Introduction

 The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to
2011.
 Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07.
 Presently, the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total
Indian footwear retail market.
 By products, the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of
the total footwear retail market.
 As footwear retailing in India remain focused on men's shoes, there exists a plethora of opportunities in the exclusive
ladies' and kids' footwear segment
 The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production, abundant
raw material, and has huge consumption market.
 The footwear component industry also has enormous opportunity for growth to cater to increasing production of footwear
of various types, both for export and domestic market.

Khadim
Footwear major Khadim India Ltd is looking at premiumisation of its sub-brands, which has surpassed the parent brand in terms
of revenue, to boost growth and margins.

The nine sub-brands of Khadim, including British Walkers, Lazard, Cleo, Sharon and Softouch clocked sales of Rs 256 crore
out of the Rs 456-crore retail revenue as of March 31, 2017.
"We are undergoing premiumisation with our sub-brands for consumers aspiring to move up from mass segment to affordable
fashion. However, we will restrict our sub-brands to the tier-II cities," Khadim India CFO Ishani Ray told .

The Khadim brand alone will cater to the tier-III cities, with most products priced below Rs 500, she said.

Products of the city-based company's sub-brands will be capped at Rs 3,500.

Khadim has 150 stores in metros and mini-metros, 109 in tier-I cities, 124 in tier-II and 446 in tier-III towns.

According to CMD Siddhartha Roy Burman, the footwear maker will continue focusing on retail, distribution and manufacturing
through the asset-light model.

Khadim will will issue its maiden Rs 543-crore IPO on November 2, primarily to allow exit by PE investor Fairwinds, which
currently holds 34 per cent stake in the company after investing Rs 90 crore in 2013.

The IPO in the price band of Rs 745-750 a share of Rs 10 each is valued at Price Earning (PE) multiple of 43.7 times of FY17
earnings.

WOODLAND
HISTORY OF THE COMPANY

• 1960: Aero club started as a small manufacturing unit in Delhi. They were among the first to
export shoes to the U.S.S.R

• 1962: They ventured into retailing with an outlet at a prime location in Delhi.
• 1972: They set up the first fully mechanized modern shoe factory in India (with German
Machinery) to augment existing capacities, in view of the growing export demand.

• 1992: The Company launched Woodland brand and acquired winter boot factory in Quebec,
Canada to cater to the Canadian and U.S. Markets.

• 1994: Commissioned manufacturing plant for Reebok for export to U.S.A.

• 1997: Commissioned manufacturing unit for apparels, adding to the range of Woodland
products.

• 2002: Woodland becomes a national leader in premium category shoes, apparels and
accessories. Started sourcing operations from South East Asian Countries. Opened offices in
China and Hong Kong, facilitating the heavy domestic demand for new products and
development.

• 2007: Total No. of exclusive showrooms targeted to touch the two hundred mark.
What does woodland stands for?

• The spirit of adventure.

• Woodland not only believes in making the best quality products but also creating outstanding communication ideas.

• Woodland is an Indian Brand and they have done it with Indian Footwear.

• Woodland never wanted to be an ordinary shoe so till now this brand is concentrating on the premium end (above Rs 1500
shoes) of 2000 crore casual shoe segment.

• Woodland targets the up market segment and is positioning itself as a rugged high quality premium casual shoe.

• The logo of Woodland was a status symbol during the nineties.

• The brand carefully presented itself as an outdoor trekking kind of shoe which captured the imagination of Indian youth
True to its price, the brand delivered its promise on quality which ensured that the brand is perceived as a value for
money brand.
TYPES AND PRICE OF THE PRODUCT

Formal shoes:-
Woodland has a wide variety of formal shoes starting from Rs. 1445 onwards. These
shoes are light in weight, comfortable and attractive.

Casual shoes:-
Woodlands casual shoes are more in demand among the youths. They provide good quality,
comfort and classic look to their customers. These shoes are available for Rs.1145 onwards.
Shoes are available in full size from 1 to13
.
Athletic shoes:-

These shoes are beautifully designed and they provide ankle coverage,
lightweight and durability to their customers. Shoes are available for Rs.1545
onwards. Rs.2795

shoes:-
Trekking shoes are the most known shoes in the market.
These shoes have excellent foot grip. They also provide
good cushioning and deep treaded sole for all terrains,
dust, mud, ice, water. These shoes are available for Rs
1595 onwards
Rs.2695
Narrow edge shoes:-

Narrow edge shoes are very in now days. These are easy pointy shoes made out of
swed leather, which looks accurate at normal distance. They are not as difficult to
walk in as it looks. These shoes are available for Rs. 1945 onwards.

Sandals:-

These sandals are stylish in design with fantastic colours option, well padded soles
and great grip. The company uses smooth and exotic leather for making of this
shoe. They are available for Rs. 1495 onwards.
USP
FEATURES OF THE PRODUCT

Quality worth the money spent on :

o Price of woodland shoes starts from Rs 1000 onwards.
o These shoes are very beautifully designed and fashionable.
o These shoes are available for around Rs 1450 and the purchase is worth of quality.
Very trendy and fashionable:
If you are ready to spend around Rs 2,000/- or above Woodland offers you a wide variety of trendy and fashionable shoes.
You could be sure to acquire stone & pearl worked sandals best suited to your occasion and kid’s shoes are also available in
different colures like red, velvety-brown, white, blue etc. but they are priced high.

Long and durable:

Woodland shoes are really meant for longevity. They are classically manufactured for
the toughest meanders. Due to its longevity and durability woodland shoes are
preferred by those who don’t believe in frequent changing of shoes.
 Padded Layers to provide comfort:
Woodland shoes also provide the customers with padded layers in the shoes in order
to provide much more comfort than other shoes.

Fabric lined for soothing experience:

In some of there models woodland shoes also provide fabric linings for soothing
experience to there customers. This is a unique feature of there shoes.

Incredible range:
Woodland shoes also provide incredible range of shoes to there
customers so, that they can have a variety of choice.
SERVICES PROVIDED TO THE CUSTOMERS

Warranty period:-
The Showrooms also offer warranty for the footwear ranging from 6 months to almost 1 ½
years depending upon the shoes price.

After sales services:-

Woodland showroom also provides their customers with a satisfactory after sales services. They
give complementary gifts to the customers on a specified purchase made by them. It includes
shoe polish, shoe shiner, belts and other accessories too.

Special discount offer:-

Woodland generally provides special discount offers to the customers which mostly includes
12% discount on the purchase made. They also give discounts on special occasions such as
ganpati, diwali, dusshera.
 Shoe mela:-
Woodland also conducts shoe mela at various cities where they sell there shoes at discounted
rate. They have conducted shoe mela at Hyderabad, Chennai, Bangalore and many more.

Online purchase:-
Woodland also provides a very convenient facility of online purchasing to their customers.
Under this facility customers can purchase and pay online through internet.
SWOT ANALYSIS

STRENGTHS:-
The strength of the company’s production with in its captive facilities allows
Woodland to produce aesthetically designed, sturdy and durable shoes.

WEAKNESSES:-
Woodland is certainly not for people who desire to keep on changing their
footwear frequently having been fed up with the same design.
The athletic and leather shoes do start getting dented within a year.
The price offered by woodland shoes is quite expensive.
As they are more into formal shoes so youngsters are less attracted.
OPPORTUNITIES:-

They can expand their market more by covering and focusing on developing
in different areas.
They also have a great scope to expand their market in sports footwear.
They can also target higher middle class people by launching new range
of shoes between Rs. 750 to Rs. 1000.
As they mainly deal in leather shoes so, they can also enter into manufacturing
of all seasons shoes especially water proof shoes.
They should increase the number of production units to earn more profits.
THREATS:-

Woodland shoes face a big threat from

organized as well as unorganized sector.
In organized sector following are the brands:-
· Metro
· Bata
· Red tape
· Liberty
· Lee cooper.
In unorganized sector following are
the brands:-· Trekking
· Nicholas

BATA
 1931- Shoe Production Plant in Konnagar, West Bengal
 1934 - Manufacturing City named Batanagar
 Later factories in Digha near Patna

Bata currently:
 Over 1250 retail stores in 500 cities
 38 new stores in 3rd quarter of 2012
 Largest store of 10,000 sq.ft is in Borivili
Brands of bata:
 Segmentation:
Segmentation – Basic Segmentation

Bata
Footwear

Men Women Kids

-Ambassador -Marie Claire -Bubblegumers

-Mocassino -Naturalize
-Weinbrenner
Demographics – Income:
 Low Medium High
(Rs 299 – 799) (Rs 800 – 1499) (Rs
1500 onwards)

Bata & I North Star

Ambassador
Comfit Power Hush
Puppies
Bubblegummers
Behavioral - (Occasions To Use):
Formal: Mocassino
Footin
Naturalizer
Casual: North Star
Sports: Power
Outdoor: Weinbrenner
Footin – affordable fashion and trendy style Weinbrenner
Ambassador and Moccasino – Men
North star – Youth centric Scholl
Bubblegummers – Kids
Bata Industrials received Directorate General Mines Safety Certification for its PU
Sole Safety Footwear range.
Positioning:
 Footwear and accessories for entire family
 Performance
 Affordable price
 Comfortable
 VALUE PROPOSITION
Brand Target customer Benefit Value proposition

Bata Price conscious middle Affordable & durable Comfort at affordable price
class

Ambassador Lifestyle oriented Comfortable finishing Shoes looking elegance &

consumers & better material class

Comfit Working executives Comfortable fitting Style & comfort at

Extra sturdy & more affordable price
stylish

Footin Style oriented youngsters Bold & bright fashion Comfort & fashion at
affordable price

Hushpuppies Working executives Light weight, soft & 360° comfort

comfortable
 VALUE PROPOSITION
Brand Target customer Benefit Value proposition

Moccassino Price conscious working Style & comfort Comfort at affordable price
executives

Northstar Price conscious youngsters Attractive and Style & fashion at

fashionable affordable price

Power Youngsters who use sports Style, durable General purpose sport utility
shoes for style rather than
sports

Dr Scholl Health conscious legendary cushioning, Expert in making feet feel

consumers and advanced good
technology

weinbrenner People engaging in Ruggedness & style Durable, stylish &

outdoor activities comfortable outdoor shoes

REPOSITIONING:
Manufacturing company

Marketing oriented company

 Upscale
precision

Hush puppies

Ambassador

Durable Comfort

scholl

Comfit
weinbrenner Moccasino
Power Northstar
Footin

Bata Affordable

REEBOK
Reebok is a global athletic footwear and apparel company, operating as a
subsidiary of German sports giant Adidas since 2005. Reebok produces and
distributes fitness, running and Cross Fit sportswear including clothing
and footwear. It is the official footwear and apparel sponsor for Ultimate Fighting
Championship, Cross Fit, Spartan Race, and Yuen Lui Studios.

Segmentation of Reebok :
Reebok has been a market leader for many years in the sports shoes. It has
been able to achieve it through its efficient and effective marketing strategies.
Reebok used innovative strategies as per the consumer needs. Reebok segmented
the market on the following parameters:
Geography:
Reebok chose to operate on Pan Country basis where it segmented locations as
per the consumers needs. The attribute requirement of the product in one region
will be different from the other regions. The company is re tailing from almost
750 exclusive stores. It also retails from two thousand multi -brand outlets.
Reebok has been adding a store a week, for the next year the company has lined
up even more ambitious plans to open a store every 72 hours. Reebok’s biggest
investment has been in the field of marketing infrastructure, creating an
international and uniform retail ambience in all their exclusive stores
Demographics:
Age and Gender – Reebok has segmented its product range as per the age of the
consumers. The requ irements attributes like comfort level, design is different for
different age groups. The company has released numerous notable st yles of
footwear including the 1982 introduction of the Reebok Freestyle that was
manufactured and marketed for women. The brand also introduced one of their
most signature shoes, The Reebok Pump . The footwear collection w as released as
a men's basketball shoe and the world's first full y adjustable fit controlled with
manual air allocation Their target age group is from 5 -55 years for both men and
women according to their needs as per the image given below:

Behavior: Behavioral segmentation divides a population based on their behavior,

the way the population respond to, use or know of a product. Consumer
behavior is a subject studied in depth over time in marketing management . This
is mainl y because there are several factors which a consumer takes into
consideration before taking a decision. They emphasize on what costumers think
and how they feel about their product. They provide good qualit y running shoes
for athletes and fitness freaks. Brand Lo yalt y is another impressive characteristic
of Reebok. In order to increase its loyalt y Reebok also invited visitors from
abroad to share fitness perspective and conduct the Reebok Resolution with the
Indian fitness fraternit y at large. It is not onl y instr umental in redefining the
attitude of fitness in India but also increasingl y made it a career choice for many
people. Their quality products, wide range of diversit y has created a loyal
costumer market for them.
Psychological: Reebok uses psychographic seg mentation to target individuals
with specific lifestyles and personalities. They offer athletic footwear and
apparels and within these there are a wide range of variety like the cross fit
sportswear based on the interests and life st yle of people. Latel y the company
has come up with its NBA -NFL range of T -shirts that are flying -off shelves in
retail stores due to the customer demand for the Americana look. Reebok is
becoming stronger as a brand day by day. Investment in building a strong brand
is a means of securing Reebok sales and business for the future based on its roots
and heritage in fitness/training, consumer insights and positioning within the
adidas Group, Reebok developed a clear roadmap for its key businesses going
forward: Own Women’s Fitness, Challenge in Men’s Training/Sport and Revive
Classics. Central to Reebok’s brand heritage is the courage to challenge
convention. Unlike many other brands, Reebok is committed to make fitness fun
again – challenging men and women to fulfill their potential in sport and in life
by providing them with the opportunit y, the products and the inspiration to have
fun staying in shape. Their target audience under the VAL’s framework would be
Thinkers, Achievers, Experiencers and Believers.
Value Proposition of Reebok
Ever since it established its presence in India in 1995, Reebok has dominated the
Indian sports - wear market. While its major competitors Adidas (now its sister
concern) and Nike have not been as successful in the Indian market. Reeboks main
advantage has been that it understood the Indian consumer very well and has made
an effort to grow alongside him.

Four P Components of Marketing Mix

Product: Reebok has strategicall y launched various new products in Men’s and
Women’s segment. This study ha s described all those products range launched by
the company in recent past. Broadl y speaking, the product range of Reebok
consists of footwear, apparels and sports related accessories.

Price: Reebok follows the common pricing strategy. Their main aim is to survive
and grow in the market. But as such Reebok follows maximum market skimming
strategy. Whenever Reebok unveils a new technology in market they set a high
price for it. Reebok starts for such products with high prices and then slowl y drop
prices over time. As Reebok can sense that whenever they launch a product they
have sufficient number of buyers for that product and Reebok keeps the price high
so that they are able to control the demand, earn more profit and communicate to
buyers with high price that the product is superior. Reebok usuall y follow
skimming strategy but when it entered into the apparels and other accessory
market in India it followed penetrating pricing, i.e. Reebok set low prices for
apparels to attract the customers at the start t o an introductory price, and as the
products became more popular the prices were raised to a normal level. Companies
usuall y set their prices to stay ahead in the market.

Place: Reebok reaches out to its target customers through its 1000+ exclusive
stores, 200+ shops in the shop outlets & 2500+ dealer outlets. The footwear
franchise provides a range of footwear such as for Adventure, Basketball, and
Casual and Cross Training. The Reebok franchise also has shoes for Running,
Soccer, Tennis, Walking and basic sandals for the men. The clothing and footwear
franchise has its apparel section for the women and men. Reebok India’s footwear
and athletic apparel market share was 54 percent as 2009 came to a close, up from
51 percent the year before. That’s a far cry from Reebok’s United States numbers.
The company was the first to introduce women’s athletic shoes in 1982 and once
enjoyed a dominant share of that market. The company had just a 2 percent share
of the women’s footwear market in2009, down from an almost 9 percent share just
two years ago.

Promotion:

Advertising Agencies
To promote its brand, Reebok has been taking services from advertising agencies
for quite some time now. During 2004 -2007, McGarry Bowen was Reebok’s brand
agency globall y. During this period, Reebok had done advertising and marketing
for various products. Pump sneakers advertisements, "Two People in Everyone"
ad campaign, Runners head game - I am What I am ad campaign were all under
this advertising agency. In March 2009, Reebok changed its advertising agency
to DDB Worldwide. This agency handled Reebok’s brand advertising and
marketing communications as Reebok is trying to establish its brand in the
women’s fitness market. The ad cam paign "Your Move" was done under this
agency. However, Reebok handed its regional advertising business to WPP
subsidiary Soho Square, which was supposed to manage Reeboks key markets in
the Asia Pacific including Hong Kong, Japan, Korea, Australia and Indi a and
China.

Newspaper
Reebok also features its ad in supplement papers of national dailies like HT Cit y
of Hindustan Times, Delhi Times of Times of India, and Mumbai Times of Times
of India.

Television Media
Reebok uses many celebrities in India to shoot in a television commercial for
promoting its different categories of products. For sports related products, it has
primaril y used Indian Cricketers such as M.S. Dhoni and Rahul Dravid. Recentl y,
It has signed a deal with the great Sachin Tendulkar as well . Reebok uses this
marketing tool to gain recognition for its products and promote specific stores or
products. Reebok had used various sportsmen and non -sportsmen as their brand
ambassadors. In terms of general fitness; Reebok usuall y endorses famous mode ls
of boll ywood stars.

Internet
Online purchase and marketing has been a great revolution in last 2 -3 years in
India. Thus, Reebok is also selling its same products as they do in stores through
web as well.Reebok.com has not done much to promote its web si te, but they do
put their web site address at the bottom of all their television commercials and
print advertisements.
Reebok Taglines Development
Tag lines always give a brand its identit y as well as a momentum, if it is used the
right way. It is very imp ortant to develop a catchy corporate tagline in addition
to a great corporate logo that will effectivel y communicate in one sentence what
services or products your company sells. Over the years Reebok has constantl y
changed its taglines and highlighted on different aspects of fitness. Reebok’s
taglines are focused on women fitness - where it has deep roots; men’s fitness and
training, to be credible an athletic footwear brand; and classics. In 2008, Reebok
has signed an endorsement with Bipasha Basu to make fitness fun with Reebok.
Reebok pinpointed the consumer insight that women perceive exercise as a boring,
and would work out more often if the gym was fun. Reebok tried to make fitness
fun again through an exciting partnership with top instructors from ar ound the
world. Reeboks challenger approach was to provide consumers with the choice to
take the boredom out of working out. Running online, out -of-home, in-store, and
in print, the campaign features fun, engaging taglines such as, "Less work, more
play. Fitness is what you make of it. Your Move In 2006, Reebok had a tagline
"Run eas y". The Run Easy campaign took 180 degree turn from traditional sport
advertising. It addresses the majorit y of runners, emphasizing on running as a
social activit y and more imp ortantl y, fun..

PUMA
Puma is a globally renowned footwear and apparel brand. It was launched in 2005 and sells its
merchandise through online stores and also retail outlets in India. Casual wear seems to be pretty
well sought as well since they have made a lot of name for themselves. However, as the sports
niche entrant, the company is ought to be your premier sports footwear choice.

It is among the top five sports shoe and apparel manufacturers. Puma shoes are comfortable,
durable. Puma’s IGNITE range of running shoes are most popular and are high on style and
functionality. Their best selling sports shoes are evoPower football shoes and evoSpeed cricket
shoes.

MISSION:

Forever Faster is more than being quick. It is their mantra. It is 70 years of fast products for fast
athletes. They aim high, and when they score their goals, they aim even higher. All to achieve one
thing: to be the Fastest Sports Brand in the World.
Puma uses a mix of demographic, geographic and psychographic segmentation strategies to
understand the changing needs of the customers in the competitive market. PUMA focusses on the
demands of a group of customers more than another for more profits especially in the fitness- shoe
market.

SEGMENTATION :

Age can affect the tendency of buying of customer

1. Kids (6to12) : They may like colourful small sized shoes.

2. Teens (13-19) : They may like something which is cool and interesting.

3. Adult (20-36) : They may like the regular shoes with white or black colours.

4. Middle aged (37 to 55) : Their desires are similar to that of adults.

5. Old (55+) : They may like comfortable, safe and stable shoes.

Gender: Different genders have different demands.

1. Men : They like strong style, strong color like black and white

2. Women: They may like fresh styles, and soft colors like pink, light-green

Thus, there are many segments in fitness shoes market which can be considered as Demographic
Segmentation’ that PUMA must satisfy the demand of consumer about region, population, climate,
population growth rate and density. So the lifestyle fitness shoes can be the answer , because this
kind of products is wide cover all of that demand.

VALUE PROPOSITION:

Sport is their world. This makes them passionate about designing, developing, selling and
marketing footwear, apparel and accessories. In 70 years, PUMA has established a history as
creator of fast product designs for the fastest athletes on the planet: Enhancing areas such as
football, running and training, golf and motorsports with performance and sport-inspired lifestyle
products. To push sport forward in more than 120 countries, more than 13,000 people work for a
common goal. The Fastest Sports Brand in the World needs a suitable game plan. Over the past
years, they’ve executed a turnaround strategy with five defined priorities.

1. BRAND HEAT

The strength of PUMA’s brand? They draw from their unique heritage in sports and high
credibility in the latest lifestyle trends. To stay on this track, they strengthen their position as a
sports brand through partnerships with some of the most elite athletes, such as sprint legend Usain
Bolt and star striker Antoine Griezmann. To connect with young trend-setting audiences, they have
also developed a unique way of working with cultural and fashion icons like Cara Delevingne and
Selena Gomez.
2. PRODUCT

PUMA can look back on an extraordinary history full of innovations, designs and products. Thier
influence can be felt in the sports and sports lifestyle industries till this day. And they are
determined to keep it that way. If we ask them, innovation is at the heart of product design.
Naturally, they constantly sharpen the design principles: With products like the CREEPER and the
FIERCE, we have introduced some of the industry’s most eye-catching, but also commercial
styles.

3. WOMEN’S

Women are a priority for PUMA. They acknowledge women not only as trendsetters in taking
inspiration from athletic wear for their everyday style, but they’re increasingly participating in
athletic activities worldwide. Building on PUMA’s fashion credibility and sports authenticity, as
well as a profound understanding of the modern female athletic consumer, they have positioned
their offer for women “where the gym meets the runway”

4. DISTRIBUTION

PUMA has continuously improved the quality of its distribution. At the same time, they have
expanded their presence in key sports performance and sport style accounts around the world.
They remain dedicated to strengthening relationships with key retailers by being a reliable partner
for them, and by maximizing PUMA’s contribution to their business. It is a clear objective for
PUMA that retail partners make money with the products they sell.

5. ORGANIZATION

PUMA continues to make progress in key areas, which includes further enhancements of PUMA’s
International Trading Organization. This manages global order and invoice flows centrally, the
roll-out of a new product development system, further standardization of ERP systems, and
improvements to the overall IT infrastructure.

Puma's success in India, say marketing experts, lies in smart rather than aggressive marketing,
prudent expansion and sticking to the basics of shunning discounts. "Most of the sportswear brands
have been using price-discounting as a tactic for increasing sales. This affects the margins and hits
profitability.
What also helped Puma in becoming profitable was a sensible expansion strategy. That it is still
not the most widely distributed brand in the country may perhaps be a reason it doesn't find itself
in a sea of red; it has 430 stores across India whereas for the Adidas-Reebok combo the number is
over 750; Nike says it sells through 3,000 touch points, including exclusive outlets and multi-brand
outlets. "We didn't over-expand and over-distribute in markets. This helped to increase profitability
as they didn't open the stores just for the sake of doing so”, says Ganguly.
Nike
STP (Segmentation, Targeting and Positioning)

Market Segmentation

It has following segmentation to create consumers groups to target:

Demographics segmentation: Nike has segmented an Age and gender group that is it has such
products that serve male and female that has age range of 15-55.
Psychographics and behavioral segmentation: Nike has this segmentation to answer that why
consumers need its products and what the consumers have interest and purchasing habits. So
regarding this Nike segments its market which includes:

• Sports or athletic oriented

• Active lifestyle(interest in fitness and exercise for recreation)

Geographic segmentation: On the basis of this, Nike has segmentation to serve its target
customers all over the world. It has major markets in USA, Asia-pacific Europe, Africa but it has
continuous objective to cater markets in other countries as well like North-America, China,
Japan, and Middle-East etc.

Targeting

As for market segmentation, Nike has niche market to serve that is Nike focuses and targets
athlete or sportsperson segment and provides required products to them as footwear and apparel
products, which have quite specific and unique feature as compared to other footwear products.
Following are the some target strategies of Nike:

Its target strategies include aggressive marketing to make aware its target consumers about its
product and even Nike make its target consumers enable to get their desired products through
customization process as own signature shoe is offered to athlete that is it enabled Michael
Jordan to have his name Jordan shoes.

Apart from this, its targeting strategies include sponsorship of its products through sports team or
celebrities. It has objective of styling its product through psychological tactics on target market
by linking triumph with apparel that is products are viewed as victory when sponsorship is done
by athlete celebrities

Another targeting strategy is Nike cross training established in 1989 which caters all the athlete
participants all over the world and trains different sport activities which has also become way to
make its target market satisfied.

Market Positioning

Nike has positioned itself in the mind of its target customers as a leader in sports goods. It has
made such products that satisfy its niche market with all products related to sports. Its slogan
‘Just do it’ has made an appeal to target customers to buy the product with sense of inspiration
and confidence and which has made it major competitor in athlete industry.

Its positioning statement is

‘For every serious athlete Nike provides perfect shoe or sports products that gives confidence for
every sport activity’

It has following positioning strategies:

• Enhancing athletic lifestyle or fantasy in consumers mind
• Appealing style and attitude
• Positions itself as premium brand with well-designed products
• Appealing quality level and valuable products

Strategy Summary

Its main focus is to gain leading role in athletic market and increase its market share
To produce quality and innovative products for target consumers
It has following strategies in terms of following factors:
Pricing strategy: Nike has value based/price leadership strategy that offers the customer with the
price that customer value so it has high prices for its products as it has niche market to serve with
valuable products.
Market expansion strategy: Nike has strategy to expand its distribution channels all over the
world through constant improvement in products lines.
Outsourcing strategies: Nike has relied on outsourcing of its product manufacturing; it has
contracts with different countries like China, Japan, Indonesia, Brazil, Vietnam etc.
Competitive advantage
Technology: Nike has incorporated technology in their product as it has collaboration with
technology based companies as Apple, through which it has made most competitive products that
enables the consumers to connect their iPod devices to sensors inside the Nike shoes that help
them to record time, distance and pace.

Manufacturing cost: Nike has SCM capabilities as it has got competitive advantage in terms of
having global outsourcing strategy that enables it to get low cost in their production and it has
about 715 contracts with the countries of the world which help it in supply chain process.

Economies of scale: It has got the Economies of scale through their efficiency in production i.e.
they have continuous improvement in their production by incurring low cost with increased level
of production and revenue.

Patents: Nike’s strength is also having valuable and non-replicable products, which are it has
strong patents and copyrights on its products so that they would not copied easily and remain
unique in the market.

Research and development strength: Nike is considered as fully innovative company that
continually strives to bring new thing in their products for their target market and this is done
through their Research and development department which has strength and much resources and
ideas to produce new things in the market. So Nike strive to make innovations in their products
by bring technologies in them, it has new product development strategy which suggest that it
updates or redesigns its products every six month with new modifications and also it incorporates
the comfort, value and performance in its product so that its target market remain satisfied long
term.

Marketing Mix strategy

Nike has the leading role in marketing and has strongest marketing mix. In particular it depends
on Pull strategy; it has established it’s seizing against the big competitors like Reebok and
Adidas

Product

Nike offers a wide range of products including shoes, apparel and equipment. Currently these are
top selling product categories, all these products clothing and equipment specialized for sports
products

The first product of Nike is running shoes. Apart from this, it offers currently in athletics,
baseball, ice hockey, tennis, soccer, lacrosse, basketball products and has wide range of sports
products such as cricket shoes, shirts, and shorts.

Nike NYX and Nike SB shoes offered for the first time in 1987. In 2008, Nike Air Jordan XX3,
basketball shoe was introduced with the high performance, designed for the environment (4P of
Nike).

Nike also offers products for tennis, golf, skateboarding, association football, baseball, football,
cycling, volleyball, wrestling, cheerleading, aquatic activities, and sells shoes for racing and
other sports and outdoor activities as recreational uses.

Recent products:

Nike has recently introduced cricket shoes are designed to be lighter 30% than its rivals i.e. Air
Zoom Yorker and Nike Air Max designed for the latest addition to its line skate Nike 6.0.
Nike recently shoe tracks the performance of a corridor on the radio device that connects to the
iPod Nano to produce the Nike + Apple Inc. with the team, while the product generates useful
statistics and enables the users to get value from product (4P of Nike).

Beside this, NIKEiD is a sub brand which allows the customers to design their customized Nike
footwear through offering a selection of shoes, what customers want; different colors and fabrics;
they can choose whatever area of the shoes they want. This customization allows customers to
create different designs in large quantities. Customers do not have to design shoes themselves
but have designs that customers can buy a selection of pre made designs. NIKEiD’s
customization process and offers are available in Nike’s website (NikeID).
Pricing

The type of products to be marketed will affect the price of a product. Nike’s pricing strategy is
considered to be competitive than other retailer shoe. The pricing is based on the basis of target
customers as a premium segment. Nike brand commands a high premium. Pricing strategy
makes use of vertical integration in which they participants at differing channel levels or take
role in operations level more than one channels to control cost and impact product pricing

Nike has become so well known that most people will pay more dollar for quality products for
this product. That is why Nike uses Cost Based/Value Based Pricing other than its competitors
which offer low prices. The target customers of Nike are those who are niche and have almost
have the financial capability of the product, such as the use of expensive clothes is a status
symbol. This makes the customer want to continue to buy the product of Nike. Without a high
equity brand, like Nike, however, this would not be possible rise in prices

Pricing strategy currently used by Nike is like, it may continue to use it. Nike's current customers
currently specify what they would be willing to pay the cost of the product to ensure the quality
and service they receive from Nike. On the basis of the services offered by Nike, to find that they
can compare the quality at a reasonable price from competitor service and prices are fairly
charged

Place/Distribution

Nike shoes are conceded by other multi brand stores and exclusive Nike stores worldwide. Nike
has about 20,000 retail accounts in the US and sells its products in about 200 countries
worldwide. In the international market, independent distributors, licenses and subsidies sell Nike
products. The company has manufacturing facilities worldwide and in Asia, customer service
and other operational units.
Nike long term plans to open more stores and franchise to reach target customers and to expand
the maximum buyers.

In Nike Town store, shops sell sheep showmanship interested enough to do whatever. Nike town
stores can take the entire city blocks and customers can feel like future oriented. These include
basic shoe stores made during each boasting chandeliers Nike product imaginable. Nike town
product offers a complete experience. This store has all the products, but will not stay there again
create a memorable experience for the customer to bring back again (Nike 4PS).
In the international market, Nike has independent distributors, licenses and subsidiaries which
sell its products. To reduce the cost of Nike’s products, it has outsourcing strategy with China,
from developing countries in Asia, such as Vietnam. And to do more business online because
Nike tradition is as spending on online advertising as compared to advertising media, e-
commerce and online marketing contributions are planned to expanded appropriate channels

Nike has some specific distribution outlets and use them for distribution of its products,
following are the major ones:
• Nike town shop: In big cities of countries, Nike’s outlets are there to serve customers
with products.
• Flagship stores: Nike has contracted with retail stores that has label of flagship of Nike
which serve with high volume of Nike’s products to consumers
• Nikeid: It is a Nike’s online store that is website which serves the customers of all over
the world with customization services.
• Big retail discount stores: The big stores of country also serve with some high demand
Nike products for the target customers.
All these have availability of Nike’s products; consumers who want Nike’s products can get
required products from these distribution methods of Nike.

Promotion

The marketing communications mix is effective because Nike attracts new customers and creates
balance between keeping existing customers (nike marketing communications-mix).
This is one of the strengths of Nike. Nike has introduced its offers to almost any environment
known to man and is extremely sensitive. Print advertisement in general, simple but send a
strong message. There is virtually no advertising that appears on their price and Nike are almost
always uses a popular athlete to promote its product. The Advertisement exceeds the
expectations of everyone with these shoes and they are able to demonstrate on the rise for
consumers (nike 4p).
Promotion of Nike is best; Nike uses Commercials, celebrities or billboards as ways to make its
target customer aware about its offers. But Nike needs other ways for promotion as to encourage
more new products. Then it may use the maxi environment and can create brand awareness.
Marketing implication is that Nike is a marketing strategy for online ecosystem. This means that
Nike is preparing to cut for television and print advertising, and increasing to the social media
(Nike Marketing Plan).

Nike also sponsors events such as Hoop It Up and The Golden West Invitational. Nike’s brand
images, the Nike name and the trademark swoosh; make it one of the most recognizable brands
in the world. Nike’s brand power is one reason for its high revenues and makes other companies
to get sponsorship from it.
Nike runs advertising in newspapers and has benefit of creating strategic alliances.

Adidas
All successful organizations have outstanding marketing strategies which they segment
strategically. The market you sell to is very important to you organization. Companies such as
Adidas market to athletes of all ages over the world. Adidas markets to professionals and amateur
athletes. The market segmentation plays a key role in the marketing strategy. Each market is unique
so the organization has to be careful upon choosing the right one(s). The purpose of market
segmentation is to enable the marketer to adjust marketing mixes (product, price, promotion, place)
to meet the needs of one or more specific segments. Basically marketers use the
market segmentation process to divide big markets into smaller segments according to
characteristics of individuals, different groups and locations.

Adidas the largest sportswear manufacturer in Europe and the second biggest sportswear
manufacturer in the world markets by looking at buying attitudes and buying practices of different
people. The sellers design a separate market program for each buyer. Adidas mainly focuses on
demographic and psychographic segmentation's. So Adidas develops their brand in 3 different
styles of segmentation.

Demographic segmentation refers to dividing the market into groups based on demographic
variables, such as sex and age. This method has long been used in clothing market. Adidas brands
products into range of male, female and kids, according to age and life cycle segmentation and
gender segmentation. Adidas has a branded range of male and female clothing, shoes or body-
care and eye wear. Performance, originals and style are all three brands of Adidas.

Psychographic segmentation is used to divide the market into groups based on social class, life
style or personality characteristics. Adidas focuses on social class because people within a given
social class tend to have similar buying traits. Companies also use income, gender, ethnic, and
family life cycle segmentation's to distinguish their market but Adidas keeps it a little less
complicated and more wide ranged so the brand is marketing to many different people all over the
world.

Products in the marketing mix of Adidas

The Adidas group has 4 main subsidiary’s. The first is its own brand name – Adidas, which is
present in clothes as well as footwear. The second is Reebok which has overtaken Adidas and is
one of the leading subsidiary’s in the Adidas group. The 3rd is Rockpot which specializes in
outdoor footwear, apparel’s and accessories and 4th is Taylor made which is focused on golfing
clothes, equipment etc. Out of all the above subsidiary’s, Reebok is the strongest followed by
Adidas.

Adidas has various products. The major product of Adidas is off course their footwear. Coming in
various design and style, Adidas footwear is robust and athletic. The secondary product of Adidas
is apparel’s and accessories. Apparel’s like T-Shirts, jackets, sweatshirts, shorts etc are in great
demand. Where Reebok is stronger in footwear, Adidas is stronger in apparel’s.

The aim of Adidas is to give the best footwear to their customers which has the combination of
technology and design. These products are not need based. In fact, the shoes are bought by
customers to satisfy their wants and desires. Similarly, the apparel’s are targeted towards comfort
during heavy activity. However, although the main target is sports, the apparel’s are frequently
used as a style statement by youngsters.
Pricing in the marketing mix of Adidas

Adidas, because of its style, design and promotions uses skimming prices as well as competitive
pricing. For run of the mill products, Adidas uses competitive pricing keeping in mind competitors
like Nike, Reebok and Puma. But for products which are newly introduced in the market and are
uniquely designed, Adidas uses skimming price.

Apparel’s of Adidas constantly use skimming price and are higher priced due to brand equity of
Adidas in the apparel’s market. The target customer for Adidas is the upper middle class as well
as high end customers. Adidas never uses penetrative pricing because that will affect the brand
equity of Adidas. In fact, the higher price point helps in the price quality approach and
psychologically, customers think that a higher price will mean better quality as well. Thus, Adidas
rarely drops its prices.

Place in the marketing mix of Adidas

The major way in which Adidas is sold is through retail outlets. Adidas has its own exclusive stores
in which the material is provided directly from the company. On the other hand, many multi brand
showrooms will also have Adidas apparel’s and footwear on display. These multi brand
showrooms get the products from a distributor. The third and last mode of distribution is online.
The products are sold through online medium via fashion stores lie myntra.com as well as the
online website of Adidas. Thus the distribution channel of Adidas is as follows

1) Manufacturing > Adidas outlets > End customer

2) Manufacturing > Distributor > Multi brand showrooms
3) Manufacturing > Online fashion websites / Adidas website > End customer

Due to the excellent brand equity of Adidas, the operating margins are fairly high thereby keeping
the distribution channel motivated. A happy distribution channel means better promotion for the
company.

Promotions in the marketing mix of Adidas

Adidas markets through various marketing vehicles but the majority of marketing is concentrated
on television and product placements. The creative team of Adidas is known to pump adrenaline
in their customers through ads which are well made, very creative and filled with energy. These
ads attract the customers towards the brand by sending the right marketing message to the
customer.

The tagline of Adidas “Impossible is nothing” is in itself a very powerful statement for the brand.

After television, product placement is the second line of promotion for Adidas. The popularity of
the brand is because it ties up with the top players across the world such as Lionel messi,
Ronaldinho, Sachin tendulkar and various others.
At the same time, Adidas also sponsors teams and some of the top teams include Real Madrid,
France, Great Britain (in football), England and South Africa (in cricket) and several others. Here
is a list of all the sponsorships done by Adidas.

Below the line marketing of Adidas includes some very creative outdoor campaigns as well as
events marketing. Sales promotions and trade promotions are also regularly offered by Adidas to
their channel partners to promote the sales of the brand. This concludes the marketing mix of
Adidas.