26-08-2019

MARKETING
MANAGEMENT– 1
GROUP ASSIGNMENT - 3
Presented by :-
• Aman Sharma – 191312
• Kushal Gupta – 191328
• Prateek Mittal – 191344
• Varshil Modi – 191360
Section C (Group 12)

Product Category selected

Footwear (Sports Shoes)

1
 26-08-2019

OVERVIEW
The various Kinds of shoes present in market:
• Loafers
• Chukkas
• Work boots
• Dress boots
• Duck boots
• Sneakers
• Athletic footwear
• High ankle Shoes
• Running Shoes

World Footwear market

• Market value: The global footwear market was worth US$ 227.1 Billion in 2018.
• Market value forecast: The global footwear market size will grow by USD 40.4 billion
during 2019-2023.
• Category segmentation: Women's footwear is the largest segment of the global footwear
market, accounting for 53.9% of the market's total value.
• Geography segmentation: Asia-Pacific accounts for 33.7% of the global footwear market
value.

2
 26-08-2019

Share of the leading 10 global footwear consumers

by country

Indian footwear market

• Market:India is globally the second
largest footwear producer after China.
India‟s footwear production accounts for
approximately 9% of the global annual
production of 22 billion pair as compared
to China which produces over 60%
• Market value forecast: In 2020, the
Indian footwear market is forecast to have
a value of $8,950.4 million.

3
 26-08-2019

Indian Footwear market

• Category segmentation: Men's footwear is the largest segment of the footwear
market in India, accounting for 54.3% of the market's total value.
In term of product type, the market is dominated by casual footwear market that
contribute approximately 61% of the total footwear retail market.
• Geography segmentation: India accounts for 5.5% of the Asia-Pacific footwear
market value.
• More than 4000 manufacturing units in footwear(most of them are small scale-
55%)
• The non-metro market accounts for nearly 55% of the overall footwear industry

Athletic footwear market

• The athletic footwear market incorporates
sportswear, trekking shoes, aerobics shoes,
walking shoes, and running shoes.
• Increased awareness regarding healthy
lifestyle motivates people to engage into some
kind of sports activity that will drive the
industry in the coming years.
• Presently, men‟s athletic footwear market
captures about 60% of overall revenue
generated.
• Women‟s footwear accounts for around 25%
share, with the rest occupied by products for
children, which are estimated to witness rapid
revenue growth.(Global Market Insights, 2018)

4
 26-08-2019

Market Players in the Athletic Footwear Industry

• Today sportswear market is dominated by the “Big Four” global players. They are:
Adidas ( + Acquired Reebok)
Nike
Puma

Market players in the industry

5
 26-08-2019

Marketing Mix
• ONLINE PROMOTION- Promote, connect and obtain feedback via platforms like Facebook and
Twitter.
.
• PROMOTIONS VIA TV COMMERCIALS- Certain celebrities are roped in for promoting the
product on TV, which forms the major portion of advertisement of the respective products.
• PRINT COMMERCIALS- Appearance of advertisement on the newspapers/magazines read by
the target segment.
• BRAND AMBASSADORS- Nike has their brand ambassador as Lionel messi, also Nike is
sponsor of Indian cricket team. Rohit Sharma is brand ambassador for Adidas.

Nike

• NIKE is the largest seller of athletic

footwear and apparel in the world.

• Nike is the market leader in the global athletic

footwear industry, with sales amounting to revenue of
over $ 39,117 million U.S. dollars in 2019 which is
significantly higher than the combined revenues of its
two closest competitors, Adidas and Puma, who made
global sales of € 21,915 million and € 675.3 million
respectively. SOURCE: NIKE ANNUAL REPORT

6
 26-08-2019

• Nike‟s major revenue come from footwear category.

It carries almost 65% of revenue break down by
product category.

SOURCE: NIKE ANNUAL REPORT

• Nike establishes and maintains relationships with professional

athletes, sports teams and leagues, as well as other public
figures, including artists, designers and influencers, to develop,
evaluate and promote their products, as well as establish product
authenticity with consumers as their marketing strategy.

•NIKE was one of the first

sportswear companies to offer
online sales. It has also
invested considerably in
creating a premium and
seamless digital experience.
•E-commerce sales make up
about 15% of NIKE‟s direct-
to-consumer, or DTC, sales. E-
• Nike is increasingly using social media and
commerce sales grew much
proprietary mobile applications to interact with
higher than industry growth
our consumers and as a means to enhance their
rates.
shopping experience

7
 26-08-2019

Adidas
• Adidas is the largest sportswear manufacturer
in Europe, and the second largest in the
world, after Nike.
• It is a German Company that designs and
manufactures shoes, clothing and accessories.
• Adidas also has the famous brand „Reebok‟
under its name.

MARKETING STRATEGY
• Endorses its products through :
1. Events with global reach: such as the FIFA World Cup, the UEFA EURO, the UEFA
Champions League. the Olympic Games, and the Boston and Berlin Marathons
2. High-profile teams: such as the national association football teams of Germany. Spain.
Argentina, Mexico Colombia, Belgium and Japan, as well as top clubs such as Manchester
United. Real Madrid, Bayern Munich, Juventus

8
 26-08-2019

• Strategic collaboration with Kanye West; a non-athlete celebrity that also proved to be
significant.

PUMA
• Puma, is a German multinational company that designs
and manufactures athletic and casual footwear, apparel
and accessories, which is headquartered in
Herzogenaurach, Bavaria, Germany.

• PUMA is the third largest sportswear manufacturer in

the world.

9
 26-08-2019

Sales

• The footwear sales segment for Puma has grown steadily

over the past few years along with other segments such as
apparel and accesories

• The e-commerce business recorded a far above-average

growth in 2018. This was brought about by, for example, the
expansion of the product range in online stores worldwide and
by targeted sales promotions online.
• E-commerce activities on special days in the online business
such as Singles‟ Day in China on November 11 and the
world‟s biggest online shopping day, known as “Black Friday /
Cyber Monday”, turned out to be particularly successful

Marketing Strategy
• PUMA endorses its products by associating itself with the biggest players of each sport
such as :
• Running and training
• Basketball
• Motorsport
• Golf

10
 26-08-2019

• Adidas is closest competitor of

Comparison Nike in the footwear segment,

but Nike stands number one by
far.
• Adidas‟ footwear segment is
growing steadily, with 360
million pairs of shoes produced
in 2018.
• Owing to the market dominance
of Nike and Adidas, Puma‟s
footwear sales have remained
relatively constant.

Emerging New Technologies

• Nike‟s HyperAdapt 1.0 : „Adaptive
Lacing‟ technology that tightens shoe laces
automatically through heel sensors.
• Adidas revolutionizing product creation
through software, hardware and molecular
science, coming to life with Adidas 4D.
• Under Armour‟s inbuilt sensors which
includes runner‟s pace, steps, distance,
stride and cadence.
• Digitsole smart shoes analyze fatigue,
heart beat, posture, health and calories. It
can be connected with Bluetooth device.

11
 26-08-2019

References
• Kaul, N. (2018, October). Smart Shoes: Innovations
revolutionizing the future of footwear. Retrieved from
https://www.prescouter.com/2018/10/smart-shoes-
innovations-footwear/
• Malani, G. (2015, August). Footwear Market by Type
(Athletic, Non Athletic), Mode of Sale (Retail Sales,
Online Sale) and Material (Leather,Non leather) -
Global Opportunity Analysis and Industry Forecast,
2014 - 2020. Retrieved from Allied Market Research:
https://www.alliedmarketresearch.com/footwear-market
• http://www.euromonitor.com/footwear-in-india/report
Footwear in India, 21 pages, Apr 2017
• Jogatar, J. (n.d.). Indian Footwear Industry Overview.
Retrieved from Start Up City:
http://www.startupcity.com/startups-talk/indian-
footwear-industry-overview-nid-2964.html

• Indian Footwear Industry Overview. (n.d.). Retrieved

from Footwears Infoline:
http://footwearsinfoline.tripod.com/ind_footwr_industry
_overview.htm
• http://marketrealist.com/2015/06/nba-apparel-deal-
makes-sense-nike/
• http://panmore.com/nike-inc-marketing-mix-4ps-
product-place-promotion-price-analysis
• https://www.marketing91.com/marketing-mix-adidas/
• https://s1.q4cdn.com/806093406/files/doc_financials/20
19/annual/nike-2019-form-10K.pdf
• https://www.adidas-group.com/en/investors/financial-
reports/#/2018/
• https://en.wikipedia.org/wiki/Adidas
• Nike Annual Report 2017-18
• Puma Annual Report 2017-18
• Adidas Annual Report 2017-18

12