al 'ran"s% Nike !n"ia has a large marketing network with o&er 5)F?? showrooms) AL wholesale "epots an" eight retail "istri'#tion (enters a(ross the (o#ntry% ;esi"es) there is a network of K?? e7(l#si&e wholesalers ser&i(ing AF)??? "ealers all o&er the (o#ntry% <owe&er) in spite of this an" the li(ense to sell other 'ran"s like Nike) <#sh ,#ppies an" Lotto) Nike has not 'een a'le to impro&e sales (onsistently% The re(ent rise in sales "#ring the thir" 6#arter en"e" Septem'er A??R (an 'e attri'#te" to the festi&e season% .e(ently) it also entere" into a retailing tie@#p for Lee Cooper shoes% Nike !n"ia has also 'een trying to fo(#s on aggressi&e marketing of its pro"#(t% The (ompany has 'een going thro#gh a perio" of transition for the past one year% With the e7pansion of the retail in"#stry in New Delhi an" M#m'ai) the (ompany has re(ently "e(i"e" to shift its marketing operations to Delhi in or"er to pro&i"e &al#e shopping for its (#stomers% <owe&er) the man#fa(t#ring a(ti&ity an" the registere" offi(e will (ontin#e at Kolkata% Nike !n"ia has plans to in&est in sophisti(ate" ma(hinery to retain its ni(he pla(e in man#fa(t#ring% The (ompany has p#t a fresh fo(#s to its retail '#siness% The (ompany has "e(i"e" to (leanse its wholesale operation 'y '#il"ing relationships with (re"it@ worthy '#yers% !t is to the (ompany9s (re"it that it has lately o&erha#le" its marketing set@#p into a fo#r@ tier retail str#(t#re that will 'e sto(ke" with pro"#(ts mat(hing the area9s (#stomer profile% A Nike o#tlet in an #p market pla(e will offer a "istin(tly "ifferent range of footwear from another in the s#'#r's%

At the top of the fo#r@tier str#(t#re will 'e international stores sto(king 'ran"s like Nike an" .ee'ok% Ne7t will 'e (ity stores) lo(ate" in #p market areas an" (atering to mi""le an" high@in(ome gro#ps% The (ompany has i"entifie" the 'ran"s ,ower) North Star) ;#''le g#mmers) Marie Claire an" <#sh ,#ppies for the top en" of the market% Thir" in line will 'e family stores at (ommer(ial lo(ations "isplaying 'asi( an" mi"@range footwear% At the 'ottom will 'e 'a*aar stores that will 'asi(ally aim at "ri&ing &ol#me sales at lower pri(e points% The management of Nike !n"ia is taking ma-or steps in terms of impro&ing market penetration) fo(#s on stores (onfig#ration) "istri'#tion logisti(s) 'etter in"#strial relations an" o&erhea" rationali*ation% La#n(hing of new pro"#(ts always remaine" at the (enter stage of the (ompany9s operations% At the same time) with the opening #p of the e(onomy) more an" more goo"s will 'e importe" from China% This may signifi(antly affe(t Nike !n"ia9s prospe(ts #nless it manages to wean away (#stomers with a "rasti( (#t in (osts% Alternati&ely) like other !n"ian man#fa(t#rers) e&en Nike may (onsi"er relo(ating its man#fa(t#ring 'ases in China% <owe&er) it is not that easy a task to #n"ertake% Nike !n"ia) the F5G s#'si"iary of Toronto@'ase" Nike Shoe Organi*ation) remains the 'iggest player in the !n"ian shoe market) tho#gh its share in footfalls has 'een "e(reasing o&er the years% Now in a "etermine" 'i" to stra""le a(ross all pro"#(t an" pri(e points) Nike !n"ia has "e(i"e" to restr#(t#re its 5)K??@o#tlet strong retail '#siness "i&ision along spe(ifi( (#stomer segments into ;a*aar) 8amily) an" City an" 8lagship stores% Nike !n"ia has "e(i"e" to appoint 'ran" managers for ea(h pro"#(t gro#p in a newfo#n" aggression to ta(kle "win"ling sales% Ea(h of these managers assiste" 'y a "e"i(ate" team wo#l" 'e like a 'ran" (hampion responsi'le for pro(#rement) pro"#(tion) a"&ertisement) promotion an" re@s#pply% Nike !n"ia has rope" in Ogil&y E Mother for "e&ising its festi&e season a"&ertising) si"e@stepping PWT) its in(#m'ent agen(y% The -o' in&ol&es "e&eloping spe(ial (omm#ni(ation "ire(te" towar"s the festi&al season shoppers% Nike !n"ia Lt" C;!LD is !n"ia9s largest footwear (ompany selling o&er R? Mn pairs per year in !n"ia) 0SA) 0K) E#rope) Mi""le East an" 8ar East% ;!L has a market share of R?G in leather pro"#(ts an" L?G in (an&as shoes% The footwear in"#stry in !n"ia is highly fragmente" an" "ominate" 'y the #norgani*e" se(tor% The in"#stry si*e is aro#n" .s LF ;n an" is growing at aro#n" 5?G ann#ally% !t (ompetes with !n"ian players s#(h as Li'erty Shoes) ,hoeni7 !nternational) Mir*a Tanners) Tatas) A(tion Shoes an" Lakhani Shoes an" glo'al players like A"i"as) .ee'ok an" Nike% A((essories an" garments (ontri'#te footwear sales a((o#nt for more than =RG of sales while the 'alan(e% The t#rno&er 'reak #p is as follows 3

 ,ro"#(ts 1ol#me CGD 1al#e CGD .#''er an" Can&as F?B K? Leather A= BFL ,lasti( A5B = G.OWT< D.!1E.S The (ompany has a &ery (omprehensi&e "istri'#tion network whi(h (omprises its own an" fran(hise stores% !t has 5F?? showrooms) AF wholesale "epots an" > "istri'#tion (enters% ,O,0LA. ;.ANDS Nike owns 'ran"s like <#sh ,#ppies) Signor) Marie Claire ,ower) San"ak) <awai) Na#ghty 'oy an" Am'assa"or% !t also "istri'#tes other 'ran"s s#(h as Nike an" Lotto% 8o(#s on mi""le@(lass an" #pper (lass Nike will (ontin#e to fo(#s on mi""le an" #pper (lass (#stomers% !t is intro"#(ing M'#"get stores9 whi(h will help (#stomers to i"entify with the 'ran"% !t is also in(reasing fo(#s on r#ral thr#st for &ol#me growth in the low@ pri(e" footwear segment% .!SK AND CONCE.N Lifting of 6#antitati&e restri(tion on import of footwear will lea" to the market 'eing floo"e" 'y imports% La'or iss#es ha&e always 'othere" ;!L an" this res#lte" in "isr#ption of man#fa(t#ring a(ti&ities on n#mero#s o((asions% Competition is hotting #p in the "omesti( market "#e to pop#lar 'ran"s s#(h as Gaiton"e) .e" Tape) Lot#s ;awa an" Tatas% These 'ran"s are gaining market share espe(ially in the premi#m segment an" in this segment ;!L has no signifi(ant presen(e% Latest .es#lts Sales for OK 82A??? in(rease" 'y F%FG yoy to .s5%L'n% profits "roppe" 'y =?G yoy to .sK%> Mn "#e to lower operating margins an" higher "epre(iation an" interest% Depre(iation in(rease" 'y R%KG yoy to .s KL Mn while interest (ost in(rease" 'y =%KG yoy to .s AK%J Mn% Operating margins "roppe" 'y K%KG "#e to in(rease in inp#t (ost% The ,eenya plant has not (ommen(e" operations "espite lifting #p of the lo(k o#t sin(e P#ly K) A??L% 1AL0AT!ON ;!L9s long@term s#((ess is "epen"ent on the how la'o#r iss#e is ta(kle" an" the fle7i'ility) whi(h it (an a"opt to meet threat of imports an" (ompetition from lo(al footwear (ompanies% Long term in&estors with a two@year in&estment hori*on (an a((#m#late the sto(k at (#rrent le&els% !t is also in(reasing fo(#s on r#ral thr#st for &ol#me growth in the low@pri(e" footwear segment% Lifting of 6#antitati&e restri(tion on import of footwear will lea" to the market 'eing floo"e" 'y imports%

La'or iss#es ha&e always 'othere" ;!L an" this res#lte" in "isr#ption of man#fa(t#ring a(ti&ities on n#mero#s o((asions% Competition is hotting #p in the "omesti( market "#e to pop#lar 'ran"s s#(h as Gaiton"e) .e" Tape) Lot#s ;awa an" Tatas% These 'ran"s are gaining market share espe(ially in the premi#m segment an" in this segment ;!L has no signifi(ant presen(e% Sales for O5 C2A??5 "e(rease" marginally 'y ?%RG yoy to .s 5F=?%L mn% There was a net loss of .s K?%A mn as against a profit of .s K=%R mn in the (orrespon"ing perio" of the pre&io#s year% The loss is "#e to lower operating margins an" higher interest% ;!L9s long@term s#((ess is "epen"ent on the la'or iss#e an" the fle7i'ility) whi(h it (an a"opt to meet threat of imports an" (ompetition from lo(al footwear (ompanies% Long term in&estors with a two@year in&estment hori*on (an a((#m#late the sto(k at (#rrent le&els% 8!NANC!AL <!G<L!G<TS C!n .s MillionD A???5A C5AD 5===5A C5AD 5==>5A C5AD O5A??5?K O5A????K Sales L)K5F%L? L)5?K%=? R)KFK%A? 5F=?%L 5R??%= G Growth A%=> 55%>A C?%RD Net ,rofit K?J%R? AJA%R? 5RR%K? CK?%AD K=%R G Growth AF%FR JF%>> C5LRD E,SC.sD F%=? J%L? K%A? K%?> G Growth AF%FK JR%>> .atios A???5A C5AD 5===5A C5AD 5==>5A C5AD OK????= OK===?= O,MCGD =%LL =%?> L%5R 5%?= R%= N,MCGD J%5R K%JA A%RA A%F .OECGD >%=F L%JJ F%K5 Nike #n"erstate" = month losses @ ;rief 8inan(ials Cin .s% Mn%DDetaile" O#arterly ,erio" en"ing CmonthsDK?@Sep@A??L C=DK5@De(@A??R C5ADK5@De(@A??R C5AD Net sales J=>?%A?RJR5%5LL5LA%=5 Other !n(omeJA%5?RK%R5RF%A5 Total !n(omeF?AA%K?RFAJ%LLLAK>%5A Cost of goo"s sol"J=LJ%L?RJL5%L=L?F5%LR O,;D!TJL%R?FA%=>5>R%KR ,AT@55L%A?@LJ%5?K=%>? Gross ;lo(k@A5=5%?LA?RA%AR E6#ity (apital@F5J%AAF5J%AA E,S C.s%D@@5%JJ?%LL D,S C.s%D@?%???%LF ;1 C.s%D@KL%ALK>%L5 ,QE range C7D@?%? @ ?%??%? @ ?%?

De't Q E6#ity C7D@?%KA?%AR Operating margin CG of O!D ?%=?%>A%R Net margin CG of O!D@A%K@5%5?%F As on K? P#ne A??L) the p#'li() instit#tions an" foreign 'o"ies hel" K5%AKG) 5K%=5G an" ?%5RG stake in the (ompany) respe(ti&ely L!TE.AT0.E .E1!EW The st#"y of (ons#mer 'eha&ior has e&ol&e" sin(e the !nformation ,ro(essing Mo"el C;ettman) 5=L=D ass#me" that the in"i&i"#al is logi(al in hisQher '#ying pro(ess% This mo"el was (riti(i*e" 'e(a#se it faile" to treat "ifferent (ons#mption phenomena moti&ate" 'y sym'oli( meanings C<ol'rook an" <irs(hman) 5=>AD% !n"i&i"#als are not always looking for effi(ien(y an" e(onomy) '#t also for "istra(tion) aestheti() e7pression) et(% C;oy" an" Le&y) 5=RKD% Calling for a 'roa"ening of theoreti(al frameworks of (ons#mer 'eha&ior) many a#thors plea"e" in fa&or of the st#"y of all (ons#mption forms C<ol'rook) 5=>RD) 'eing inspire" 'y E#ropean semi logy an" Ameri(an semioti( CLe&y) 5=F=) 5=RK) 5=>5: <irs(hman) 5=>?: Kehret@War") Pohnson an" Lo#ie) 5=>F: Mi(k) 5=>R: <ol'rook) 5=>R: O9Sha#ghnessy an" <ol'rook) 5=>>: NXth) 5=>>: Stern) 5=>>: Grafton@Small an" Linstea") 5=>=D% These are the st#"y of signs) meanings an" pro"#(tion of sym'ols% 8antasy) emotion an" pleasant aspe(ts of (ons#mption were then ta(kle" from an e7periential point of &iew% The E7periential 1iew is a phenomenologi(al perspe(ti&e that per(ei&es (ons#mption as a primary state of (ons(io#sness ha&ing a &ariety of sym'oli( meanings) responses an" he"onist (riteria C<ol'rook an" <irs(hman) 5=>A: Olsha&sky an" Gran'ois) 5=L=D% The 'asis of the tra"itional !nformation ,ro(essing Mo"el is the optimi*ation of the #tility of a pro"#(t #n"er the 'asis of a #tilitarian e&al#ation of its tangi'le (hara(teristi(s% Ne&ertheless) it negle(ts emotional aspe(ts% On the other han") the E7periential 1iew lea&es o#t "ifferent fa(tors s#(h as e(onomi( (on"itions) e7pe(tations) some elements of the marketing mi7 Cpri(e) "istri'#tionD) per(ei&e" risk an" (onfli(ts) '#t mostly the so(ial infl#en(e of the (ons#mers9 referen(e gro#ps C<ol'rook an" <irs(hman) 5=>A: ;#siness Central E#rope) 5==JD whi(h is the aim of the Sym'oli( !ntera(tionism ,erspe(ti&e% A(6#isition) possession an" (ons#mption are a(ti&ities taking pla(e in a pro(ess of impressions (reation or i"entity management whi(h is) a((or"ing to ;elk C5=L>D) an intera(ti&e pro(ess (on(erning 'oth the image of goo"s (ons#me" an" that of the in"i&i"#als (ons#ming them% The Sym'oli( !ntera(tionism ,erspe(ti&e "eals with the relationship 'etween (ons#mers an" the pro"#(ts they (ons#me) an" s#ggests that a signifi(ant proportion of (ons#mption 'eha&iors (onsist of so(ial 'eha&iors) an" &i(e &ersa CSolomon) 5=>KD% This lea"s #s to (onsi"er the importan(e of so(iali*ation pro(esses Cfamily) referen(e gro#psD thro#gh whi(h in"i&i"#als learn the meanings of sym'ols an" those of (ons#mption% With the aforementione" meanings 'eing negotiate" an" '#ilt thro#gh intera(tions with others) (ons#mption is not only an in"i&i"#al a(ti&ity) '#t also a so(ial pro(ess of goo"s "efinition CGallant an" Kleinman) 5=>KD% Sin(e in"i&i"#als are often moti&ate" to a(6#ire pro"#(ts a((or"ing to what they mean to them an" to mem'ers of their so(ial referen(e gro#ps CLeigh an" Ga'el) 5==AD) their 'eha&ior is s#'-e(t to the press#res of (#lt#ral norms an" the e7pe(tations of so(iali*ation instit#tions r#les s#(h as those (oming from family an" other referen(e gro#ps C8a'er)

O9G#inn an" M(Carthy) 5=>L: Engel) ;la(kwell an" Miniar") 5==KD% Th#s) Sym'oli( !ntera(tionism ,erspe(ti&e (onsi"ers the h#man spirit as f#n"amentally so(ial) an" "epen"ent on share" sym'ols% The sym'ols 'eing generate" at a glo'al le&el CGeert*) 5=LK: Solomon) 5=>K: M(Cra(ken) 5=>R) 5=>>: Leigh an" Ga'el) 5==AD) the Sym'oli( !ntera(tionism ,erspe(ti&e a((epts as pre(ept the fa(t that so(iety an" its (#lt#re pre(e"e e&ery in"i&i"#al a(tion) an" that a (#lt#ral (onsens#s res#lts from intera(tions) (omm#ni(ation) an" negotiation 'etween so(ial a(tors CCharon) 5=>=D% !f) at a (on(ept#al le&el) the (ons#mption goo" 'e(omes an instr#ment of (omm#ni(ation) at an operational le&el) image &aria'les may 'e regar"e" as the intangi'le attri'#tes of the pro"#(t that (arry (#lt#ral an" so(ial meanings% A((or"ing to Eri(kson) Pohansson an" Chao C5=>JD) an image &aria'le is "efine" as some aspe(t of the pro"#(t that is "istin(t from its physi(al (hara(teristi(s '#t that is ne&ertheless i"entifie" with the pro"#(t$% The image &aria'les emerge from fo#r (ogniti&e representations in"i&i"#als ha&e of their en&ironmentB the sym'olism of a"&ertising) the (ele'rity en"orsement) the 'ran") an" the (o#ntry of origin of the pro"#(t% The ma"e@in is (onsi"ere" 'y Di(hter C5=RAD as the fifth element of the marketing mi7) an" is "efine" as the (o#ntry where are lo(ate" the (orporate hea"6#arters of the organi*ation "oing the marketing of the pro"#(t or the 'ran" CPohansson) Do#glas an" Nonaka) 5=>FD% The (o#ntry of origin (arries a rhetori( that infl#en(es (ons#mers9 pre(on(eptions towar"s the pro"#(ts of a (o#ntry% !ts meaning (an 'e (on(ei&e" as an in"i(ation ser&ing as a 'asis of e&al#ation C;ilkey an" Nes) 5=>AD) when one (onsi"ers a pro"#(t as a '#n"le of information% Conse6#ently) a((or"ing to Kaynak an" Ca&#sgil C5=>KD) the images of a foreign (o#ntry that are forme" 'y (ons#mers are ma"e of (ogniti&e) affe(ti&e an" 'eha&ioral (omponents% The first one represents the per(ei&e" (hara(teristi(s of the (o#ntry% The se(on" one (on(erns the appre(iation or not of those (hara(teristi(s) an" the thir" one (orrespon"s to the a(tions a'o#t the (o#ntry that the (ons#mer feels are appropriate% A ten"en(y to e&al#ate positi&ely the lo(al pro"#(tion (ompare" to importe" pro"#(tion) an" 'iases in fa&or of in"#striali*e" (o#ntries ha&e 'een fo#n" in pre&io#s st#"ies C;ilkey an" Nes) 5=>A: Cor"ell) 5==AD% This "oes not mean the (ons#mer will not '#y the pro"#(t) '#t rather that he is not in(line" to "o so CS(hooler) 5=L5D% When entering foreign markets) sellers often fa(e 6#otas) tariffs) an" non@tariff 'arriers% !n a""ition) they may fa(e an intangi'le 'arrier in the form of (ons#mer 'ias on the 'asis of pro"#(t origin$ CS(hooler) 5=L5D% The informational &al#e of the (o#ntry of origin was also fo#n" to &ary a((or"ing to the le&el of in&ol&ement of the (ons#mer in p#r(hasing the pro"#(t an" the presen(e of other (#es s#(h as 'ran" name) g#arantee an" pri(e CAhme" an" "9Asto#s) 5==KD% !n a re(ently p#'lishe" meta@analysis of (o#ntry@of@origin effe(ts) ,eterson an" Poli'ert C5==FD (on(l#"e that the a&erage effe(t si*e is lower C?%5=D for p#r(hase intention) higher C?%K?D for 6#alityQrelia'ility per(eptions an" (onte7t "epen"ent% More spe(ifi(ally) they fo#n" that the (hara(teristi(s of the st#"y Cresear(h "esign) type of respon"ents) st#"y (#es) sample si*e) stim#l#s (onte7t et(%D infl#en(e the relati&e effe(t of (o#ntry@of@origin to a lesser "egree for 6#alityQrelia'ility per(eptions than for p#r(hase intention% <owe&er) the

type of respon"ents Cst#"ents) (ons#mers or '#sinesspeopleD ha" no infl#en(e on 6#alityQrelia'ility per(eptions% Stanfor" GS; marketing professor !tamar Simonson an" .an Ki&et*) an assistant professor at Col#m'ia 0ni&ersity) aske" a gro#p of 5=F Col#m'ia st#"ents to "o: eat a lot of s#shi%,arti(ipants were offere" a Ufre6#ent "inerU program that wo#l" rewar" them for their patronage at &ario#s #ni&ersity "ining lo(ations an" gi&en a (ar" that wo#l" tra(k their p#r(hases% They were ran"omly assigne" to one of two gro#ps those in the UlowU re6#irement gro#p were tol" they wo#l" ha&e to p#r(hase 5A san"wi(hes to get two free mo&ie ti(kets) whereas those in the UhighU re6#irement gro#p were tol" they wo#l" ha&e to p#r(hase 5A san"wi(hes an" 5A or"ers of s#shi to get two free mo&ie ti(kets% So) the se(on" gro#p ha" to "o m#(h more to re(ei&e the same rewar"% Ki&et* an" Simonson also aske" parti(ipants how m#(h they like" s#shi relati&e to the typi(al st#"ent% The res#ltW St#"ents who like" s#shi were m#(h more likely to -oin the Ufre6#ent "inerU program that re6#ire" them to p#r(hase 'oth 5A san"wi(hes an" 5A or"ers of s#shi% U!t shows a (ommon mistake that (ons#mers make E if they see an offer that seems to fit them 'etter than other (ons#mers) for e7ample) a program that re6#ires s#shi@lo&ers to eat s#shi that fit (ompletely (olors their assessment of how attra(ti&e the offer is)U Simonson says% UAs a res#lt) 'y (reating what appears like personal fit) marketers (an attra(t (ons#mers to fre6#en(y programs an" many other promotional offers%U Ki&et* an" Simonson repli(ate" these fin"ings regar"ing infl#en(es on parti(ipation in fre6#en(y) or loyalty) programs in st#"ies with tra&elers inter&iewe" at "omesti( airports%The s#shi st#"y is among a n#m'er of st#"ies Simonson has 'een (on"#(ting sin(e the late 5=>?s a'o#t how (ons#mers make (hoi(es% M#(h of his work "e'#nks the a((epte" theory that gi&ing (ons#mers what they want an" making a profit are the most 'asi( prin(iples of marketing% The theme that per&a"es SimonsonNs work is that (#stomers may not know what they want an" se(on"@g#essing them (an 'e e7pensi&e% !n his wor"s) The 'enefits an" (osts of fitting in"i&i"#al (#stomer preferen(e are more (omple7 an" less "eterministi( than has 'een ass#me"%U ThatNs 'e(a#se) Simonson says) U(#stomer preferen(es are often ill@ "efine" an" s#s(epti'le to &ario#s infl#en(es) an" in many (ases) (#stomers ha&e poor insight into their preferen(es%U !n another re(ent paper) Simonson ta(kles the iss#e of one@to@one marketing an" mass (#stomi*ation% S#pporters of these marketing approa(hes ha&e s#ggeste" that learning what (#stomers want an" gi&ing them e7a(tly what they want will (reate (#stomer loyalty an" an ins#rmo#nta'le 'arrier to (ompetition% !n an e7ample taken to the e7treme in the A??L mo&ie Minority .eport) Tom Cr#iseNs (hara(ter An"erson r#ns thro#gh a shopping mall past talking 'ill'oar"s that re(ogni*e him 'y name an" #rge him to '#y pro"#(ts he has e7presse" interest in s#(h as -eans an" .ay@;ans: the #ltimate in personali*e" a"&ertising% ;#t Simonson has this to sayB UThe fa(t that (ons#mer preferen(es are often f#**y) #nsta'le) an" manip#lata'le is #nlikely to (hange% So) the effe(ti&eness of metho"s to gi&e (#stomers e7a(tly what they Csay theyD want has 'een grossly e7aggerate"%U <is take on the long@hel" ass#mption that in"i&i"#al marketing will s#pplant targete" marketing is Unot so fast%U ThatNs 'e(a#se (ons#mers are &ery

"iffi(#lt to fig#re o#t) s(ien(e fi(tion an" te(hnology notwithstan"ing% U8#rthermore) e&en when (#stomers ha&e well@"efine" preferen(es an" re(ei&e offers that fit those preferen(es) it is far from (ertain that the response to s#(h offers will (onsistently 'e more fa&ora'le than those "ire(te" at larger market segments%U !tNs all psy(hology% Cons#mers with well@"efine" preferen(es may 'e skepti(al that a marketer (o#l" mat(h e7pe(tations% Those who "onNt know what they want may not e&er see the fit with what the seller wants them to '#y% So) in"i&i"#ali*e" offers "epen" on (#stomersN preferen(es: how the offer was e7ten"e" E an" on tr#st% UEffe(ti&e in"i&i"#al marketing re6#ires not only an #n"erstan"ing of in"i&i"#al preferen(es an" mat(hing offers to those preferen(es) '#t also a thoro#gh familiarity with the &ario#s fa(tors that impa(t (#stomersN responses)U he writes% This is a tall or"er) one that some (ompanies ha&e 'een a'le to fill at least to some e7tent% 8or e7ample) Ama*on keeps tra(k of (#stomers9 p#r(hases an" s#ggests other 'ooks they might like% Dell '#il"s (omp#ters from mass@ma"e parts to (#stomersN spe(ifi(ations% ;#t Simonson arg#es some (ompanies (an take the (on(ept too far) like the C#stom 8oot (hain of shoe stores that took "etaile" meas#rements an" spe(ifi(ations from ea(h (#stomer to "esign one@of@a@kin" shoes% Simonson arg#es that C#stom 8oot "i"nNt take into a((o#nt that some (#stomers were p#t off 'y the in"i&i"#ali*e" attention an" felt o'ligate" to '#y the shoes 'e(a#se the store went to so m#(h tro#'le% They often "i"nNt (ome 'a(k% !n"ee") an !nternet sear(h pro"#(es no We'site% Simonson) who has re(ei&e" many prestigio#s awar"s for his resear(h on (ons#mer 'eha&ior an" marketing) tea(hes M;A an" ,h%D% marketing an" (ons#mer "e(ision@ making (o#rses% The loyalty program arti(le is slate" for p#'li(ation in the Po#rnal of Marketing .esear(h this year% Online (#stomi*ation gi&es (ons#mers the opport#nity to (hoose (hara(teristi(s they want in a pro"#(t when they shop for it online% Many (ompanies are looking at online (#stomi*ation as the f#t#re of online '#siness Panis Crow) Kansas State 0ni&ersity marketing instr#(tor) resear(he" how people make (hoi(es on the !nternet% She re(ently st#"ie" (ons#mers in an online en&ironment an" their a'ility to (#stomi*e se&eral pro"#(ts @ pi**a) shoes) an" ele(troni( "e&i(es% Crow sai" that her st#"y pose" two 6#estions for respon"entsB first) how "iffi(#lt is it to (#stomi*e a pro"#(t) an" se(on"ly) how likely is the person to p#r(hase the pro"#(t he or she has (#stomi*e"W All parti(ipants in the st#"y (hose to (#stomi*e pro"#(ts% !n terms of (#stomers9 likelihoo" to p#r(hase) a greater n#m'er of (#stomers ma"e p#r(hase "e(isions when there are more options to (hoose) she sai"% <owe&er) it was slightly more "iffi(#lt when more feat#res were offere"% She (reate" a we'site where people (o#l" (#stomi*e pro"#(ts to their in"i&i"#al preferen(es an" nee"s% Crow sele(te" three generi( pro"#(tsB pi**a) shoes) an" a ,ersonal Digital Assistant C,DAD% Thirty@one (ollege st#"ents took part in the st#"y%

USt#"ents (o#l" (#stomi*e the three pro"#(ts) an" ! pro&i"e" a "rop@"own 'o7 on the site with attri'#tes to (hoose from)U she e7plaine"% Cons#mers (o#l" (li(k on a "rop@ "own 'o7 to (#stomi*e a pro"#(t they wo#l" want to p#r(hase) she sai"% She fo#n" that more people relie" on the "efa#lt (hoi(es rather than sele(ting other (hoi(es that were offere"% She sai") some resear(h s#ggests that many people "o not want to p#t a lot of effort into p#r(hase "e(isions% UA lot of times) people may not ha&e preferen(es alrea"y in min")U she sai"% When (ons#mers ha&e the (han(e to (reate preferen(es) the 6#estion is whether they rely on pre&io#s preferen(es or if they "e&elop new ones) she sai"% !n the f#t#re) Crow says she will 'e st#"ying strategies that (ons#mers go thro#gh "#ring p#r(hase "e(isions% U! will 'e st#"ying "e(ision pro(esses to "e&elop (omp#ter ai"s that (o#l" help the (ons#mer rea(h their p#r(hase "e(ision)U she sai"% Altho#gh her (#rrent pro-e(t in&ol&es analy*ing the (ons#mer 'eha&ior of (ollege st#"ents in an online en&ironment) in f#t#re pro-e(ts she plans to analy*e other "emographi( gro#ps%$ C#stomi*ation will 'e a key '#siness opport#nity in the f#t#re for '#sinesses online or in more typi(al shopping en&ironments)U Crow sai"% She hopes her resear(h will help (ons#mers in making p#r(hase "e(isions an" help '#sinesses "etermine pro"#(ts to offer an" how to offer them% <ong Kong (ompanies) in(l#"ing leather (ons#mer goo"s s#ppliers) ha&e shown a growing interest in tapping the mainlan" (ons#mer market after ChinaNs a((ession to the Worl" Tra"e Organi*ation an" gra"#al opening of its "omesti( market% 8or <ong Kong (ompanies targeting this &ast market) a goo" #n"erstan"ing of the 'eha&ior of mainlan" (ons#mers is ne(essary in or"er to form#late an effe(ti&e an" s#ita'le market strategy% !n &iew of this) the <KTDC (on"#(te" a s#r&ey st#"y in fo#r ma-or mainlan" (ities in 8e'r#ary A??L% The st#"y was (ompose" of two interlo(king s#r&eys% The first s#r&ey Cs#r&ey on shoppersD s#((essf#lly inter&iewe" a total of 5)??? shoppers of leather (ons#mer goo"s in fo#r ma-or (ities) namely ;ei-ing C;PD) Cheng"# CCDD) G#ang*ho# CGSD an" Shanghai CS<D% The se(on" s#r&ey Cs#r&ey on retailersD inter&iewe" managersQoffi(ers@in@(harge of ma-or "epartment stores in these fo#r (ities% The s#r&ey st#"y analyses leather (ons#mer goo"s in terms of (ons#mer 'eha&ior) the (ompetiti&eness of <ong Kong 'ran"s an" the (ons#mer segments with the greatest 'iggest spen"ing power% The main s#r&ey fin"ings are as followsB

CONS0ME. ;E<A1!O. Shopping lo(ations) Department stores were the most preferre" type of retailers) followe" 'y o#tlets in shopping malls an" (hain stores% ,ro"#(t &ariety) g#arantee" 6#ality) 'ran" (hoi(e) pri(e) ser&i(es an" store en&ironment were (ite" as the ma-or reasons for &isiting a leather (ons#mer goo"s store%

S<O,,!NG T!ME Thirty@eight per(ent of respon"ents &isite" leather (ons#mer goo"s shops at least on(e a month% Shopping "#ring weeken"s is (ommon% Other pop#lar shopping o((asions in(l#"e National Day C5st O(to'erD) Chinese New 2ear CPan#aryQ8e'r#aryD) New 2earNs Day CPan#aryD an" La'o#r Day C5st MayD% MA.KET!NG C<ANNELS ,romotional a(ti&ities in shopping malls an" "epartment stores are the most pop#lar promotional an" sales a(ti&ities) followe" 'y "is(o#ntQpri(e re"#(tion) T1 (ommer(ials) "is(o#nt (o#pons) promotional stan"s) e7hi'itions) '#y@one@ Cor moreD gets@one@free% ,0.C<AS!NG ,OWE. On a&erage) respon"ents owne" J%A pairs of shoes) 5%A pie(es of wallets) 5%K pie(es of 'elts an" 5%K pie(es of han"'agsQ'rief(ases% O&er the past 5A months) an a&erage respon"entNs spen"ing on leather (ons#mer goo"s was as followsB @ ShoesB .M; F=L CtotalD .M; KA> Cper pairD @ WalletB .M; AAR CtotalD an" .M; 5=K Cper pie(eD @ ;eltB .M; AA? CtotalD an" .M; 5=J Cper pie(eD @ <an"'agQ'rief(aseB .M; JLR CtotalD an" .M; KF= Cper pie(eD SELECT!ON C.!TE.!A When (hoosing leather (ons#mer goo"s) pro"#(t 6#ality stoo" o#t as the prin(ipal (onsi"eration for respon"ents) followe" 'y pro"#(t material) (raftsmanship) styleQ"esign) pri(e an" 'ran"% ,O,0LA. ;.ANDS Most respon"ents (onsi"ere" 'ran"s important%

J,S O8 N!KE Nike9s J,s (omprise" of the following approa(hes to pri(ing) "istri'#tion) a"&ertising an" promotion) an" (#stomer ser&i(eB ,ri(ingB Nike9s pri(ing is "esigne" to 'e (ompetiti&e to the other fashion shoe retailers% The pri(ing is 'ase" on the 'asis of premi#m segment as target (#stomers% Nike as a 'ran" (omman"s high premi#m% ,la(eB Nike shoes are "istri'#te" to M#lti ;ran" store front an" the e7(l#si&e Nike stores a(ross (o#ntries% While this ne(essitates a se(on" trip for the (#stomer to (ome an" pi(k #p the shoes) it allows Nike to offer a m#(h wi"er sele(tion than any of the (ompetition%

,romotionB Lo(ation) targete" a"&ertising in the newspaper an" strategi( allian(es ser&es as the fo#n"ation of Nike a"&ertising an" promotion effort% The athletes an" other famo#s sports personalities are always taken as 'ran" am'assa"ors% They form the prime '#il"ing 'lo(ks of their portion strategy% ,ro"#(tB The pro"#(t range of Nike (omprise of shoes) sports wear) wat(hes et(% !ts pro"#(t history 'egan with long "istan(e r#nning shoes in 5=RK% C,ast 5L yearsB Air Por"an 'asket'all shoesD% Wi"e range of shoes) apparel an" e6#ipment% 8or e7ampleB Nike Oregon Digital S#per Wat(h Nike ,resto Cee Digital Me"i#m Wat(h Nike ,resto Cee Digital Small Wat(h Nike .on Analog Wat(h Nike Tria7 5? .eg#lar Wat(h Nike Tria7 Armore" !! Analog S#per Wat(h Nike WomenNs !mara 8it Digital Wat(h SWOT ANAL2S!S SWOT ANAL2S!S N!KE) !NC% ST.ENGT<S Nike is a &ery (ompetiti&e organi*ation% ,hil Knight C8o#n"er an" CEOD is often 6#ote" as saying that N;#siness is war witho#t '#llets%N Nike has a healthy "islike of is (ompetitors% At the Atlanta Olympi(s) .ee'ok went to the e7pense of sponsoring the games% Nike "i" not% <owe&er Nike sponsore" the top athletes an" gaine" &al#a'le (o&erage% Nike has no fa(tories% !t "oes not tie #p (ash in '#il"ings an" man#fa(t#ring workers% This makes a &ery lean organi*ation% Nike is strong at resear(h an" "e&elopment) as is e&i"en(e" 'y its e&ol&ing an" inno&ati&e pro"#(t range% They then man#fa(t#re where&er they (an pro"#(e high 6#ality pro"#(t at the lowest possi'le pri(e% !f pri(es rise) an" pro"#(ts (an 'e ma"e more (heaply elsewhere Cto the same or 'etter spe(ifi(ationD) Nike will mo&e pro"#(tion% Nike is a glo'al 'ran"% !t is the n#m'er one sports 'ran" in the Worl"% !ts famo#s NSwooshN is instantly re(ogni*a'le) an" ,hil Knight e&en has it tattooe" on his ankle% WEAKNESSES The organi*ation "oes ha&e a "i&ersifie" range of sports pro"#(ts% <owe&er) the in(ome of the '#siness is still hea&ily "epen"ent #pon its share of the footwear market% This may lea&e it &#lnera'le if for any reason its market share ero"es% The retail se(tor is &ery pri(e sensiti&e% Nike "oes ha&e its own retailer in Nike Town% <owe&er) most of its in(ome is "eri&e" from selling into retailers% .etailers ten" to offer a &ery similar e7perien(e to the (ons#mer% Can yo# tell one sports retailer from anotherW

So margins ten" to get s6#ee*e" as retailers try to pass some of the low pri(e (ompetition press#re onto Nike% O,,O.T0N!T!ES ,ro"#(t "e&elopment offers Nike many opport#nities% The 'ran" is fier(ely "efen"e" 'y its owners whom tr#ly 'elie&e that Nike is not a fashion 'ran"% <owe&er) like it or not) (ons#mers that wear Nike pro"#(t "o not always '#y it to parti(ipate in sport% Some wo#l" arg#e that in yo#th (#lt#re espe(ially) Nike is a fashion 'ran"% This (reates its own opport#nities) sin(e pro"#(t (o#l" 'e(ome #nfashiona'le 'efore it wears o#t i%e% (ons#mers nee" to repla(e shoes% There is also the opport#nity to "e&elop pro"#(ts s#(h as sport wear) s#nglasses an" -ewellery% S#(h high &al#e items "o ten" to ha&e asso(iate" with them) high profits% The '#siness (o#l" also 'e "e&elope" internationally) '#il"ing #pon its strong glo'al 'ran" re(ognition% There are many markets that ha&e the "isposa'le in(ome to spen" on high &al#e sports goo"s% 8or e7ample) emerging markets s#(h as China an" !n"ia ha&e a new ri(her generation of (ons#mers% There are also glo'al marketing e&ents that (an 'e #tili*e" to s#pport the 'ran" s#(h as the Worl" C#p Cso((erD an" The Olympi(s% T<.EATS Nike is e7pose" to the international nat#re of tra"e% !t '#ys an" sells in "ifferent (#rren(ies an" so (osts an" margins are not sta'le o&er long perio"s of time% S#(h an e7pos#re (o#l" mean that Nike may 'e man#fa(t#ring an"Qor selling at a loss% This is an iss#e that fa(es all glo'al 'ran"s% The market for sports shoes an" garments is &ery (ompetiti&e% The mo"el "e&elope" 'y ,hil Knight in his Stamfor" ;#siness S(hool "ays Chigh &al#e 'ran"e" pro"#(t man#fa(t#re" at a low (ostD is now (ommonly #se" an" to an e7tent is no longer a 'asis for s#staina'le (ompetiti&e a"&antage% Competitors are "e&eloping alternati&e 'ran"s to take away NikeNs market share% As "is(#sse" a'o&e in weaknesses) the retail se(tor is 'e(oming pri(e (ompetiti&e% This #ltimately means that (ons#mers are shopping aro#n" for a 'etter "eal% So if one store (harges a pri(e for a pair of sports shoes) the (ons#mer (o#l" go to the store along the street to (ompare pri(es for the e7a(tly the same item) an" '#y the (heaper of the two% S#(h (ons#mer pri(e sensiti&ity is a potential e7ternal threat to Nike% DATA ANAL2S!S 5% Demography of respon"ents

ANAL2S!SB !t was o'ser&e" that the ma-ority of the respon"ents (onsist of professional from &ario#s fiel"s like engineers) software professionals) working e7e(#ti&e et(% who effe(ti&e form K>G of o#r "ata'ase% While KRG were st#"ents from &ario#s fiel"s% Others (onstit#te "esigners an" athletes et(% the f#rther st#"y is (arrie" on the '#ying 'eha&ior of the a'o&e mentione" (ategories of (ons#mer) whi(h shows that o#r (ons#mer is well e"#(ate" an" is &ery well informe" a'o#t the pro"#(t%

A% Cons#mer9s in(ome le&el an" spen"ing (apa(ity on shoes

ANAL2S!SB !n the s#r&ey (on"#(te" a "ire(t relation 'etween the in(ome le&el an" the spen"ing (apa(ity was o'ser&e"% Also it was fo#n" that st#"ents were spen"ing in the range of .s 5??? 3 .s K??? as (ompare" to the working (lass professionals who were rea"y to spen" 'etween .s K??? 3 .s R???) sin(e they ha&e higher spen"ing power 'e(a#se of higher in(ome le&els% S<O,,!NG SEASON ANAL2S!SB Amongst the st#"ent an" the professional it was fo#n" the (ons#mer '#ying ;E<A1!O. "oes not (hange with respe(t to the seasons an" o((asion as most of the (ons#mer wo#l" like to '#y their shoes as an" when nee" arises) whereas the '#sinessman generally "o their shoes shopping "#ring tra&eling or on spe(ial o((asion9s% ;.AND .ECOLLECT!ONB ANAL2S!SB When aske" a'o#t re(on(iling a sports shoes 'ran" a'o#t L?G of the respon"ent were a'le to re(all .EE;OK or ADD!DAS were as rest were a'le to remem'er N!KE an" 8!LA 'ran"s% This was "#e to the fa(t that .EE;OK has 'ran" am'assa"or like .A<0L D.A1!D an" 201.AP S!NG<% 8ACTO. !N8L0ENC!NG T<E ;02!NG ,.OCESSB ANAL2S!SB Among the &ario#s fa(tors like so(ial) psy(hologi(al) personal an" (#lt#ral fa(tors it was o'ser&e" that the (ons#mer gi&e more preferen(e to his personal (hoi(e an" psy(hologi(al fa(tors like F?G of the people (onsi"er (omfort an" they generally "o not (onsi"er "#ra'ility as an important aspe(t 'e(a#se they 'elie&e that it (omes along with

the 'ran"% Also the so(ial fa(tor like style was se(on" most important fa(tor 'ehin" the (ons#mer '#ying moti&es%

C;D COM,A.!SON W!T< OT<E. ;.ANDS ANAL2S!SB !n response to the 6#estion a'o#t gi&ing) o#t of 5?? point to the &ario#s fa(tors affe(ting their '#ying ;E<A1!O. 'etween N!KE an" OT<E.9S following was o'ser&e"B OT<E.S N!KE a% Style YYYYA?YYYY YYYK?YYYYY '% ,ri(e YYYY5?YYYY YYY5?YYYYY (% Comfort YYYYYK?YYY YYYK?YYYYY "% ;ran" YYYY5?YYYY YYYA?YYYYY e% D#ra'ility YYYYYK?YYY YYY5?YYYY this f#rther shows that the (ons#mer look for style in the N!KE more in (omparison to the other 'ran" hen(e) ga&e their K? points to it whereas A? in (ase of other 'ran"s it was seen that the (omfort remains at e6#al pla(e e&en while (hoosing a (ompetiti&e 'ran"%

;02!NG 8O.CES ANAL2S!SB !t was o'ser&e" that (ons#mer is for(e" 'y no fa(tors like peer press#re) family an" frien"s an" some time people wo#l" like to '#y a pro"#(t 'e(a#se it is 'eing en"orse" 'y their fa&orite (ele'rity% !t was o'ser&e" that the 'esi"e that personal (hoi(e of the respon"ent) the press#re from the frien"s plays an important '#ying for(e for the st#"ents) while the peer an" (ollege in (ase of the professional an" the least p#rs#ing fa(tor is family whi(h was seen in (ase of the respon"ents 'elonging to age gro#p KF years an" a'o&e%

NO O8 ,EO,LE ;02!NG N!KES<OES E .EE;OK S<OESB

ANAL2S!SB This 6#estion was aske" to know the market (apt#re 'y the .EE;OK an" the time perio" of asso(iation of the (#stomers with .EE;OK% !t was "e"#(e" that more than LFG of the respon"ents were #sing the .EE;OK shoes an" were mainly asso(iate" with it for a perio" of 5 year or more% While the remaining respon"ents were #sing either the N!KE or ADD!DAS 'ran" shoes%

C0STOME. SAT!S8ACT!ONB ANAL2S!SB ;e(a#se of the 6#ality pro"#(t offere" 'y the .EE;OK a'o#t R?G of the respon"ents were either &ery satisfie" or satisfie") while 5?G "i" not ga&e any response as they were not #sing the .EE;OK shoes% K% Do yo# ask for a spe(ifi( 'ran" 'y nameW

=?G people say yes to this% an" the remaining 5?G say no%

J% Whi(h 'ran" "o yo# generally #seW

,eople in !n"ia prefer Nike the most as we (an see that AJG G people prefer Nike sports wear% Then (omes A"i"as an" .ee'ok%

F% <as any sports shoes a" Cseen on T1Qin a maga*ineD ma"e an impa(t on yo#W 2ES NO !8 2ES) T<EN W<2

N!KE JK FL AD!DAS RK KL .EE;OK JF FF ACT!ON K? L?

Most of the people are infl#en(e" with A"i"as9s a") then with .ee'ok an" then Nike% The most #n@infl#ential is that of a(tion%

R% What a((or"ing to yo# is the relati&e importan(e of the followingW 1% !mp !mp% Not so !mp% Doesn9t matter ,.!CE F? A> 5A 5? D0.A;!L!T2 FF JF ? ? ;.AND !MAGE J? A? 5F 5F COM8O.TA;LE FJ KR 5? ? LOOKS J? J? 5F F

;y this we infer that the (ons#mer wants the shoe to 'e "#ra'le that is of primary importan(e for them% Then the pri(e is also &ery important for them% The shoe sho#l" 'e (omforta'le% Along with that looks an" the 'ran" image is also important% L% What feat#res of Nike "o yo# like the mostW

The most like" feat#re of Nike is the light weight shoe% Then it is the enhan(e" toe s#pport% 8rom here we (an infer that most important aspe(t for the (ons#mers is the (omfort they get from the shoes% >% What range yo# preferW

Larger n#m'er of people goes in for shoes that (ome #n"er the range of .s% 5F??@KF??% A s we know that Nike is a premi#m 'ran" ALG of the '#y shoes that falls #n"er the range of .s% KF??@LF?? an" lesser no% of people '#y shoes ranging in 'etween KF?? an" FF??%

=% <ow often yo# '#y NikeW

RAG of the (ons#mers '#y Nike only on(e a year% <ere we noti(e one thing that some "on9t '#y Nike%

5?% Are yo# satisfie" '#ying NikeW

The people who '#y Nike are f#lly satisfie" '#ying it) their per(entage is RJG% Only 5F G are not satisfie" '#ying it%

55% Do yo# think Nike ser&es the p#rpose of 'eing a goo" 'ran") for Sports wearW

FRG of the people agree that Nike ser&es its p#rpose for 'eing a sport 'ran"% Only ALG people "on9t agree with it%

5A% Will yo# prefer Nike la#n(hing a new range whi(h (an ser&e the p#rpose of ser&i(e (lassW

RLG say yes to the i"ea of la#n(hing a new range for the ser&i(e (lass% KR "on9t ha&e any i"ea of this%

CONCL0S!ON E 8!ND!NGS The spe(ifi( 'ran" o'-e(ti&e of Nike !n"ia wo#l" 'e to '#il" #p its 'ran" rep#tation) image an" e6#ity% A 'ran" is not simply a (olle(tion of pro"#(ts an" 'enefits) '#t also a storeho#se of &al#e stemming from awareness) loyalty) an" asso(iation of 6#ality an" 'ran" personality% A 'ran" is a name) term) sign) sym'ol or "esign or a (om'ination of them inten"e" to i"entify the goo"s or ser&i(es of one seller or gro#p of sellers an" to "ifferentiate from those of (ompetitors% !n essen(e) a 'ran" i"entifies the seller or maker% !t (an (on&ey #p to si7 le&els of meaningB Attri'#tes) ;enefits) 1al#es) C#lt#re) ,ersonality an" 0ser% !f a (ompany treats a 'ran" only as a name it misses the point% The 'ran"ing (hallenge is to "e&elop a "eep set of positi&e asso(iations for the 'ran"% Altho#gh these si7 meanings are noti(ea'le in the Nike 'ran" in the west an" other parts of the worl") they are yet to 'e (#lti&ate" in !n"ia% Nike has to ens#re that their 'ran" is '#ilt #p on these pillars in !n"ia% The se(on"ary 'ran" o'-e(ti&e of Nike !n"ia wo#l" 'e to ens#re that they mat(h the market share an" sales &ol#mes of its (ompetitors% After all) a (ompany is in '#siness to make profits an" stay ahea" of its (ompetitors% A (ompany) pro"#(t or 'ran" may ha&e a &ery goo" rep#tation an" image) '#t if it is not profita'le) it "oes ser&e its p#rpose% At the same time sales fig#res an" "ata (an 'e mislea"ing% <en(e market share has also to 'e pai" attention to%

Nike "espite 'eing one of the most pop#lar 'ran"s in the worl" has not really (a#ght on in !n"ia% 2et) there is reason to 'elie&e that ;ata9s ,ower an" Li'erty wo#l" 'e ahea" of Nike in terms of pop#larity% We also noti(e that Nike is at par with .ee'ok% This again "oes not refle(t too well on the 'ran") (onsi"ering that Nike o#tsells .ee'ok e&erywhere else in the worl"% <en(e it is reasona'le to state that Nike9s pop#larity le&el in !n"ia (o#l" "o with a 'oost% The 'est way to a(hie&e this wo#l" 'e some serio#s 'ran" '#il"ing% The image of the 'ran" has to 'e impro&e" an" people m#st 'e ma"e aware of its presen(e% Th#s) the rationale 'ehin" (hoosing impro&ement of 'ran" image an" rep#tation as the (ompany9s primary o'-e(ti&e is 6#ite (lear% Nike9s "istin(ti&e (ompeten(y lies in the area of marketing) parti(#larity in the area of (ons#mer 'ran" awareness an" 'ran" power% On the glo'al s(ale this key "istin(ti&e (ompeten(y towers o&er the (ompetitors% As a res#lt) Nike9s market share is n#m'er@one in the athleti( footwear in"#stry in most pla(es aro#n" the worl"% Cat(h phrases like) UP#st Do !t)U an" sym'ols like the Nike USwoosh)U (o#ple with sports i(ons to ser&e as instant remin"ers of the Nike Empire% !t is a'o#t time that this (ompeten(y is le&erage" on to !n"ia% Two key attri'#tes of a "istin(ti&e (ompeten(y are its ina'ility to 'e easily repli(ate" an" the &al#e or 'enefit it offers to (ons#mers% 8ew (ompanies ha&e s#(h a re(ogni*a'le image an" the reso#r(es to promote it% This #ltimately translates into a""e" &al#e for (ons#mers% The p#'li( 'enefits from the strength of Nike9s image at the point of p#r(hase% 8or "e(a"es) (ons#mers ha&e (ome to asso(iate the Nike image with 6#ality pro"#(ts% ;y asso(iating star athletes an" moti&ational slogans like) UP#st Do !t)U with marketing (ampaigns that emphasi*e fitness) (ompetition) an" sportsmanship) (ons#mers i"entify their p#r(hases with the prospe(t of a(hie&ing greatness% 2o#nger (ons#mers espe(ially 'enefit from this positi&e infl#en(e% This image is something that (ompeting (ompanies (an not easily "#pli(ate 'y simply enhan(ing the physi(al (hara(teristi(s of their pro"#(ts% Nike9s &ision is to remain the lea"er in the in"#stry% The (ompany will (ontin#e to pro"#(e the 6#ality pro"#(ts that ha&e 'een pro&i"e" in the past% Most importantly) Nike will (ontin#e to meet the e&er@(hanging nee"s of the (#stomers) thro#gh pro"#(t inno&ation% !n the past) the (ompany has #tili*e" pro"#(t "ifferentiation as the main (ompetiti&e strategy% As Nike9s rep#tation "i(tates) it will (ontin#e to pla(e emphasis in this area% Nike has '#ilt its '#siness on pro&i"ing pro"#(ts that rise a'o&e all others an" this has ma"e it the worl"wi"e s#((ess that it is to"ay% Nike is known for its te(hnologi(ally a"&an(e" pro"#(ts an" is the lea"er in this area% This allows Nike9s pro"#(ts to stan" o#t from the rest% The (ompany9s fo(#s also allows it to maintain a somewhat narrow ni(he that ena'les it to effe(ti&ely (apt#re the nee"s an" wants of the (ons#mers% An e7ample of Nike9s s#perior an" inno&ati&e te(hnology is its new range of shoes (alle" Air ,resto$% Terme" as the first T@shirt for the feet)

these shoes (an take the shape an" si*e of the wearer9s feet% 0nlike reg#lar shoes it (omes are si*es like /L) L) M) S an" /S% Ea(h of these si*es (an a((ommo"ate three (on&entional foot si*es% Nike will (ontin#e to pro"#(e s#(h path@'reaking pro"#(ts in the f#t#re an" stay a step ahea" of its (ompetitors% Nike will also fo(#s on making a strong effort in pri(e lea"ership% Nike9s pro"#(ts in the past ha&e 'een (on(entrate" in the higher en" of the pri(ing (ategory% An entran(e will now 'e ma"e into lower pri(e (ategories with these 6#ality pro"#(ts% This will ena'le Nike to (apt#re an e&en greater hol" on market share% ,resently) the only form of (#stomer relationship management a(ti&ity that Nike has a"opte" in !n"ia is pro"#(t warranty% Nike shoes (ome with a si7@month warranty% !f the shoe is fo#n" to 'e "efe(ti&e or wears o#t within si7 months "#e to no fa#lt of the wearer) Nike repla(es the pro"#(t% This is only the first step an" more nee"s to 'e "ome in this area% ;eing a (ompany that always stri&es towar"s e7(ellen(e) Nike nee"s to know e7a(tly what its (#stomers think a'o#t their pro"#(ts% A goo" way of assessing this wo#l" 'e to ha&e the (#stomer fill in a form at the point of p#r(hase% The form will ask the (#stomer his Q her opinion on the pro"#(t as well as the showroom% S#ggestions an" (omments wo#l" 'e wel(ome% <owe&er) (are m#st 'e taken to ens#re that these forms are not too (#m'ersome an" "o not take #p too m#(h of the (#stomer9s time% S#r&eys ha&e in"i(ate" that normally people "on9t min" filling in forms as long as they are not too long% Another goo" metho" wo#l" 'e to intro"#(e a system of (#stomer points% E&ery time a (#stomer makes a p#r(hase) he wo#l" earn himself a (ertain n#m'er of points) "epen"ing on the pri(e of the pro"#(t% After he (rosses a (ertain point le&el) he wo#l" 'e entitle" to a gift from the (ompany or (hoose a pro"#(t of a (ertain &al#e from the range% This wo#l" 'e helpf#l in '#il"ing (#stomer loyalty an" gi&e them an in(enti&e to make repeat p#r(hases% A most &al#e" (#stomer "ata'ase (o#l" 'e (reate" from her e an" &ario#s forms of "ire(t marketing (o#l" 'e "ire(te" at them% This wo#l" help the (ompany to retain its e7isting (#stomers% A thir" way to impro&e (#stomer relationship wo#l" 'e to iss#e gift (o#pons an" &o#(hers% ,eople wo#l" ha&e the fa(ility to '#y these &o#(hers an" present them to their "ear ones% This wo#l" 'e a goo" way to rea(h o#t towar"s newer (#stomers thro#gh e7isting ones% .ECOMMENDAT!ONS To e7plore the mainlan" market) <ong Kong (ompanies sho#l" position themsel&es in areas in whi(h they are strong% 8rom the &iewpoint of mainlan" (ons#mers) <ong KongNs leather (ons#mer goo"s are (onsi"ere" (ompetiti&e in the high@en" an" mi"@range%

Mainlan" (ons#mers are 'ran" (ons(io#s) an" it is &ital to promote own 'ran"s whi(h ha&e (lear image% This s#r&ey also shows that <ong Kong pro"#(ts are preferre" for their "esignQstyle an" 6#ality% ;earing these in min") <ong Kong (ompanies sho#l" ne&er (ompromise on 6#ality) an" they sho#l" allo(ate more reso#r(es to pro"#(t "esign) sele(tion of material an" (raftsmanship% OT<E. S0GGEST!ON !NCL0DE Department stores are the prime sales an" marketing (hannel for leather (ons#mer goo"s% !n a""ition) store "e(orations an" pro"#(t "isplays sho#l" 'e "esigne" to (reate a strong first impression% Seasonal promotion (ampaigns) like spe(ial "is(o#nts an" a"&ertisements) (o#l" 'e employe"% New lines of (olle(tions sho#l" 'e intro"#(e" for festi&als% !n a""ition to promotional a(ti&ities in shopping malls an" "epartment stores) "is(o#nts an" T1 (ommer(ials are (onsi"ere" effe(ti&e (hannels for promotion% !t is a"&isa'le to pay attention to the affor"a'ility of (#stomers in "ifferent (ities) while setting pri(e points for "ifferent pro"#(t (ategories% Meanwhile) leather shoes offer 'etter growth potential% ,op#lar materials #se" for leather (ons#mer goo"s in(l#"e 'o&ine skin) goatQki"Qlam'Qsheep skin an" (ro(o"ile skin% .egar"ing (olors) 'la(k is 'y far most so#ght@after with "ark 'rown in se(on" pla(e% D#e to their growing spen"ing power) the rising mi""le (lass sho#l" 'e the target of <ong KongNs sellers of leather (ons#mer goo"s% <ong Kong (ompanies sho#l" p#t more emphasis on pro"#(ts for '#siness #se% !n a""ition) it is #sef#l to intro"#(e appropriate "esigns that (ater for the tastes of the mi""les (lass% Do#'le Cli(k A??R Cons#mer Email St#"y O(to'er A??R) the fo#rth of Do#'le@Cli(k ann#al (ons#mer email st#"ies points to an in(reasing sophisti(ation in (ons#mer #sage of email f#n(tionality an" a (orrespon"ing (omple7ity of p#r(hasing 'eha&ior% The Spam (risis (ontin#es to affe(t (ons#mer 'eha&ior online '#t "oes not ne(essarily (lo#" (ons#mer re(epti&eness to legitimate marketersB an o&erwhelming ma-ority of online (ons#mers re(ei&e offers 'y email an" ha&e ma"e a p#r(hase online or offline as a res#lt% Cons#mers are #sing a&aila'le tools to limit spam an" are employing operate email a((o#nts for p#r(hasing) all in attempts to in(rease (ontrol an" impro&e their email e7perien(e% Working with ;eyon" !ntera(ti&e an" the N8OQQnet so#r(e panel of =??)??? 0S (ons#mers) polle" 5)???(ons#mers &ia email from P#ly K? @ A#g#stF) A??L% All respon"ents re(r#ite" #se emailQinternet 5Z times per week) whi(h refle(ts the #sage of the larger online pop#lation C=JG of the 5>Z online pop#lation a((or"ing to Nielsen) A??RD%There was an e6#al segmentation of men an" women an" the a&erage age was JA%L%This is the fo#rth of an ann#al series of (ons#mer resear(h st#"ies an" tren"ing information was "eri&e" #sing the "ata from pre&io#s years% The sample mirrore" pre&io#s st#"ies an" is refle(ti&e of the online pop#lation as a whole%

Key 8in"ings The ma-ority of (ons#mers re(ei&e some kin" of marketing email with spe(ial offers from retailers most (ommon Sen"er re(ognition most impa(ts operates) while (ontent rele&an(e in(reases likeliness to p#r(hase 8re6#en(y as(ertain (ategory) are &ery spe(ifi( to the (ategory of email '#t &ary greatly from one (ons#mer to the ne7t: fre6#en(y of permission 'ase" email is (learly a great (on(ern to (ons#mers an" has an impa(t on what they (onsi"er to 'e Spam% Email "ri&es m#lti@(hannel p#r(hases an" has an imme"iate as well as a latent Nearly RJG of (ons#mers (ite the line as the most important fa(tor in opening an email%A??R Cons#mer Email St#"y impa(t% !t "ri&es (ons#mers most often to the online (hannel '#t also res#lts in retail an" (atalog sales% Cons#mers ha&e 'e(ome sophisti(ate" in their #se of !S,@s#pplie" tools to limits ,am an" in their #sage of &ario#s email a""resses to manage their &arie" email a(ti&ities <ome an" free email a""resses are most often #se" for p#r(hasing) within email a""ress spe(ifi(ally "esignate" for that #sage% Men an" women ha&e ra"i(ally "ifferent i"eas of what spam is an" "ifferent p#r(hasing 'eha&ior relate" to Spam% Women are more re(epti&e to promotions an" "is(o#nts an" (orrespon"ingly more intereste" in an" tolerant of marketing emails than men% .e(epti&eness to Marketer Emails% The &ast ma-ority C=5GD of (ons#mers re(ei&e some form of permission@'ase" email with FL%AG re(ei&ing spe(ial offers from online mer(hants) FF%JG re(ei&ing them from tra"itional retailers) an" J>%FGre(ei&ing them from (atalogers% Other pop#lar types of marketing emails in(l#"e" a((o#nt statementsQonline 'ill payment information Cre(ei&e" 'y J=%>G of respon"entsD) tra&el emails CJK%KGD) (o#pons for gro(eries CJ?%?GD) health CJ5%5GD an" ho#sehol" tipsQre(ipesQ(rafts CJA%5GD% Of (ategories in whi(h (ons#mers "o not (#rrently re(ei&e e@mails) respon"ents are most intereste" in re(ei&ing gro(ery (o#pons C(ite" 'y AA%5GD an" ho#sehol" tipsQre(ipesQ(rafts C5K%RGD%Other (ategories of strong interest were ele(troni(s an" (omp#ter softwareQhar"ware) 5K%>G an" apparelQshoes at5A%KG% ,ermission@'ase" email also (ontin#es to 'e the preferre" metho" of (onta(t from the fa&orite retailer regar"ing new pro"#(ts) ser&i(es or promotions Cpreferre" 'y F=G of (ons#mersD) while only KA%5G preferre" "ire(t mail% Sen"er .e(ognition) Content .ele&an(e Most !mpa(ts ,#r(hasing (onsi"eration 'eha&ior) the line (ontin#es to 'e the most (ompelling reason to open permission@'ase" email) (ite" 'y RK%KG of all respon"ents) an in(rease from F=%=G inA??F% This speaks to the growing signifi(an(e of #ser re(ognition of sen"er an" the power of 'ran"s [\$ e&en more important in an era of spam% Of all types of s#'-e(t lines) "is(o#nt offers are the primary moti&ational fa(tor for opening permission 'ase" email Cin(rease" toF=%FG of all respon"ents from FR%LG in A??LD) while (ompelling news an" information fell from FL%RG of all respon"ents to J>%RG in A??R%Spe(ial offers from retailersQ(atalogers re(ei&e" 'y at least F?G of respon"ents When aske" what most (ompelle" them to take a(tion on a permission@'ase" email) pro"#(t ! nee"e" at the time) a refle(tion of the rele&an(y of the offer) was note" 'yKL%>G of all respon"ents) o#tranking the ne7t most (ommon (hoi(e) spe(ial offer or "is(o#nt) (ite" 'y KF%?G of respon"ents% Likeliness to respon" (o#l" 'e in(rease" if an email (ontains rele&ant information Cnote" 'y RL%KG of respon"entsD an" (ontains information 'ase" on interests spe(ifie" to that (ompany% Cons#mers fo#n" re(ommen"ations 'ase" on past p#r(hasing 'eha&ior less appealing Cnote" 'y only A>%5G of all respon"entsD%Cons#mers (learly want a "egree of (ontrol o&er what

marketers sen" them an" wo#l" like their spe(ifie" interests taken into a((o#nt% Cons#mers are also &ery spe(ifi( in their fre6#en(y preferen(es) with news an" weather most often preferre" "aily) spe(ial offers from retailers) online mer(hants an" (atalogers most often preferre" weekly) an" a((o#nt statementsQ'ill payment (omm#ni(ations monthly% <owe&er) there9re signifi(ant n#m'ers of (ons#mers who &ary in these preferen(es) with -#st o&erA?G of those who re(ei&e spe(ial offers an" "is(o#nts from retailers) online mer(hants an" (atalogers preferring the (omm#ni(ations to (ome monthly% !n a((or"an(e with spe(ifie" fre6#en(y statements) when aske" what (on(erne" them a'o#t their in'o7es) fre6#en(y of permission@'ase" email was se(on" only to Spam) (ite" 'y JAG of respon"ents% This "anger is e&en more prono#n(e" (onsi"ering only A>G note" fre6#en(y of permission@'ase" email as a (on(ern inA??R% Clearly marketers nee" to test for optimal fre6#en(y an" soli(it (#stomer preferen(es% Email Dri&es M#lti@Channel ,#r(hases ;#t at the E7pense of Offline .etail ,ermission@ 'ase" emails (learly "ri&es p#r(hases% Si7ty@se&en per(ent of respon"ents re(ei&e" an email offer from a Cons#mers take a(tion on emails (orrespon"ing to pro"#(t nee" .ele&ant (ontent) information spe(ifie" 'y #ser in(reases likeliness to respon" A??L Cons#mer Email St#"y) Cataloger or online mer(hant that res#lte" in a p#r(hase% Top p#r(hasing (ategories wereB apparelQshoes at >K%JGmaking a p#r(hase) (omp#ter softwareQhar"ware at >5%JG) giftsQflower sat LL%RG) tra&el at LL%AG) ele(troni(s atLL%5G an" foo" at L5%LG% The only #n"er performing (ategory was finan(ial pro"#(ts an" ser&i(es at J5%FG) whi(h (o#l" relate to the high (onsi"eration ne(essary for these pro"#(ts) the in(i"en(e of spam in this (ategory or la(k of interest "#e to the e(onomy% The (hannel p#r(hase" in as a res#lt of permission@'ase" email is highly spe(ifi( to the (ategory of pro"#(tB tra&el ha" the highest in(i"en(e of online p#r(hase atL?G with only 5KG p#r(hasing 'y (atalogQphoneQmail) while apparelQshoes ha" a relati&ely high in(i"en(e of online p#r(hase) F>G with J5G p#r(hasing &ia offline retail an" AKG &ia (atalog) an" o&er the (o#nter an" pres(ription "r#gs ha" e6#al le&els of online an" retail p#r(hase at KAG%Email marketing promotes #se of the online (hannel% !n (omparing the typi(al (hannel p#r(hase 'eha&ior of respon"ents in a &ariety of (ategories to where they were most likely to p#r(hase after re(ei&ing permission 'ase" email) the res#lts show that respon"ents are more likely than #s#al to #se the online (hannel for p#r(hasing after re(ei&ing a permission 'ase" email: this is tr#e in all (ategories e7(ept finan(ial ser&i(es% !n apparelQshoes) where K5G wo#l" typi(ally '#y online) a permission@'ase" email res#lte" in an in(rease of online (hannel #sage to F>G) giftsQflowers saw online (hannel lift from JFGto R5G) an" ele(troni(s from JFG to R?G%8or (ons#mers who re(ei&e email offers from retailers in the apparelQshoes (ategory) email marketing "oes in(rease #se of the (atalog (hannel% Of those who re(ei&e emails from (atalogers) 5RG reporte" that they typi(ally 'o#ght &ia (atalogs% This n#m'er rose to AKG saying they ha" p#r(hase" tho#gh a (atalog after re(ei&ing permission 'ase" email% This e7ample ill#strates the "ire(t (onne(tion 'etween (atalog "rops with effe(ti&ely se6#en(e" email marketing #se" as a p#r(hase "ri&er% The Latent !mpa(t of Email Marketing Most a(tion taken in response to email marketing "oes not res#lt imme"iately from the (li(k% While ALG (li(ke" thro#gh an" ma"e a p#r(hase "#ring that same online session) an e&en greater n#m'er) KK%RG) (li(ke" thro#gh to fin" o#t more information) then p#r(hase" online at a later "ate% An a""itional 5A%AG (li(ke" thro#gh to fin" more information an" then p#r(hase offline thro#gh (atalog or retail% ,ermission@'ase" offers generate sales%

As was "emonstrate" 'y the great interesting "is(o#nts an" spe(ial offers) email #sage for (omposing is on the rise an" as offline th#s latent impa(t as well% Se&enty two per(ent of respon"ents reporte" ha&ing #se" (o#pons or offer (o"es Can in(rease of FLG o&er the JRGwho reporte" #sing them in A??LD% 8ifty@eight per(ent of respon"ents #se" the (o#pon or offer (o"e at an offline store% All of this latent a(ti&ity res#lting from email marketing "eman"s that marketers in(rease their own (ross@(hannel sophisti(ation in "ata (apt#reB #nless they9re meas#ring 'oth online an" offline p#r(hase a(ti&ity) imme"iate an" latent impa(t) they are not (apt#ring the f#ll effe(t of their email performan(e% Cons#mers ;e(ome More Sele(ti&e in their ,ra(ti(es) !n(reasingly 0se Tools to Limit S,AME mail &ol#me as reporte" 'y (ons#mers was #p '#t not marke"ly so CARJ emails per week &s% AFJ in A??LD% Spam remaine" the n#m'er@one (on(ern a'o#t their email 'o7) note" 'y >=G of respon"ents C(onsistent with last yearD%The per(ent of email re(ei&e" that was Spam FRG was also (onsistent withA??L% What ha&e (hange" are their opening pra(ti(esB Only ALG opene" =?G of their permission 'ase" email) while a'o#t a thir" CK?GD "i" so in A??L% !n regar"s to what they are most likely to "o with Spam) an in(reasing n#m'er are "eleting witho#t rea"ing CRFG as (ompare" toR?G in A??LD an" only JG are rea"ing to "etermine whether it is of interest Cas (ompare" to FG in A??L an" 5>G inA??RD% The likeliness of #ns#'s(ri'e has "e(line" marke"ly Cfrom KKG inA??R to AJG in A??LD% ,erhaps (ons#mers ha&e gotten fe" #p or "e(i"e" the a(ti&ity was f#tile% When aske" what spe(ifi(ally they were "oing to eliminate or limit spam) a &o(al minority) KR%5G reporte" #sing a Spam f#n(tion of their email program) 5F%=G"ownloa"e" spam filtering software an"5K%LG (reate" a se(on"ary email a""ressor making online p#r(hases% A key fin"ing of the A??F st#"y ha" 'een the #sage of on a&erage A%R email a""resses per respon"ent% This year) respon"ents ha&e (learly 'e(ome tire" of the (omple7ity of managing those a((o#ntsB this year) only KJG reporte" ha&ing more than two a""resses whileJJG reporte" ha&ing that many in A??L%.espon"ents seem to 'e (onsoli"ating) with an a&erage n#m'er of a((o#nts atA%K in A??L%Latent impa(tB nearly JRG p#r(hase online or offline some time after (li(king thro#gh an email With more than one in@'o7) what "o (ons#mers (onsi"er the primary a""ressW ,erhaps in relation to the amo#nt of -o' insta'ility an" the "esire of ha&ing a more permanent a""ress) the home a""ress was (onsi"ere" the primary one% Of those with m#ltiple a""resses) LJG ha" a spe(ifi( email a""ress that they #se" for online p#r(hasing) with either the home a""ress C(ite" 'y J>%KGD an" a free a""ress C(ite" 'y K=%LGD as this p#r(hasing a""ress% .etail@oriente" email marketers (learly nee" to make spe(ial efforts at impro&ing "eli&era'ility among the ma-or home !S,s an" free email pro&i"ers as this (learly will impa(t o&erall performan(e% Mars E 1en#sB Men .eally Are Different from Women in .espe(t to Email Marketing Two &ery spe(ifi( areas stan" o#t in how men &s% women rea(t to email marketingB men ha&e a m#(h 'roa"er "efinition of Spam) while women are m#(h more likely to 'e a(ti&e p#r(hasers as a res#lt of permission@'ase" email% More men than women (onsi"er spam to fall into these &ery 'roa" "efinitionsB RFG (ite" an email from a (ompany that ! ha&e "one '#siness with '#t (omes too often while only FRG of women "i" so) R5G of men (ite" an email that may ha&e 'een permission 'ase" '#t (omes too fre6#ently while only FFG of women "i" so an" KRG (ite" any email that tries to sell me

a pro"#(t or ser&i(e while KAG of women "i" so% Correspon"ingly) women are more sensiti&e to emails of offensi&e s#'-e(t matter C=JG women &s% =5G menD %A(ti&e p#r(hasers) those who p#r(hase" in m#ltiple pro"#(t (ategories or from &ario#s types of (ompanies Cm#lti@(hannel shoppersD after re(ei&ing an email) are more likely to 'e women than men% Aloof these "ata points a"" #p to online 'eha&ior that mirrors offline% Women remain the primary ho#sehol" p#r(hasers) A??L Cons#mer Email St#"y .espon"ents with m#ltiple a((o#nts likely to #se a free one for online p#r(hases Women more likely to 'e a(ti&e p#r(hasers) m#lti@(hannel p#r(hasers% The fo#rth of Do#'le@Cli(k ann#al (ons#mer email st#"ies points to an in(reasing sophisti(ation in (ons#mer #sage of email f#n(tionality an" a (orrespon"ing (omple7ity of p#r(hasing 'eha&ior% The Spam (risis (ontin#es to affe(t (ons#mer 'eha&ior online '#t "oes not ne(essarily (lo#" (ons#mer re(epti&eness to legitimate marketersB an o&erwhelming ma-ority of online (ons#mers re(ei&e offers 'y email an" ha&e ma"e a p#r(hase online or offline as a res#lt% Cons#mers are #sing a&aila'le tools to limit spam an" are employing separate email a((o#nts for p#r(hasing) all in attempts to in(rease (ontrol an" impro&e their email e7perien(e% O'-e(ti&esQMetho"ology Do#'le@Cli(k) working with ;eyon" !ntera(ti&e an" the N8OQQnet so#r(e panel of =??)??? 0S (ons#mers) polle" 5)???(ons#mers &ia email from P#ly K? @ A#g#stF) A??L% All respon"ents re(r#ite" #se emailQinternet 5Z times per week) whi(h refle(ts the #sage of the larger online pop#lation C=JG of the 5>Z online pop#lation a((or"ing to Nielsen) A??LD%There was an e6#al segmentation of men an" women an" the a&erage age was JA%L%This is the fo#rth of an ann#al series of (ons#mer resear(h st#"ies an" tren"ing information was "eri&e" #sing the "ata from pre&io#s years% The sample mirrore" pre&io#s st#"ies an" is refle(ti&e of the online pop#lation as a whole% Key 8in"ings The ma-ority of (ons#mers re(ei&e some kin" of marketing email with spe(ial offers from retailers) online mer(hants an" (atalogers most (ommon Two to one (ons#mers prefer to 'e (onta(te" 'y their fa&orite retailer regar"ing new pro"#(ts) ser&i(es or promotions &ia email rather than "ire(t mail% Sen"er re(ognition most impa(ts operates) while (ontent rele&an(e in(reases likeliness to p#r(hase 8re6#en(y preferen(es) or how often respon"ents prefer to re(ei&e emails of as(ertain (ategory) are &ery spe(ifi( to the (ategory of email '#t &ary greatly from one Cons#mers prefer to 'e (onta(te" 'y their fa&orite retailer &ia email% ANNE/0.E O0EST!ONNA!.E 5 ! '#y my own shoes 1ery fre6#ently fre6#ently sometimes ne&er

A ! fin" '#ying shoes a pleas#ra'le e&ent% 1ery fre6#ently fre6#ently sometimes ne&er K% ! '#y (ostly shoes 1ery fre6#ently fre6#ently sometimes ne&er J for p#r(hasing shoes) ! (an tra&el long "istan(e 1ery fre6#ently fre6#ently sometimes ne&er F ! '#y shoes whi(h are like" 'y my family Strongly agree Agree !n"ifferent Disagree Strongly "isagree R ! '#y shoes whi(h are a"&ertise" attra(titi&ely Strongly agree Agree !n"ifferent Disagree Strongly "isagree L ! '#y shoes whi(h are a"&ertise" an" en"orse" 'y (ele'rity% > ! like to '#y shoes whi(h are importe" from ,aris or !taly% Strongly agree Agree !n"ifferent Disagree Strongly "isagree =% ! like to '#y shoes whi(h are "esigne" in ,aris or !taly% 5?% ! like to '#y shoes whi(h are &ery stylish E of latest "esign% Strongly agree Agree !n"ifferent

 Disagree Strongly "isagree 55% ! like to '#y shoes whi(h are less e7pensi&e '#t &ery stylish E of latest "esign% Strongly agree K?%?? Agree F?%?? !n"ifferent 5J%?? Disagree J%?? Strongly "isagree A%?? 5A% ! Like to '#y shoes whi(h are not &ery stylish '#t (omforta'le CG%of .espon"entsD Strongly agree 5?%?? Agree K?%?? !n"ifferent 5>%?? Disagree KA%?? Strongly "isagree 5?%?? 5K% ! Like to '#y shoes whi(h are not stylish '#t (omforta'le an" long lasting Strongly agree Agree !n"ifferent Disagree Strongly "isagree 5J ! Like to '#y shoes whi(h are e7pensi&e E stylish '#t (omforta'le strongly agree Agree !n"ifferent Disagree Strongly "isagree 5F ! like to '#y Nike shoes whi(h are e7pensi&e E stylish '#t (omforta'le Strongly agree >%?? Agree AJ%?? !n"ifferent J%?? Disagree A%?? Strongly "isagree A%??

5R ! like to '#y Nike shoes whi(h are not &ery stylish '#t (omforta'le Strongly agree 5A%?? Agree 5R%?? !n"ifferent A%?? Disagree >%?? Strongly "isagree A%??

5L ! like to '#y Nikeshoes whi(h are not stylish '#t (omforta'le an" long lasting Strongly agree >%?? Agree 5R%?? !n"ifferent A%?? Disagree 5A%?? Strongly "isagree A%?? 5> ! like to '#y Nikeshoes whi(h are not &ery stylish '#t (omforta'le Strongly agree 5J%?? Agree 5R%?? !n"ifferent Disagree Strongly "isagree 5= ! like to '#y Nikeshoes whi(h are less e7pensi&e '#t &ery stylish E of latest "esign% Strongly agree J%?? Agree 5?%?? !n"ifferent J%?? Disagree 5J%?? Strongly "isagree J%??

A? ! like to '#y Nikeshoes whi(h are &ery stylish E of latest "esign% Strongly agree A%?? Agree R%?? !n"ifferent >%?? Disagree AA%?? Strongly "isagree A%?? A5 ! like to '#y Tailor ma"e shoes whi(h are &ery stylish E of latest "esign% Strongly agree 5?%?? Agree K>%?? !n"ifferent AJ%?? Disagree 5R%?? Strongly "isagree 5A%?? AA ! will (ertainly '#y shoes if high 6#ality mat(hing imitation -ewelry gi&en free% Strongly agree KR%?? Agree FR%?? !n"ifferent J%?? Disagree J%?? Strongly "isagree ?%?? AK ! will (ertainly '#y shoes if high 6#ality importe" s(ent gi&en free% Strongly agree K>%??

 Agree R?%?? !n"ifferent A%?? Disagree A%?? Strongly "isagree ?%?? AJ My e7pe(tation is f#lfille" 'y my shoe s#pplier% Strongly agree R%?? Agree AJ%?? !n"ifferent JA%?? Disagree >%?? Strongly "isagree ?%?? AF Shoe (ompanies sho#l" s#r&ey (#stomer preferen(es% Strongly agree AJ%?? Agree FR%?? !n"ifferent 5R%?? Disagree A%?? Strongly "isagree A%?? AR Shoe (ompanies sho#l" s#ggest shoe "esign #sing (ele'rity% Strongly agree KA%?? Agree FA%?? !n"ifferent 5J%?? Disagree A%?? Strongly "isagree ?%?? AL ! know e7a(tly what ! want in my shoes% Strongly agree >%?? Agree AR%?? !n"ifferent AJ%?? Disagree AA%?? Strongly "isagree A?%?? A> ! "on9t want to spen" too m#(h time on "e(i"ing my shoes% Strongly agree A>%?? Agree F>%?? !n"ifferent >%?? Disagree R%?? Strongly "isagree ?%?? A= Stores "isplay is the 'est form of a"&ertisement Strongly agree AJ%?? Agree J>%?? !n"ifferent 5?%?? Disagree J%?? Strongly "isagree ?%??

K? T%1 a"&ertisement is the 'est form of a"&ertisement Strongly agree 5R%?? Agree FA%?? !n"ifferent J%?? Disagree 5R%?? Strongly "isagree 5A%?? K5 ;#ying (#stomi*e" shoe 'y internet is &ery attra(ti&e% Strongly agree AJ%?? Agree FA%?? !n"ifferent J%?? Disagree 5R%?? Strongly "isagree J%?? KA ;#ying (#stomi*e" shoe 'y internet is &ery attra(ti&e% ;#t no spam mail% Strongly agree 5R%?? Agree A>%?? !n"ifferent A%?? Disagree 5?%?? Strongly "isagree JJ%??

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