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FINAL PROJECT REPORT

ON
COMPARTIVE STUDY OF CUSTOMER
AWARENESS & PROMOTIONAL
STRATEGIES BETWEEN
REEBOK & NIKE

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE


BACHELOR OF BUSINESS ADMINISTRATION

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ACKNOWLEDGEMENT

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TABLE OF CONTENTS

I. INTRODUCTION

II. NEED, OBJECTIVES, & SCOPE OF THE STUDY

III. RESEARCH METHODOLOGY

IV. DATA ANALYSIS

V. FINDINGS

VI. QUESTIONNAIRE

VII. BIBLIOGRAPHY

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INTRODUCTION

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INTRODUCTION
There are many different definitions for Brand and one of them, given by American
Marketing Association (AMA) is a brand is a name, term, sign, symbol or design or
a combination of them, intended to identify the goods and services of one seller and to
differentiate them from those of the competition.

According to wikipedia A brand includes a name, logo, slogan, and/or design


scheme associated with a product or service.

A brand is a symbolic embodiment of all the information connected to the


product and serves to create associations and expectations around it.

Brand recognition and other reactions are created by the use of the product or service
and through the influence of advertising, design, and media commentary.

Non-competing product or in another geographical area, this is referred to as brand


licensing. An employment brand is created when a company wants to build
awareness with potential candidates. In many cases, such as Google, this brand is an
integrated extension of their consumer.

WHAT IS BRAND EQUITY

The content and meaning of brand equity have been debated in a number of different
ways and for a number of different purposes, but so far no common viewpoint has
emerged (Vazquez et al., 2002; Keller, 2003) It can be discussed from the perspective
of the manufacturer, retailer, or the consumer.

While manufacturers and retailers are interested in the strategic implications of the
brand equity, investors are more sympathetic for a financially defined concept (Cobb-
Walgren and Ruble, 1995).

Proponents of the financial perspective define brand equity as the total value of a
brand which is a separable asset when it is sold, or included in a balance sheet

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(Feldwick, 1996). Alternative definitions adopting the same perspective consider
brand equity as the incremental cash flows which accrue to branded products over
unbranded products (Simon and Sullivan, 1993). When marketing practitioners use
the term brand equity, they tend to mean brand description or brand strength,
referred to as customer brand equity to distinguish it from the asset valuation
meaning (Wood, 2000).

The customer-based brand equity definitions approach the subject from the
perspective of the consumer whether it is an individual or an organization. They
contend that for a brand to have value it must be valued by consumers.

CONCEPTUAL FRAMEWORK

This study is done by using the consumer based equity model given by Kevin Lane
Keller (2001). Keller gave pyramid of consumer based equity which has six brand
building blocks and those are

1) Salience
2) Performance
3) Imagery
4) Judgment
5) Feelings
6) Resonance

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Above is a diagrammatic representation of kellers consumer based equity model

Brand equity, according to Keller, is the effect that brand knowledge has on consumer
response to the marketing of a brand, with the effect occurring when the brand is
known and when the consumer possesses favorable, strong and unique brand
associations (Keller,1993). The Customer-Based Brand Equity (CBBE) model
identifies four steps which denote questions asked by customers, and represent a
branding ladder, with each step dependent on achieving the previous one (Keller,
2001). These steps consist of six brand building blocks, with a number of sub-
dimensions (Keller, 1993). To build a strong brand, the aim is to reach the pinnacle of
the pyramid where a harmonious relationship exists with customers.

The first step of the CBBE model is to ensure the correct brand identity. Answering
the first question customers ask about brands - Who are you? - the purpose is to create
an identification of the brand, and an association with a specific product class or need
(Keller, 2003). The initial step consists of the brand building block, salience.

The second step answers the customer question - What are you? - By establishing
brand meaning in their minds, and linking brand associations with certain properties
(Keller, 2001). Two brand building blocks make up this step - performance and
imagery.

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The next step is brand response whereby the proper customer responses to the brand
identification and meaning are elicited (Keller, 2003). This step is achieved with the
judgments and feelings building blocks, and answers the question - What about
you?
When we consider judgment, quality, credibility, consideration and superiority are the
parameters to be considered.

Brand relationships constitutes the final step in the CBBE pyramid where brand
response is converted to an intense, active loyalty relationship between customers and
the brand (Keller, 2001). Addressing the customer question of - What about you and
me? - the final brand building block and the pinnacle of the pyramid is resonance.
For resonance loyalty, attachment, community, and engagement are the parameters to
be considered.

Kellers conceptual framework provides guidance in building, measuring and


managing brand equity.

In this study, Nike and Reebok are the two companies which are compared using the
Kellers CBBE model. With This model, this is an endeavor to find at what level is
the difference between the users of both brands. Those differences can further be used
by respective companies in their marketing strategies.

DETAILS OF COMPANIES

NIKE

Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the
United States. The company is headquartered in the Portland metropolitan area of
Oregon, near Beaverton. It is the world's leading supplier of athletic shoes, apparel
and sports equipment with revenue in excess of $16 billion USD in 2007. As of 2008,
it employed over 30,000 people world-wide. Nike is the only Fortune 500 company
headquartered in the state of Oregon.

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The company was founded in 1964 as Blue Ribbon Sports by Bill Bowerman and
Philip Knight, and became Nike in 1978. 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 Skateboarding, Team Starter, and
subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike
also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. In
addition to manufacturing sportswear and equipment, the company operates retail
stores under the Niketown 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.

ORIGINS AND HISTORY :-


Nike (originally known as Blue Ribbon Sports), was founded by University of Oregon
track athlete Phil Knight and his coach Bill Bowerman in January 1964 (Yahoo
finance NKE profile page as of Jan. 2 2008).

The company initially operated as a distributor for Japanese shoe maker Onitsuka
Tiger, making most sales at track meets out of Knight's car. Many top Oregon runners
began wearing the shoes, and the shoe's popularity grew quickly because of Kennan
Meyer. The company's first self-designed product was based on Bowerman's "chicken
and waffle" design in which the sole of the shoe was made by the pattern of a waffle
iron.

The company's profits grew quickly, and in 1966, BRS opened its first retail store,
located on Trenton Ave., with the relationship between BRS and Onitsuka Tiger
nearing an end, BRS prepared to launch its own line of footwear, which would bear
the newly designed Swoosh. [Sources: 'Swoosh' by J.B. Strasser and 'Just Do It' by
Donald Katz.]

The first shoe to carry this design that was sold to the public was a soccer cleat named
"Nike," which was released in the summer of 1971. In February 1972, BRS

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introduced its first line of Nike shoes, with the name Nike derived from the Greek
goddess of victory. In 1978, BRS, Inc. officially renamed itself to Nike, Inc.
Beginning with Ilie Nastase, the first professional athlete to sign with BRS/Nike, the
sponsorship of athletes became a key marketing tool for the rapidly growing
company.

By 1980, Nike had reached a 50% market share in the United States athletic shoe
market, and the company went public in December of that year. Its growth was due
largely to 'word-of-foot' advertising (to quote a Nike print ad from the late 1970s),
rather than television ads. Nike's first national television commercials ran in October
of 1982 during the broadcast of the New York Marathon. The ads were created by
Portland-based advertising agency Wieden+Kennedy, which had formed several
months earlier in April 1982.

Together, Nike and Wieden Kennedy have created many indelible print and television
ads and the agency continues to be Nike's primary today. 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 the campaign has been enshrined in the Smithsonian Institution.
Throughout the 1980s, Nike expanded its product line to include many other sports
and regions throughout the world.

On 23 October 2007, it was announced that the sports apparel supplier Umbro, known
as the manufacturers of the England national football team's kits, had agreed to be
bought by Nike in a deal said to be worth 285 million (~$600m).

PRODUCTS :-
Nike produces a wide range of sports equipment. Their first products were track
running shoes. They currently also make shoes, jerseys, shorts, baselayers etc. for a
wide range of sports including track & field, American football, baseball, tennis,
Association football, lacrosse, basketball and cricket. The most recent additions to
their line are the Nike 6.0 and Nike SB shoes, designed for skateboarding. Nike has
recently introduced cricket shoes, called Air Zoom Yorker, designed to be 30% lighter

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than their competitors'. In 2008, Nike introduced the Air Jordan XX3, a high
performance basketball shoe designed with the environment in mind. Nike positions
its products in such a way as to try to appeal to a "youthful....materialistic crowd". It
is positioned as a premium performance brand. However, it also engineers shoes for
discount stores like Wal-Mart under the Starter brand.

Nike sells a huge 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 are well known and popular in Youth culture, Chav Culture and Hip hop culture
as they supply urban fashion clothing. Nike recently teamed up with Apple Inc. to
produce the Nike+ product which monitors a runner's performance via a radio device
in the shoe which 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 away using small, concealable intelligence motes in a wireless sensor
network.

HEADQUARTERS :-
Nike's world headquarters are surrounded by the city of Beaverton, Oregon but are
technically within unincorporated Washington County.

MANUFACTURING :-
Nike has more than 500 locations around the world and offices located in 45 countries
outside the United States. Most of the factories are located in Asia, including
Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, Malaysia,
and Republic of Korea. Nike is hesitant to disclose information about the contract
companies it works with. However, due to harsh criticism from some organizations
like Barbie.com, Nike declared that beginning in 2009 they will begin to provide
minimum wages to their workers and full health insurance for every employee that is
employed under the Nike Company.

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HUMAN RIGHTS CONCERNS :-
In the 2003 documentary The Corporation, Chris Belmonte, director of the National
Labor Committee shows what he says are Nike's internal pricing documents. The
documents show that the workers in a factory in the Dominican Republic average
precisely 6.6141 minutes to make a shirt, a bit more than 9 shirts an hour. These
figures also appear in the book The Corporation: The Pathological Pursuit of Profit
and Power by Joel Bakan, on which the documentary is based.

Nike has been criticized for contracting with factories in countries such as China,
Vietnam, Indonesia and Mexico. Vietnam Labor Watch, an activist group, has
documented that factories contracted by Nike have violated minimum wage and
overtime laws in Vietnam as late as 1996, although Nike claims that this practice has
been halted. The company has been subject to much critical coverage of the often
poor working conditions and exploitation of cheap overseas labor employed in the
free trade zones where their goods are typically manufactured. Sources of this
criticism include Naomi Klein's book No Logo and Michael Moore's documentaries.

Nike was criticized about ads which referred to empowering women in the U.S. while
engaging in practices in East Asian factories which some felt disempowered women.
In the 1990s, Nike faced criticism for use of child labor in Cambodia and Pakistan in
factories it contracted to manufacture footballs (Soccer balls). Although Nike took
action to curb or at least reduce the practice of child labor, they continue to contract
their production to companies that operate in areas where inadequate regulation and
monitoring make it hard to ensure that child labor is not being used.

These campaigns have been taken up by many college and universities, especially
anti-globalisation groups as well as several anti-sweatshop groups such as the United
Students Against Sweatshops.[citation needed] Despite these campaigns, however,
Nike's annual revenues have increased from $6.4 billion in 1996 to nearly $17 billion
in 2007, according to the company's annual reports.

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ENVIRONMENTAL REPORT :-
According to New England-based environmental organization Clean Air-Cool Planet
report, Nike is one of the top 3 companies (out of 3 companies) on the top of the list
that the survey conducted about climate-friendly companies. It probably received a
high ranking because of its Nike Grind program which closes the product lifecycle.
Nike has been praised for its concern for global climate change by groups like
Climate Counts.

MARKETING STRATEGY :-
Nike's marketing strategy is an important component of the company's success. Nike
is positioned as a premium-brand, selling well-designed and expensive products. Nike
lures customers with a marketing strategy centering around a brand image which is
attained by distinctive logo and the advertising slogan: "Just do it". Nike promotes its
products by sponsorship agreements with celebrity athletes, professional teams and
college athletic teams.

ADVERTISING :-
Extensive advertising in print, television and other media has included several
controversies that have gathered substantial publicity.

PLACE :-
Nike sells its product to more than 25,000 retailers in the U.S. (including Nike's own
outlets and "Niketown" stores) and in approximately 160 countries in the world. Nike
also sells its own products at nike.com that allows customers to design shoes and
directly delivers them from manufacturer to your house. Nike sells its products in
international markets through independent distributors, licensees, and subsidiaries.

SPONSORSHIP :-
Nike has a number of celebrity athletes and professional teams to focus attention on
their products. Nike has signed top athletes in many different sports such as
professional football (soccer) players,Guillermo Ochoa, Cristiano Ronaldo, Wayne
Rooney, Ronaldo, Robinho, Ronaldinho, and Mia Hamm, basketball players LeBron

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James, Kobe Bryant,Penny Hardaway Manu Ginobili and Vince Carter, American
football players Brian Urlacher and LaDainian Tomlinson, cyclist Lance Armstrong,
golfer Tiger Woods. tennis players Serena Williams, Roger Federer, Rafael Nadal,
John Isner and Maria Sharapova, skateboarder Paul Rodriguez Jr., boxer Manny
Pacquiao, track athlete Alan Webb, and Formula One racers Felipe Massa and
Michael Schumacher. Nike's first professional athlete endorser was Romanian tennis
player Ilie Nstase, and the company's first track endorser was distance running
legend Steve Prefontaine. Pre was the prized pupil of the company's co-founder Bill
Bowerman while he coached at the University of Oregon. Today, the Steve
Prefontaine Building is named in his honor at Nike's corporate headquarters.

REEBOK
Reebok International Limited is a British producer of athletic footwear, apparel, and
accessories and is currently a subsidiary of Adidas. The name comes from
Afrikaans/Dutch spelling of rhebok, a type of African antelope or gazelle. The
company, founded in 1895, was originally called Mercury Sports but was renamed
Reebok in 1958. The company's founders, Joe and Jeff Foster, found the name in a
dictionary won in a race by Joe Foster as a boy; the dictionary was a South African
edition, hence the spelling.

Reebok surged in popularity in 1982 after the introduction of the Freestyle athletic
shoe, which was specifically designed for women and came out when the aerobics
fitness craze started. Not only was the Reebok Freestyle popular as athletic wear, but
also on the streets as casual wear because of its comfort and styling. As a result the
Freestyle became an icon of the 1980s fashion scene with hi-top versions (including
two velcro straps at the top) and colors including white, black, red, yellow, and blue.
Reebok continues to produce the Freestyle to this day as it is popular with
cheerleading, aerobic dancing, the gym, and other consumers.

Following the height of the Freestyle success, Reebok also introduced a popular
athletic shoe for men, called the Ex-O-Fit. Similar to the Freestyle, it came in low-top
and hi-top versions; however, unlike the Freestyle hi-top with two velcro closure

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straps, the Ex-O-Fit only had one strap. One of the designers of this early footwear
was the founder's son, David Foster.

HUMAN RIGHTS AND PRODUCTION DETAILS :-


In the past, Reebok had an association with outsourcing through sweatshops, but
today it claims it is firmly committed to human rights. In April 2004, Reebok's
footwear division became the first company to be accredited by the Fair Labor
Association. In 2004, Reebok also became a founding member of the Fair Factories
Clearinghouse, a non-profit organization dedicated to improving worker conditions
across the apparel industry.

Supplier information, according to the Reebok website as of May


2007
"Footwear Reebok uses footwear factories in 14 countries. Most factories making
Reebok footwear are based in Asiaprimarily China (accounting for 51% of total
footwear production), Indonesia (21%), Vietnam (17%) and Thailand (7%).
Production is consolidated, with 88% of Reebok footwear manufactured in 11
factories, employing over 75,000 workers."
"Apparel Reebok has factories in 45 countries. The process of purchasing products
from suppliers is organized by region. Most (52%) of Reebok's apparel sold in the US
is produced in Asia, with the rest coming from countries in the Caribbean, North
America, Africa and the Middle East. Apparel sold in Europe is typically sourced
from Asia and Europe. Apparel sold in the Asia Pacific region is typically produced
by Asian-based manufacturers."

ENDORSEMENTS :-
The company holds exclusive rights to manufacture and market both authentic and
replica uniform jerseys and sideline apparel of the teams of the National Football
League since 2002, the Canadian Football League since 2004, and is the official shoe
supplier to the NFL and Major League Baseball. In addition Reebok acquired official
National Hockey League sponsor CCM in 2004, and is now manufacturing ice hockey
equipment under the CCM and RBK brands, and has signed popular young stars
Sidney Crosby and Alexander Ovechkin to endorsement deals (Crosby for Rbk,

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Ovechkin for CCM). Reebok has phased out the CCM name on NHL authentic and
replica jerseys in recent years, using the Reebok logo since 2005. Reebok is also
endorsed by Allen Iverson, Carolina Klft, Amelie Mauresmo, Nicole Vaidisova, Ivy
and Amir Khan.

It maintains its relationship with its origins in England through a long-term


sponsorship deal with Bolton Wanderers, a Premiership football club. When the team
moved to a brand new ground in the late-1990s, their new home was named the
Reebok Stadium. Several other English clubs had Reebok sponsorship deals up until
the purchase by Adidas, but most have since switched to either the parent brand
(which has a long history in football) or another company altogether.

In 2005, Reebok also signed an exclusive agreement to design and supply all 8 team
home and away strips for the new Australian A-League competition. Although not an
expensive deal, this partnership is paying huge dividends for Reebok, due to the
growing popularity of football and the league in the area. An estimated 125,000
jerseys have been sold in Australia,a record for a single league's sales in a year for a
sports manufacturer.

Reebok sponsors five teams in the Australian Football League, those being the
Fremantle Football Club, the North Melbourne Football Club, the Melbourne Football
Club, the Port Adelaide Football Club and the Richmond Football Club, the latter two
beginning their association from the 2007 season. Reebok has supplied rugby league
teams the Melbourne Storm, Manly Sea Eagles and the Gold Coast Titans with club's
kits and other merchandise.

In rugby union, Reebok sponsors the Wales national team, the last team to date to win
a Grand Slam in the Six Nations Championship, and the Tasman Makos in New
Zealand's domestic competition, the Air New Zealand Cup.

In 2006, current Barcelona and France striker Thierry Henry (then playing for Arsenal
FC) signed a deal to join the "I Am What I Am" campaign on August 1, 2006. Ryan
Giggs has also done "I Am What I Am" commercials. Also, on August 1 2006, Andriy
Shevchenko started his endorsement deal with the company.

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The company also holds sponsorships with CD Guadalajara, and Brazilian clubs
Internacional, So Paulo FC and Vasco da Gama.

Several international cricketers, such as Pakistani skipper Shoaib Malik, Pakistani


batsman Abdur Razzaq, Sri Lankan Captain Mahela Jayawardene, Indian captain
Mahendra Singh Dhoni,Bangladeshi Captain Mohammad Ashraful, Indian batsmen
VVS Laxman and Rahul Dravid, Bangladeshi cricketers Mohammad Rafique,
Habibul Bashar and Chris Gayle of the West Indies, endorse Reebok.

They are supplied with Reebok cricket shoes, as well as with cricket bats marked with
the Reebok brand in the cases of Malik, Dhoni, Laxman, and Gayle. In fact, these bats
are actually made by Reebok. In September, 2007 it appeared that Reebok had also
signed Sanath Jayasuriya of Sri Lanka. Either that, or Sanath simply decided to start
using Reebok products.

Rapper Jay-Z became the first non-athlete to get a signature shoe from Reebok. The
"S. Carter Collection by Rbk" was launched in November 21, 2003 and the "S.
Carter" sneaker became the fastest selling shoe in the company history. Later Reebok
made a deal with rapper 50 Cent to release a line of G-Unit sneakers and artists like
Nelly and Miri Ben-Ari have become spokespersons for the company.

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NEED,
OBJECTIVE
& SCOPE
OF THE STUDY

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NEED OF THE STUDY :-

Marketing practitioners and academics alike regard brand equity as a platform upon
which to build a competitive advantage, future earnings streams, and shareholder
wealth (Keller, 1998; Kerin and Sethuraman, 1998). According to Keller (1993) there
have been two general motivations for studying brand equity. One is a financially
based motivation to estimate the value of a brand more precisely for accounting
purposes (in terms of asset valuation for the balance sheet) or for merger, acquisition,
or divestiture purposes. Second reason for studying brand equity arises from a
strategy-based motivation to improve marketing productivity. This study will help us
in answering many questions which are on the top of mind of both financial as well as
marketing executives. Few of those are

1. How is my brand doing versus competition? i.e. share of equity provides a


customer-based understanding of a brands position in financial terms.

2. Where does my offering stand in relation to what the customer wants? i.e. study
will indicate how many in your customers believe your brand has the strongest value
proposition. It also enables comparisons of your value proposition strength to that of
competitive brands.

3. What elements of the marketing mix will make my brand stronger? i.e. changes in
equity measures over time can be related (mathematically or anecdotally) to
marketing activities to evaluate their effectiveness in building the brand.

4. What are the leading indicators for problems with my brand? i.e. changes in
purchase trends can identify softening in brand equity before it is manifested in other
measures.

5. How can I optimize my positioning and other strategic marketing decisions? i.e.
these are just a few; study of Brand Equity can open so many locks that no other
concept can even relate to in the field of business.
If we sum all the reasons for the need of this study in just two words then the answer
is for Brand Self Analysis.

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OBJECTIVES OF THE STUDY :-

The main objective of the project are-


To find out the customer awareness Reebok & Nike
To know the market share of those companies
To know the taste and preference level of customer towards both of brands
To study the promotional strategies used by those companies
To know the customer preference of Reebok over Nike

SCOPE OF THE STUDY :-


1) Market Survey is restricted to the respondents of Chandigarh.
2) Nike and Reebok are considered for Brand tracking study.

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RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY

Marketing Research is a systematic and objective process of identifying and


formulating the marketing problems, setting research objectives and methods for
collecting editing, coding, tabulating, evaluating, analysis, interpreting and presenting
data in order to find justified solutions to these problems. Planning provides a
framework within which the goals of research are to be achieved. It facilitates the
smooth sailing of the various research operations, thereby, making research as
efficient as possible the plan and procedure of any research study is bound up with its
purpose. The purpose of the present study is to study the concept of Brand Equity and
measure it.

Effective marketing research involves the following steps:

1. PROBLEM DEFINITION:
The most important phase of any research is the definition of the problem to be
addressed. It is said that a problem well defined is the problem solved. The
problem for the present study can be precisely stated as To Conduct Brand
Tracking Study for Nike and Reebok.

2. NATURE OF THE STUDY:


The study is both exploratory and descriptive in nature. Firstly, exploratory study
was conducted to find out basic information regarding concept of Brand Tracking.
The exploratory study was helpful in understanding the concept of Brand Equity
and formulating the problem definition. Further exploratory study helped in
finding the drivers of Brand Equity and way to implement CBBE model given by
Keller (2001). After carrying out the exploratory research, descriptive study was
carried out to track Nike and Reebok brands.

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3. DATA COLLECTION METHOD:

PRIMARY DATA
Primary data was collected through the structured questionnaires by survey method.
The questionnaires was personally dispersed to the respondents to collect the relevant
information after a pilot study for identifying and refining of the measurement items
to be used for the study. Face to face Interviews were conducted wherever and
whenever necessary.

SECONDARY DATA
Secondary data was collected to frame the objectives of the study, to understand the
gap in literature and was used to study the model given by Kevin Lane Keller (2001)
along with other concepts about brands. The various sources of secondary data were:
magazines, newspapers, journals, articles, books, previous researches etc.

4. SAMPLE SIZE AND SAMPLE DESIGN:


Judgment sampling technique was used to collect data from the respondents. The
sample size was 100 respondents. This did not include the respondents (10-15), which
were used for pilot study.

5. TOOLS AND TECHNIQUES USED:


Pie Charts
A pie chart (or a circle graph) is a circular chart divided into sectors, illustrating
relative magnitudes or frequencies or percents. In a pie chart, the arc length of each
sector (and consequently its central angle and area), is proportional to the quantity it
represents. Together, the sectors create a full disk. It is named for its resemblance to a
pie which has been sliced.

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LIMITATIONS OF THE STUDY

All research studies have their limitations and this study is no exception. In
designing the study attempt will be to make it as scientific as possible, the present
study nevertheless will have following limitations.

1) The potential for data inaccuracies due to question misunderstanding and


item misrepresentation to certain responses on the part of participant does
exist. Bottom line is that Errors due to Biases will be hard to eliminate.

2) Responses will be solicited from the customers of Chandigarh. The


perception of people in this area may vary from those of the rest of India.

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DATA ANALYSIS

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DATA ANALYSIS :-
The present study was undertaken with the purpose of tracking Nike and Reebok
brands. The raw data for the study was obtained with the help of survey. In order to
screen the data for meaningful purpose and to track the brands, data was analysd by
various statistical techniques. An attempt has been made to relate the outcome of the
analyses to the objectives of the research so as to arrive at the meaningful
conclusions. As such results were obtained with the help of statistical tools like t-test,
chi square test, etc. Descriptive analysis was used to present the profile of the
respondents. It includes analysis of average, frequency, percentage of data value for
each of the variables. An independent sample t-test was conducted to compare the
various dimensions of brand tracking across Nike and Reebok. For the sake of
convenience and keeping in view the nature and objectives of the study, the results
have been presented into two sections.

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SECTION A
Descriptive Analysis:-

Descriptive analysis was done to present a profile of the respondents and also to find
out the mean scores and standard deviation for the items in Brand Tracking study.

Customer Profile :-
The success of different brands in formulating different marketing strategies largely
depends on maintaining an up-to-date profile information on the customers in the
form of customer- based data. The availability of such a comprehensive profile
provides the brand managers with the strong basis for designing effective plans and
programs regarding the marketing of brands. The questionnaire included a section on
customers profile. It included customers age, income, educational level, profession,
and other socio-demographic information. Tables below present a comprehensive
profile of the brand consumers, who participated in this research study. A total of 100
questionnaires were filled by consumers. it can be seen in the table 1, the sample
consists of more males( 89%) than females(11%). Majority of the respondents ( 98% )
are in the age group of 20- 30 years. Most of the respondents are either graduates
(42%) or post graduates (43%). 75% of the respondents are students and the
maximum respondents family income was between Rs. 30000 to 40000 per month.

Of the total 100, 50% that is 50 were the users of Nike and other 50% were the users
of Reebok. As a whole sample is skewed towards the more educated youth, this is not
surprising considering the awareness about education plus India is the youngest
country in the world with 75% population below 25%.

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Table 1
1.) Gender Profile of the Respondents

Cu
Frequency Percent Valid Percent P
Male 89 89.0 89.0
Female 11 11.0 11.0
Total 100 100.0 100.0

Out of total 100 respondents 89% were males and rest 11% were females.

Table 2

2.) Age Profile of respondents

Frequency Percent Valid Percent


Below 20 6 6.0 6.0
20 - 30 Years 92 92.0 92.0
41 - 50 Years 1 1.0 1.0
Above 50 Years 1 1.0 1.0
Total 100 100.0 100.0

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Out of 100 respondents 6 were below 20 years of age, 92 were between 21 to 30
years of age, 1 was between age of 41 to 50 and 1 above 50.

Table 3
3.) Educational Profile of the Respondents

Frequency Percent Valid Percent


Under Matric 1 1.0 1.0
Matric 3 3.0 3.0
Under Graduate 11 11.0 11.0
Graduate 42 42.0 42.0
Post Graduate 43 43.0 43.0
Total 100 100.0 100.0

Out of 100 respondents 4 were under matric, 11 under graduates, 42 were


graduates and 43 were post graduates.

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Table 4
4.) Occupational Profile of the Respondents

Frequency Percent Valid Percent


Student 75 75.0 75.0
Businessman 5 5.0 5.0
Pvt Employee 19 19.0 19.0
HouseWife 1 1.0 1.0
Total 100 100.0 100.0

Out of 100 respondents 75 were students, 5 were businessman, 19 were private


employees and 1 was housewife.

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Table 5

5.) Family Income Profile of the Respondents

Frequency Percent Valid Percent


<10000 7 7.0 7.0
10000 - 20000 11 11.0 11.0
20001 - 30000 16 16.0 16.0
30001 - 40000 37 37.0 37.0
above 40000 29 29.0 29.0
Total 100 100.0 100.0

Out of 100 respondents monthly family income, 7 were below Rs. 10000, 11
between Rs 10000 and 20000, 16 between Rs 20001 and 30000, 37 between Rs
30001 and 40000 and 29 above Rs. 40000.

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Table 6

6.) Brands in the Study

Frequency Percent Valid Percent


Nike 50 50.0 50.0
Reebok 50 50.0 50.0
Total 100 100.0 100.0

Out of 100 respondents 50 were Nike users and rest 50 were Reebok users.

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SECTION B
Table below shows the mean and the standard deviation for the individual features of
Brand Tracking study. Among the different parameters of brand tracking study, mean
scores for the likeability and toughness were maximum (Brand Judgment and Brand
Imagery), followed by quality and spirit (Brand Judgment and Brand Imagery).
Overall brand performance and brand imagery are given the higher scores compared
to brand judgment, brand feelings and brand resonance.

If we consider the dimensions individually then the highest mean scores in the
respective dimensions were given to

1) Likeability Brand Judgment


2) High Quality -- Brand Performance
3) Toughness -- Brand Imagery
4) Self Respect -- Brand Feelings
5) Other merchandise -- Brand Resonance

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SECTION C
Nike and Reebok: A comparison of various dimensions

Customer Profile
This section deals with the results analyzed to study the variation of responses for
different brand dimensions for Nike and Reebok. The data collected was analyzed
according to customer use of brands, Nike (Group 1) and Reebok (Group 2). Table
below shows the sample distribution between the two brands as it relates to age,
gender, education, monthly income and occupation. In the sample of 100, half were
for Nike and other half for Reebok.

Table 1
Characteristics of the sample
AGE Nike Reebok Total
Below 20 4 2 6
21 - 30 Years 44 48 92

31 - 40 Years 0 0 0

41 - 50 Years 1 0 1

Above 50 Years 1 0 1
50100

50

GENDER Nike Reebok Total

Male 48 41 89

Female 2 9 11

50 50 100

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EDUCATION Nike Reebok Total

Under Matric 1 3 4

Under Graduate 6 5 11
Graduate 24 18 42

Post Graduate 19 24 43

50 50 100

MONTHLY
Nike Reebok Total
INCOME
Less than Rs.10000 2 5 7

Rs 10000 - 20000 4 7 11
Rs 20001 - 30000 7 9 16
Rs 30001 - 40000 19 18 37

Above Rs 40000 18 11 29

50 50 100

OCCUPATION Nike Reebok Total

Student 33 42 75

Businessman 3 2 5

Pvt Employee 13 6 19

House Wife 1 0 1
50 50 100

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35
FINDINGS

36
FINDINGS

It has been found that there has significant difference in the following parameters of
Nike and Reebok:
Knowledgeability
Likeablity
Stylish and Attraction
Quality
Daring
Success
Social Approval
Out of the above first two are in the Brand Judgment stage, next two are in Brand
Performance stage, next two belongs to Brand Imagery and last one is related to
Brand Feelings. Respondents of both the brands were of same opinion at the Brand
Resonance level.
Considering the arithmetic means of the responses they are lowest for Brand
resonance. That means that though respondents dont differ on their viewpoint for the
respective brands but they are unable to be in resonance with the brand. The low
scores for this stage is a hint that tells us about the penetration level of Nike and
Reebok in Indian context. There are still tasks to be accomplished to get consumers to
be brand loyal. This is for both the brands as both brands consumers have not
achieved high level in Brand resonance. Low scores indicate that consumers are yet to
achieve the highest level of brand loyalty, which means that any competitor who can
attain brand resonance can give Nike and Reebok a hard competition.
For rest of the stages i.e. Brand judgment, performance, imagery and feelings,
consumers were able to relate with some of the parameters but still there are loopholes
which needs to be covered for achieve higher brand equity for better brand loyalty.
Companies, i.e. Nike and Reebok can use these parameters to differentiate between
themselves and create a specific image in the minds of the customer. Better the
differentiation better will be the companys position to attract customers with the
differentiating factor and more will be the brand loyalty.

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QUESTIONNAIRE
I, __________________ student of BBA at Govt. P.G. College, Dharamshala is
conducting a research project on Comparative study of customer awareness &
promotional strategies between Reebok & Nike. Kindly cooperate by filling the
questionnaire. Following are certain statements regarding brand This Brand. Kindly
state your agreement or disagreement for the same.

Given below are set of statement kindly give your choice by circling the option.
1 2 3 4 5
Strongly Moderately Neither agree Moderately Strongly
disagree disagree nor disagree agree agree
1. My attitude is highly favorable towards the Brand 1 2 3 4 5
2. The Brand satisfies my needs 1 2 3 4 5
3. I will recommend the Brand to others 1 2 3 4 5
4. The Brand is a good value for money 1 2 3 4 5
5. The Brand is worth a premium price 1 2 3 4 5
6. The Brand offers benefits that other brands cannot 1 2 3 4 5
7. The Brand products are superior to other brands 1 2 3 4 5
8. The Brand satisfies my basic needs more than any 1 2 3 4 5
other brand.
9. The Brand is innovative 1 2 3 4 5
10. The Brands products are stylish and attractive 1 2 3 4 5
11. The Brands products are of high quality 1 2 3 4 5
12. People I respect and admire use the Brands products 1 2 3 4 5
13. I like people who use the Brands products 1 2 3 4 5
14. The Brand is Down to earth 1 2 3 4 5

Name: ____________________________ Sex M/F ________________________

Age (years):
a) Below 20 Years b) 20-30 Years c) 30-40 Years d) 40-50 Years
e) above 50 Years

Education:
a) Under Matric b) Matric c) Under Graduate d) Graduate
e) Post-Graduate f) Others ________

Monthly Family Income

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a) <10,000 b) 10,001 20000 c) 20001-30000 Income (Rs):
d) 30001-40000 e) 40001 & above
Occupation:
a) Student b) Businessman c) Govt. Employee
d) Private Employee e) House Wife f) Others

39
BIBLIOGRAPHY

Research methodology,Motit Gupta,navdeep Aggarwal.

Chandon, Pierre (2003), Note on Measuring Brand Awareness, Brand Image,


Brand Equity and Brand Value Working Paper Series, 1-10, INSEAD

Web Sites-

http//www.reebok.com
http//www.nike.com

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