Consumer preferences

Towards Branded Sports

ShoesRajput Miraj

INDIAN FOOTWARE INDUSTRY

The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011.

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

opportunities in the exclusive ladies' and kids' footwear segment

MAJOR PLAYERS IN FOOTWEAR

Data analysis and interpretationQ.1. WHICH BRAND DO YOU PREFER ?

34

28

9

26

3

0

5

10

15

20

25

30

35

40

Reebok Adidas Action Nike Others

Reebok Adidas Action Nike Others

34

28

9

26

3

0

5

10

15

20

25

30

35

40

Reebok Adidas Action Nike Others

Reebok Adidas Action Nike Others

COMMENT: Most of the people prefer to wear shoes of Reebok brand

Data analysisQ.2. ARE YOU SATISFIED WITH THE QUALITY OF PREFERD BRAND ?

98.6, 99%

1.4, 1%

Yes

No

98.6, 99%

1.4, 1%

Yes

No

COMMENT: Most of the people in surveyed region were satisfied with their brand.

Data analysisQ.3. ARE YOU SATISFIED WITH THE PRICE RANGE ?

PERCENTAGE(%)

64%19%

17%

Yes

No

NO COMMENT

PERCENTAGE(%)

64%19%

17%

Yes

No

NO COMMENT

COMMENT: Most of the people were happy with given price range.

Data analysisQ.4. IF PRICES OF YOUR PREFERED BRAND INCREASES WILL YOU PURCHASE AGAIN ?

Same brandCheaper

brand Any otherbrand

FREQUENCY

PERCENTAGE(%)

58

1626

87

23

40

010203040

5060

70

80

90

FREQUENCY

PERCENTAGE(%)

Same brandCheaper

brand Any otherbrand

FREQUENCY

PERCENTAGE(%)

58

1626

87

23

40

010203040

5060

70

80

90

FREQUENCY

PERCENTAGE(%)

COMMENT: Increment in price affects the trend and market of the “branded sports shoe”.

Data analysisQ.5.WHAT FACTORS INFLUENCE YOU TO GO FOR A PARTICULAR BRAND ?

74

513

80

0

10

20

30

40

50

60

70

80

Quality Price Durablity Variety Any other

Quality Price Durablity Variety Any other

74

513

80

0

10

20

30

40

50

60

70

80

Quality Price Durablity Variety Any other

Quality Price Durablity Variety Any other

COMMENT: people in the surveyed area mostly preferred the quality of the brand instead of price and durability.

Data analysisQ. 6 DO YOU NORMALLY SWITCH OVER THE BRAND ?

44%

56%

Yes

No

44%

56%

Yes

No

COMMENT: Most of the people were not ready to switch over from their brand.

Data analysisQ. 7. IS THERE ANY EFFECT OF ADVERTISEMENT ON SELECTION OF BRANDS ?

PERCENTAGE(%)

69%

31%

Yes

No

PERCENTAGE(%)

69%

31%

Yes

No

COMMENT: Advertisement plays a crucial role in the brand selection

Data analysisQ.8. WHAT KIND OF PROMOTIONAL TOOL YOU PREFER ?

11 14 1422

60

91

1523

01020

304050607080

90100

Lucky coopen Free Gift Discount Buy one getone free

PERCENTAGE (%) FREQUENCY

11 14 1422

60

91

1523

01020

304050607080

90100

Lucky coopen Free Gift Discount Buy one getone free

PERCENTAGE (%) FREQUENCY

COMMENT: Respondents were more inclined towards the discounts Package in companies promotional tools.

Data analysisQ. 9. WILL YOU BUY PREFERED BRAND AT LOW COST OF NEGLIGIBLE QUALITY ?

23%

77%

Yes No

23%

77%

Yes No

COMMENT: Most of the people do not want to leave their preferred Brand at the cost of “low prices”

Data analysisQ. 10. IS THERE ANY IMPACT OF CELEBRITIES ON YOUR PURCHASING ?

58%

42%

Yes No

58%

42%

Yes No

COMMENT: Celebrities have a special impact on the mind of the consumers that affects the purchasing sense of consumers.

Data analysisQ. 11. DO YOU THINK WEIGHT IS A FACTOR FOR CHOOSING A BRAND ?

83%

17%

Yes No

83%

17%

Yes No

COMMENTS: weight proved its importance in purchasing of the shoe. Most of the users preferred to wear lighter shoe.

Findings THE THREE MAJOR GLOBAL PLAYERS I.E. REEBOK, NIKE, AND ADIDAS

DOMINATE THE SPORTS SHOES INDUSTRY IN INDIA.

INDIA IS ONE OF FEW BATTLEGROUNDS IN THE WORLD WHERE THERE IS NECK-TO-NECK COMPETITION BETWEEN THE THREE.

CONSUMER REACTIONS SUGGESTS THAT NIKE IS THE MARKET LEADER AMONG ALL

AFTER ITS SPONSERSHIP TO MAJOR SPORTS EVENTS AND TEAMS LIKE SOCCER IN EUROPE AND CRICKET IN INDIA GIVE IT AN EXTRA EDGE.

CONSUMERS ARE NOT SHOWING THAT KIND OF CRAZE IN REEBOK FOR PAST FEW YEARS.

THE NEW STUFF OF THE ADIDAS IS ATTRACTING THE CONSUMERS

Videos

Bata’s Offerings

COMPARISON OF COMPANIES

COMPANIES AVERAGE GROWTH RATE (2005 – 2008)

NIKE 10.7 %

ADIDAS 22.46 %

BATA 7.8 %

LIBERTY 11.16 %

COMPARISON OF THE COMPANIES (PORTER’S MODEL)

BASIS OF

COMPARISONNIKE ADIDAS RELAXO ACTION BATA LIBERTY

BARRIERS TO ENTRY

ABSENT ABSENT ABSENT ABSENT ABSENT ABSENT

BARGANING POWER OF BUYERS

LOW LOW HIGH HIGH HIGH HIGH

BARGANING POWER OF SUPPLIER

LOW LOW HIGH HIGH HIGH HIGH

THREATS OF SUBSTITUTES

HIGH HIGH HIGH HIGH HIGH HIGH

RIVALRY AMONG THE EXISTING COMPITITORS

HIGH HIGH HIGH HIGH HIGH HIGH

COMPANIES TARGETING THE CONSUMERS BASED ON INCOME

BATA, ACTION, LIBERTY,NIKE, ADIDAS, RELAXO

LOWER MIDDLE CLASS

UPPER MIDDLE CLASS

RICH CLASS

BATA, ACTION, RELAXOLOWER INCOME

GROUP

ACTION, LIBERTY,NIKE, ADIDAS, REEBOK

PUMA, NIKEADIDAS, REEBOK