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STUDY OF CONSUMER

BUYING BEHAVIOR IN NIKE SHOES.

SUBMITTED BY:

MITHILESH KHAILAR

SEMESTER V (2018-2019).
CHAPTER 1
INTRODUCTION
Nike products are already well-known brands through the world, with effective
advertisements and word of mouth, since customers tend to share their positive views with
their friends and family. After buying this Nike brand, consumers learn, and experience the
quality and see themselves that they got what they expected. Consumers’ formed attitudes
about the brand are buying a products that are comfortable, makes you feel good, and also
look cool in it and Nike satisfy them all. (Ugur)

The public feels that Nike over charge its consumers and make its profits but they should
decrease the prices which can attract the consumers to buy its products. Today, everybody
wants the products which are comfortable to wear, protect our feet and keep away from injury
without higher quality shoes it can harm our feet and cause injured. Sometimes Nike can
affect consumers to buy the product. Consumers can be influenced by three perspectives
cultural, social and personal factors. (Consumer behaviour in relation to premium products,
2015).

Young athletes can be the target market of Nike in the future. With its brand it has the
powerful position of influence with young people by launching the digital platform for
engaging the consumers to join it so that it may make better relationship with consumers
(Kearney, 2009)

If any company creates the good relationship with its consumers, so they must find out the
needs and wants of the consumers. As Nike has done this by providing the good customer
service and even when customer face any type of problem so they can send email to the Nike
for get rid from their problem related purchasing, Nike would solve their problems within
working days and customers can solve their problems with help of websites and sending them
emails. So this has made the consumers to have positive image of Nike in their minds which
can increase their purchasing decisions and behaviour towards the Nike products. (The
consumer decision process of Nike, 2015).

Nike, is an American multinational corporation that is engaged in the design, development,


manufacturing, and worldwide marketing and sales of footwear, apparel, equipment,
accessories, and services. The company is headquartered near Beaverton, Oregon, in
the Portland metropolitan area. It is the world's largest supplier of athletic
shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of
US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more
than 44,000 people worldwide. In 2014 the brand alone was valued at $19 billion, making it
the most valuable brand among sports businesses. As of 2017, the Nike brand is valued at
$29.6 billion. Nike ranked No. 89 in the 2018 Fortune 500 list of the largest United States
corporations by total revenue.

The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bower
man and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes
its name from Nike, the Greek goddess of victory. Nike markets its products under its own
brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike
Dunk, Air Max, Foam posited, Nike Skateboarding, Nike CR7, and subsidiaries including
Brand Jordan, Hurley International and Converse. Nike also owned Bauer Hockey (later
renamed Nike Bauer) from 1995 to 2008, and previously owned Cole Hana and Umbro. In
addition to manufacturing sportswear and equipment, the company operates retail stores
under the Nike town name. Nike sponsors many high-profile athletes and sports teams around
the world, with the highly recognized trademarks of "Just Do It" and the Swoosh logo.
Nike's world headquarters are surrounded by the city of Beaverton but are
within unincorporated Washington County. The city attempted to forcibly annex Nike's
headquarters, which led to a lawsuit by Nike, and lobbying by the company that ultimately
ended in Oregon Senate Bill 887 of 2005. Under that bill's terms, Beaverton is specifically
barred from forcibly annexing the land that Nike and Columbia Sportswear occupy in
Washington County for 35 years, while Electro Scientific Industries and Tektronix receive
the same protection for 30 years. Nike is planning to build a 3.2 million square foot
expansion to its World Headquarters in Beaverton. The design will target LEED Platinum
certification and will be highlighted by natural daylight, and a gray water treatment center.
Study of Statement.
Nike produces a wide range of sports equipment. Their first products were track running
shoes. They currently also make shoes, jerseys, shorts, cleats, etc. for a wide range of sports,
including track and field, baseball, ice hockey, tennis, association football (soccer), lacrosse,
basketball, and cricket. Nike Air Max is a line of shoes first released by Nike, Inc. in 1987.
Additional product lines were introduced later, such as Air Huarache, which debuted in 1992.
The most recent additions to their line are the Nike 6.0, Nike NYX, and Nike SB shoes,
designed for skateboarding. Nike has recently introduced cricket shoes called Air Zoom
Yorker, designed to be 30% lighter than their competitors'. In 2008, Nike introduced the Air
Jordan XX3, a high-performance basketball shoe designed with the environment in mind.
Nike sells an assortment of products, including shoes and apparel for sports activities like
association football, basketball, running, combat sports, tennis, American football, athletics,
golf, and cross training for men, women, and children. Nike also sells shoes for outdoor
activities such as tennis, golf, skateboarding, association football, baseball, American
football, cycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing, and other
athletic and recreational uses. Nike recently teamed up with Apple Inc. to produce
the Nike+ product that monitors a runner's performance via a radio device in the shoe that
links to the iPod Nano. While the product generates useful statistics, it has been criticized by
researchers who were able to identify users' RFID devices from 60 feet (18 m) away using
small, concealable intelligence motes in a wireless sensor network.
In 2004, Nike launched the SPARQ Training Program/Division. Some of Nike's newest shoes
contain Fly wire and Linarite Foam to reduce weight. The Air Zoom Vomero running shoe,
introduced in 2006 and currently in its 11th generation, featured a combination of ground
breaking innovations including a full-length air cushioned sole, an external heel counter, a
crash pad in the heel for shock absorption, and Fit Frame technology for a stable fit.
HISTORY OF NIKE

Founded as an importer of Japanese shoes, NIKE, Inc. (Nike) has grown to be the world's
largest marketer of athletic footwear, holding a global market share of approximately 37
percent. In the United States, Nike products are sold through about 22,000 retail accounts;
worldwide, the company's products are sold in more than 160 countries. Both domestically
and overseas Nike operates retail stores, including Nike Towns and factory outlets. Nearly all
of the items are manufactured by independent contractors, primarily located overseas, with
Nike involved in the design, development, and marketing. In addition to its wide range of
core athletic shoes and apparel marketed under the flagship Nike brand, the company also
sells footwear under the Converse, Chuck Taylor, All Star, and Jack Purcell brands through
wholly owned subsidiary Converse Inc. and sells under the brands Starter, Shaq, and Asphalt
in the discount retailer channel through another subsidiary, Exeter Brands Group LLC. The
firm also sells Nike and Bauer brand athletic equipment; Hurley surfing, skateboarding, and
snowboarding apparel and footwear; and Cole Haan brand dress and casual footwear. Nike
has relied on consistent innovation in the design of its products an d heavy promotion to fuel
its growth in both U.S. and foreign markets . The ubiquitous presence of the Nike brand and
its Swoosh trademark led to a backlash against the company by the late 20th century,
particularly in relation to allegations of low wages and poor working conditions at the
company's Asian contract manufacturers.
Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of
Oregon track athlete Phil Knight and his coach, Bill Bower man, on January 25, 1964. The
company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger, making
most sales at track meets out of Knight's automobile.
According to Otis Davis, a student athlete whom Bowerman coached at the University of
Oregon, who later went on to win two gold medals at the 1960 Summer Olympics,
Bowerman made the first pair of Nike shoes for him, contradicting a claim that they were
made for Phil Knight. Says Davis," I told Tom Brokaw that I was the first. I don't care what
all the billionaires say. Bill Bowerman made the first pair of shoes for me. People don't
believe me. In fact, I didn't like the way they felt on my feet. There was no support and they
were too tight. But I saw Bowerman make them from the waffle iron, and they were mine".
In 1964, in its first year in business, BRS sold 1,300 pairs of Japanese running shoes grossing
$8,000. By 1965 the fledgling company had acquired a full-time employee, and sales had
reached $20,000. In 1966, BRS opened its first retail store, located at 3107 Pico Boulevard
in Santa Monica, California next to a beauty salon, so its employees no longer needed to sell
inventory from the back of their cars. In 1967, due to rapidly increasing sales, BRS expanded
retail and distribution operations on the East Coast, in Wellesley, Massachusetts.
By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS
prepared to launch its own line of footwear, which would bear the Swoosh newly designed
by Carolyn Davidson.[15] The Swoosh was first used by Nike on June 18, 1971, and was
registered with the U.S. Patent and Trademark Office on January 22, 1974.
In 1976, the company hired John Brown and Partners, based in Seattle, as its first advertising
agency. The following year, the agency created the first "brand ad" for Nike, called "There is
no finish line", in which no Nike product was shown. By 1980, Nike had attained a 50%
market share in the U.S. athletic shoe market, and the company went public in December of
that year.
Together, Nike and Wieden+Kennedy have created many print and television advertisements,
and Wieden+Kennedy remains Nike's primary ad agency. It was agency co-founder Dan
Wieden who coined the now-famous slogan "Just Do It" for a 1988 Nike ad campaign, which
was chosen by Advertising Age as one of the top five ad slogans of the 20th century and
enshrined in the Smithsonian Institution. Walt Stack was featured in Nike's first "Just Do It"
advertisement, which debuted on July 1, 1988. Wieden credits the inspiration for the slogan
to "Let's do it", the last words spoken by Gary Gilmore before he was executed.
Throughout the 1980s, Nike expanded its product line to encompass many sports and regions
throughout the world.[21] In 1990, Nike moved into its eight-building World Headquarters
campus in Beaverton, Oregon. The first Nike retail store, dubbed Niketown, opened
in downtown Portland in November of that year.
Phil Knight announced in mid-2015 that he would step down as chairman of Nike in
2016. He officially stepped down from all duties with the company on June 30, 2016.
In a company public announcement on March 15, 2018, Parker said Trevor Edwards, a top
Nike executive who was seen as a potential successor to the chief executive, was
relinquishing his position as Nike's brand president and would retire in August.
Nike has acquired several apparel and footwear companies over the course of its history,
some of which have since been sold. Its first acquisition was the upscale footwear
company Cole Haan in 1988, followed by the purchase of Bauer Hockey in 1994. In 2002,
Nike bought surf apparel company Hurley International from founder Bob Hurley. In 2003,
Nike paid US$309 million to acquire Converse, makers of the Chuck Taylor All-Stars line of
sneakers. The company acquired Starter in 2004 and Umbro, known as the manufacturers of
the England national football team's kit, in 2008.
In order to refocus on its core business lines, Nike began divesting of some of its subsidiaries
in the 2000s. It sold Starter in 2007 and Bauer Hockey in 2008. The company sold Umbro in
2012 and Cole Haan in 2013. As of 2017, Nike owns two key subsidiaries: Converse
Inc. and Hurley International.
1.3 Company profile