footwear industry ye ye

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A RESEARCH REPORT
ON
“CUSTOMER SATISFACTION TOWARDS BRANDED SHOW INDUSTRY WITH
SPECIAL REFRENCE TO (adidas, puma, Nike and liberty)”
IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE
OF MASTER OF BUSINESS ADMINISTRATION (MBA).KURUKSHETRA UNIVERSITY,
KURUKSHETRA
Paper Code: CP-402
Project Supervisor: - Submitted By:-
Miss Pallavi dua Name- Zubin Sehgal
(Asst. prof.) Class Roll No - 1641
AIMT University Roll No -
Session- 2011-2013
Department Of Management
SHRI ATMANAND JAIN INSTITUTE OF MANAGEMENT AND TECHNOLOGY
(AMBALA CITY)

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PREFACE
Research project is the bridge for the student that takes him from his theoretical knowledge
world to practical industrial world. The advantage of this sort of integration (research program
me), which promotes guided to corporate culture, functional, social and norms along with formal
teaching are numerous. The main aim is:
To bridge the gap between theory and practical
To help the students to develop the better understandings of concepts and question
already raised or to be raised subsequently during their research period.
The present research report gives a detailed view of CUSTOMER SATISFACTION
REGARDING HIGH END BRANDED SHOE INDUSTRY WITH SPECIAL REFRENCE TO
(ADIDAS, PUMA, NIKE AND LIBERTY)

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ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in the success of any
venture. In the present world of cut throat competition project is likely a bridge between
theoretical and practical working, willingly I have prepared this particular project.
Firstly, I would like to extend my sincere thanks to Miss Pallavi dua (Asst. prof.) and
Prof.(Dr.) S C Aggarwal (director) for his able guidance, regular counseling, keen interest and
constant encouragement, without this support the project would not have a successful end. I am
highly thankful to her for his helpful attitude, regular coaching and inspiration.
I sincerely thank to all faculty members and the staff associated for their support given to me
time to time. Also, I would like to thank to all my friends and family members for their support
given to me time to time. I don’t have words to express my thanks, but still my heart is full of
gratitude for the favors received by me from every person.
(Zubin Sehgal)

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DECLARATION
I, Zubin sehgal the undersigned, hereby declare that this report entitled” is a genuine and
bonafied work prepared by me under the guidance of Miss Pallavi dua (Asst. Prof.), and is my
original work. The matter in this report is not copied from any source.
This work is humbly submitted to AIMT for the award of degree of Master of Business
Administration.
Place:
Date: (Zubin sehgal)

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TABLE OF CONTENTS
Topic Page No
Chapter No – 1
INTRODUCTION 6-30
Footwear Industry
ChapterNo - 2
RESEARCH METHODOLOGY 31
Objective of the Study 32
Types of study 33
Limitation of the Study 34
Chapter No - 3
DATA ANALYSIS AND INTERPRETATION 35-54
Chapter No - 4
FINDINGS, CONCLUSION & SUGGESION 55-57
Findings 55
Suggestion 56
Conclusion 57
BIBLIOGRAPHY 58-59
APPENDIX 60-65

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Indian Shoe Market
The Indian footwear market is estimated to be worth USD 3.94 billion and is growing at a
compounded annual rate of 15% to be worth USD 6.89 billion by 2015.
The global footwear market size is estimated to be USD 181.9 billion growing at a CAGR of
nearly 5%.India is the world’s second largest footwear producing country, second to China and
the third largest market.
Even though the per capita shoe consumption in India has gone up from 1.4 shoes a year in 2004
to 2.5shoes per year in 2012, it is still much below the average per capita income shoe
consumption of five, in developed countries
India is a major supplier of medium- and low priced
Footwear.
Several footwear majors source parts of their production and purchase from India. Further,
reputed global brands such as Florsheim, Nunn Bush, Stacy Adams, Gabor,
Clarks, Reebok, Ecco, Deichmann, Elefanten , StMichaels, Hasley, Salamander and Colehaan
are
manufactured under licensed in India.
India has a booming garment and shoe market. In various cities there, new shopping malls have
sprung up one after another and sellers compete to exhibit latest products while consumers
exhibit eager demand for brand products.
Many brands expand their businesses through franchised operation, particularly garment and
shoe brands. By 2012, franchised operation is expected to hit 6% in growth rate, amounting to
USD 17 billion in total value. This means that this market will create substantial opportunities
related to franchised operation.
India is witnessing a rapid growth in its retail, attracting many international brands, most of
which come from Europe and USA. After Tommy Hilfiger opened up store in India recently, it is
reported that Esprit is to enter this market in summer 2005.

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According to CY Pal, president of India Franchise Association, half of the retail activities in
USA is conducted in the form of franchised operation while only 2% of the retail activities in
India is associated with franchised operation.
However, franchised operation has been rapidly growing in India at the annual growth rate of
30-40%, especially 4 or 5 years ago.
According to Pal, research indicates that the success rate for franchised operation is as high as
90% while that for non-franchised operation is as low as 10%. Major players are opening more
stores to capture the growing consumer market.
Further, an increasing number of players are delving into Tier II and Tier III cities as well as the
growing ruralmarket to tap growing opportunity. According to media reports, the
non-metro market accounts for nearly 55% of the overall footwear
industry.
According to For BeStylish.com, an online footwear retailer,37% of the traffic comes from urban
areas, while an equal numbercomes from towns with a population of less than half a million.*
Recently, Reebok announced that it would make a one-dollar shoe for India. This will enable
them to capture the largely untapped rural market.
Online shoe shopping is a significant segment that is fast emerging in terms of footwear sales.
According to reports, it accounts for about8% of the overall industry and is expected to reach
about 20% by 2015.
Retailers need to localise their product offerings to cater to varying consumer demands. It
therefore becomes imperative to understand target consumer demands.
Styles and colours vary from region to region.
Bright colours may be demand in northern India
while white and muted colours sell well in south India. In fact, to overcome this, some large
Retailers like Nike and Reebok are offering customising options such as selecting the design,
Colours, etc. on their websites.
According to an ASSOCHAM survey, women are in general more concerned about the style and
Looks and do not mind buying from the local market. On the other hand, men are concerned

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About the quality and price of the product and prefer branded shoes.
Growing competition will see innovation become key to differentiating between products in the
Market and gaining consumers. Players are innovating around materials, design, etc in order to
Impart varying attributes to the footwear-like insoles that can modulate the heat released, soles
to which varying weight may be attached to vary the stamina of the workout, etc.
Nike has launched a new line, Nike Flyknit. The shoe has a sock attached within. Further, the
warp and weft of the shoe’s texturised knit opens up the possibility for interesting colour
combinations.
Total revenue of footwear industry in india

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The Indian footwear industry has developed substantial links in the global production network.
But, this industry is still dominated by firms that cater largely to the domestic market through the
artisanal production system. Specific footwear centres and sections of firms in traditional
footwear clusters have established strong relations with the export market. Still, there are only
few firms (e.g., Lotus Footwear Ltd., Apache Footwear Ltd. Etc.) that are directly involved in the
global production chain of multinational corporation (MNC) in the sports footwear
category..Apart from TATA, no large domestic corporate firm is involved in the footwear
production neither for export or in the domestic market.
The marketing system of export and domestic markets can be aptly compared in the
theoretical framework of transaction cost economics (Tesfom et. al, 2003). The key elements of
this framework are asset specificity, uncertainty and frequency.
In this low technology industry entry barrier is low and asset specificity is largely related to
market information.
In export market, the market research is largely undertaken by importers (wholesalers, retail
chain stores,departmental stores etc.). In the absence of organised market research by
wholesalers (along withlow development of retail chain stores) direct entry into domestic market
requires substantialresources.
Second, greater uncertainty exists in the domestic market in the sense of marketvolatility – lack
of information on evolving fashion requirement, demand in particular marketand less availability
of assurance instruments (letter of credit, agents, quality inspection etc.).
Third, importers place relatively larger orders in specific frequency (seasons) whereas domestic
wholesalers order in small batches and at less regular frequency.
In this scenario, the size of market, type and quality of product to be manufactured broadly
determines the choice of production technology in different market segments. However, the
process of technology adoption and technical change therein is influenced by the existing
institutions with its specific incentive and disincentive structures which are embedded in the
culture (caste specificity of traditional footwear production) and other institutions that are

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Historical realities (You, 1995). The size distribution of firms and changes in it is the outcome o
fate interplay of these various factors and institutions.
This study is organised in the following fashion. First, we discuss the footwear industry
in India in the global context. Second, we present three case studies to get a complete picture of
the complexity and dynamism of this industry. Last, we pinpoint issues that have implication on
the employment size distribution of firms.
Most of the exporting firms concentrate on men’s and women’s footwear and only few of
They specialize in children footwear. Children footwear requires larger variation in size, colour
And stringent norms of different chemicals used. Most of the raw materials are sourced from
local merchants and only in few cases leather and other accessories are imported. In large
exportunits production goes on almost throughout the year but however the peak period last for
six months as footwear supplied go for summer and autumn season.
The leather industry is one of the oldest traditional industries. It has several components like
tanning, footwear & leather products including garments.
Modern leather industry began with British governments direct encouragements.
First modern tanning was established in 1857(Kumar, 1997).
The first modern footwear industry was started in 1887. However, the footwear industry was
largely based on traditional artisan mode. In the industrial policy of 1967, the leather industry
including footwear was reserved for small scale sector.
In late 1970s and early1980s, 100 per cent export-oriented footwear industries in larger scale
were promoted and that Allowed larger scale industries to get established afresh.
Only in the month of June in 2001, the Leather industries were de-reser

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Rapid growth in high and medium-end shoe market
Organized retail scale in India only occurs recently. According to Pal, Bata is one of the first
brands to implement franchised operation and currently, almost all sports shoe brands, including
Puma, Adidas and Nike, are operated in this mode. Indian high-end sports shoe and garment
market is expected to achieve 20% growth rate this year.
As indicated by Sushil Dungarwal, executive president of The Loft (forerunner in brand shoe
stores), current market is shifting from low-price shoes to medium and high-end products, thus
attracting a lot of foreign shoe brands to open stores in India. Recently, Clarks opened its
exclusive shoe store in India and other brands such as Lotto, Marco Ricci, Valis and Tommy
Hilfiger have achieved outstanding performance. Loft is operating more than 130 Indian and
international prestigious shoe brands, becoming a platform for most international brands to enter
Indian market.
Most international shoe brands enter Indian market through different retail channels, including
exclusive stores and stores dealing in multiple brands. According to Dungarwal, Clarks has its
exclusive store and has formulated its marketing strategy; Tommy Hilfiger also launches series
shoes through its exclusive store. Other brands such as Ecko may also market their products
through two types of stores. As indicated by Dungarwal, Indian high quality shoe market
promises great potential. India has a population of one billion. If every Indian buys a pair of
USD 15.5 shoes, this makes a huge market. He believes thousands of shoe stores will be opened
in India in the next 5-10 years.

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Top ten footwear consumption all over the world
Sports shoe market is also experiencing a booming growth. Many international brands such as
Puma, Adidas and Nike are planning to expand market in India. Holding 47% market share in
Indian high-end sports shoe market, Puma already has about 130 stores there and is planning to
open a new store every week to fully cover large and small cities in India. India is also the largest
market for Adidas in Southeast Asia. This brand has opened 80 franchised stores in various
regions in India. Italian brand United Coloursof Benetton that has maintained a low-key attitude
in past years is planning to expand its market in India and will update and expand their existing
stores.

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POLICY IMPLICATIONS
. Innovative Quality:
There should be more stylish feature added by the companies so that it provide unique
advantage to the customer
Time saving facility for high income group:
The company should make effort to save the time of high income group that the can
stay with the brand.
Discount during season time:
The companies should introduce new schemes and offers to customer to attract the
min season time, so that everyone can purchase during season time
More advertisement: The companies should adopt the strategies to increase the
awareness among the customers by putting extra efforts on commercial advertisement so
they can be more successful in future.

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FAMOUS BRAND OF SHOES IN INDIA
Nike
Nike is the largest seller of athletic footwear and apparel worldwide by sales. The company
specializes in the development and sale of athletic footwear, apparel and equipment, which
together totaled approximately $19.2 billion in sales during Nike's fiscal 2009. Footwear is
Nike's largest product category, representing 53.7% of the company's revenue. In addition to its
namesake Nike brand, the company also develops and markets footwear and apparel products
under the Cole Haran, Converse, Hurley International, and Umbro Inc. brand names. Nike sells
its products in over 180 countries worldwide through its company-owned retail stores and
internet sites, as well as through retailers like Foot Locker (FL) and Dick's Sporting Goods
(DKS). The company divides its sales into four regions across the globe- the United States,
Europe, Middle East and Africa (EMEA), Asia Pacific, and Central and South America. In 2009,
these regions accounted for 34.1%, 28.7%, 17.3%, and 6.7% of Nike's revenue, respectively.
1964 Nike's predecessor, Blue Ribbon Sports, is incorporated in Oregon.
1971 The Swoosh first appears on Nike shoes
1978 Tennis 'bad boy' John McEnroe is signed by Nike to an endorsement contract.
1981 BRS, Inc. merges into Nike, Inc. on December 31, and the company officially
becomes known as Nike, Inc.
1986 Corporate revenues surpass $1 billion for the first time.

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1989 Nike enters the European football market, signing a kit deal with Paris Saint-
German .
Corporate governance
Current members of the board of directors of Nike are: Mark Parker, Timothy D. Cook, Ralph D.
DeNunzio, John G. Connors, Jill Ker Conway, Alan B. Graf, Douglas G. Houser, Jeanne P.
Jackson, Philip Knight, Orin C. Smith, and John Thompson.
Rivalry and competition
Because Nike creates goods for a wide range of sports, they have competition from every sports
and sports fashion brand. Initially, Nike had no direct competitors because there was no single
brand which could compete directly with Nike's range of sports and non-sports oriented gear
until Reebok came along in the 1980s. Reebok now has merchandising contracts with with the
National Football League and the National Hockey League in the United States, and was
purchased in 2006 by Adidas.
Trademarks
The legendary 'swoosh' symbol, a Nike trademark, was designed by a graphic artist student at
Portland State University named Carolyn Davidson for $35. She did, however, later receive Nike
stock and a golden 'swoosh' ring.

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INTRODUCTION TO ADDIDAS
Adidas is a German sports apparel manufacturer, part of the Adidas Group, which is the second
largest sportswear manufacturer worldwide. The company was named after its founder, Adolf
(Ad) Dassel, who started producing shoes in the 1920s in Herzogenaurach near Nuremberg with
the help of his brother Rudolf Dossier who later formed rival shoe company PUMA AG. It
registered as adidas AG on 18 August 1949 (with lower-case lettering). The company's clothing
and shoe designs typically feature three parallel stripes, and this same motif is incorporated into
Adidas's current official logo. The company revenue for 2005 was listed at 6.6 billion euro, or
about 8.4 billion U.S. dollars.
Corporate history
The Tapie affair
After a period of serious trouble following the death of Adolf Dassler's son Horst Dassler in
1987, the company was bought in 1990 by French industrialist Bernard Tapie, for 1.6 billion
French francs (now €243.918 million), which Tapie borrowed. Tapie was at the time a famous
specialist of rescuing bankrupt companies, a business on which he built his fortune.
Tapie decided to move production offshore to Asia. He also hired Madonna for promotion. In
1992, Tapie was unable to pay the interest from his loan. He mandated the Crédit Lyonnais bank
to sell Adidas, and the bank subsequently converted the outstanding debt owed into equity of the
enterprise, which was unusual for then-current French banking practice. Apparently, the state-
owned bank had tried to get Tapie out of dire financial straits as a personal favour to Tapie,
reportedly because Tapie was a minister of Urban Affairs in the French government at the time.

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Robert Louis-Dreyfus became the new CEO of the company. He is also the president of the
Olympique de Marseille football team, a team Tapie owned until 1993. Tapie filed for personal
bankruptcy in 1994. He was the object of several lawsuits, notably related to match fixing at the
football club. He spent 6 months in La Santé prison in Paris in 1997 after being sentenced to 18.
Post-Tapie era
From left to right: The classic trefoil, modern performance and sport style (fashion) logos used
by Adidas.
In 2003, Adidas filed a lawsuit in British court challenging Fitness World Trading's use of a two-
stripe motif similar to Adidas's three stripes. The court ruled that despite the simplicity of the
mark, Fitness World's use was infringing because the public could establish a link between that
use and Adidas's mark.
In September 2004, top English fashion designer Stella McCartney launched a joint-venture line
with Adidas, establishing a long-term partnership with the corporation. This line is a sports
performance collection for women called "Adidas by Stella McCartney", and it has been
critically acclaimed.
Also in 2005, on May 3, Adidas told the public that they sold their partner company Salomon
Group for €485 mn to Amer Sports of Finland.

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Criticis
In April 2006, Adidas came under fire from Asian-American groups for releasing a limited
edition Y1-HUF shoe that contained a typical early 1900s Asian caricature. Adidas responded by
labeling the criticisms as a serious misinterpretation, and refused to withdraw the line of shoes.
The artist, Barry McGee, is himself half Chinese and had drawn the caricature intending it as a
younger self portrait. McGee thought it would be cool to have a picture of himself on a shoe.
Other Adidas sponsorships
Adidas are the apparel sponsors for two clubs in the Australian Football League - the Adelaide
Football Club and the Collingwood Football Club. The guernsey design for both of these clubs is
rather technologically advanced for AFL clubs, with the material designed to reduce sweat. The
guernseys do not feature the three-stripe design as such, although Adelaide's jumper design
features three colors in repeated horizontal stripes, and Collingwood's design features three white
verticle stripes on a black background.
"Impossible is nothing"
"Impossible is nothing" is the current mainstream marketing slogan for Adidas.

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INTRODUCTION TO PUMA
PUMA is a German-based shoe company that produces sportswear and specializes in making
athletic shoes. It employs nearly 8,000 people and its products reach as many as 80 countries
around the world. PUMA sponsors many individual athletes, such as Olympic champion Usain
Bolt of Jamaica and also sponsors a large number of national and club teams in sports ranging
from soccer to cricket.
Puma, also known as Puma Aktiengesellscaft Rudolf Dassler Sport, is a German footwear,
apparel, and accessories manufacturer. Puma has retailers, department stores, and boutiques in
over 80 countries and has opened several Concept stores in metropolitan cities. The roots of
Puma brand stretch back to the mid 1920's when Adi and Rudolph registered their family shoe
enterprise in Herzogenaurach, Germany, but after World War II, during which Rudi Dassler had
spent time in a POW camp, the Dassler brothers began a legendary feud, causing Rudolph to
leave the company and found a rival company across town. Rudi Dassler named his company
Puma Aktiengesellscaft Rudolf Sport (Puma) while brother Adi incorporated as Adidas.
In 1948, Puma released their first shoe, the PUMA Atom to the market and to the West German
football team. By 1950 Puma had established export ties to the United States, and in 1958
PUMA's signature formstripe was introduced. This would begin the intense battle between Puma
and Adidas to get their shoes onto the feet of world-class athletes that would span the next
several decades. More

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1969
Joe Namath, quarterback for the New York Jets, goes to Super Bowl III wearing Puma shoes.
1970
Pele wins a third World Cup title, wearing the Puma King.
1976
Puma introduces its S.P.A. technology.
1981
Marcus Allen of the Oakland Raiders is one of many NFL stars to play in Puma shoes.
1982
Armin A. Dassler invents the Puma Duoflex sole.
1986
Puma goes public and company stock is offered on the Munich and Frankfurt stock exchanges.
1989
Rudi Dassler's sons sold Puma to the Cosa Lievermann Group who in turn sell the majority stake
to the Aritmos Group of Sweden.
1989
Puma launches the "Trinomic" sport shoe system.
1990
Puma introduces a system for children's shoes with a midsole window which allows growth to be
monitored.
In 1993 Jochen Zeitz was appointed as CEO & Chairman of the Board and the German factories
were closed. Over the next few years, Zeitz redefined Puma's focus on regaining control of
various markets. A high-power management team was recruited and a three year business plan
was introduced. In Phase I and II, a solid financial foundation was established. After Phase I and
II were completed, Puma had 1 billion Euros in sales and moved into Phase III ahead of
schedule. Phase III's goal was to explore the potential of Puma brand and generate profitable
growth of the company.. A substantial amount of their profits is invested in relationships and

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surroundings. Puma's major technological innovation came in 1996 in the formed of Puma Cell,
a structural arrangement of hexagonal cells like a honeycomb in a beehive. Track champion Lyn
ford Christie (Britain) was the first sponsored athlete to put the Puma Cell to the test during
training.
Brand Strategy
"To be the brand that mixes the influences of sports, lifestyle, and fashion."
Brand Mission
"To become the most desirable Sport lifestyle brand by fusing the creative influences from the
world of sport, lifestyle and fashion."
Famous Puma Products
Puma Roma, Puma Suede, Puma Sky II, Puma Basket, Puma Clyde, Puma Speed Cat, and Puma
Easy Rider.
Customer Satisfaction
“Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a
product’s perceived performance in relation to his or her expectation “
As the definition makes it clear, satisfaction is a function of perceived performance and
expectations. If the performance falls short of the expectations of the customer, the customer is
dissatisfied.
If the performance exceeds the expectations, the customer is highly satisfied or delighted.
Many companies are aiming for high satisfaction because customers who are just satisfied still
find it easy to switch, when a better offer comes along. Those who are highly satisfied are much
less ready to switch. High satisfaction or delight creates an emotional affinity with the brain, not
just a rational preference. The result is high customer loyalty.
In this highly competitive world customers plays a very important role. Thus, if a company
wants to survive then it should look forward to the determinants of customer satisfaction.

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Though it is a very subjective issue that differs from individual to individual yet, identifying
some basic parameters of customer satisfaction is important.
Satisfaction is a person’s feeling of pleasure and disappointment resulting from comparing a
product’s perceived performance in relation to his or her expectations. It is only the customer
delight that marketer aims for.

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Liberty Shoes Limited (LSL) is an Indian shoe company, based in mathura, Uttar
Pradesh.Established in 1954, today the company through its six manufacturing units collectively
produces, 50,000 pairs of footwear a day, sold through 6,000 multi-brand outlets and 350
exclusive showrooms, and has a presence in 25 countries, with 50 showrooms outside
India.Tejpal Singh became the CEO of LSL in 2012, the year when the company celebrated its
golden jubilee, the company had two Executive Directors, Tejpa sigh and Bhavana Sharma .
History
Liberty Shoes Ltd. was established on the 25th of December, 1954 in Mathura, Uttar Pradesh
(India) .
It was predominantly focused in the export of shoe uppers till the early '80s, when the Indian
domestic market started to show promise, that is when in 1982, the company set up a unit to
exclusively manufacture footwear for the domestic market, at an investment of Rs 3 crores. Its
sport shoes range manufactured using polyurethane technology, though eventually set a
precedent for the domestic market was initially considered a risky proposition as it was priced at
Rs 300 a pair, compared with conventional canvas shoes selling at Rs 50. However, by 2010
Liberty had become a Rs 35-crore company.
'Force 10', Liberty's first sub-brand, was launched in August 1990, a time when a casual footwear
wave sweeping the Indian market. By 1994-95, Force 10 became Liberty's flagship brand in
value, notching up sales of Rs 32 crore, it the coming years, it not only help the company
establish its name the domestic footwear market, but also paved the way for nine other sub-
brands and a firm foothold the mass family footwear segment, till now led by Bata, now Liberty
was the country's second largest footwear company after it.

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The company saw major expansion in the 2000s, both in retail and manufacturing bases, leading
to a sharp growth, in the year 2002-03, the company posted a retail turnover of Rs 400 crore.
Also in April 2003, the Liberty Group underwent an important restructuring and its product
portfolio was also revamped. As a part of the restructuring process, the company split its
manufacturing and retail business in January 2004, with Liberty Shoes as the holding company
for its shoe business and a subsidiary Liberty Retail Revolution Ltd for its retail business, which
established a new retail channel through "Revolutions Stores", which were set up at in Mumbai,
Kolkata, Hyderabad and Chennai. At the same time it ventured into high fashion, by tying up
with fashion designers including Rohit Bal, Rajesh Pratap Singh, Rina Dhaka, Rohit Gandhi,
Ashish Soni and Suneet Verma to develop footwear to match their clothing lines
LSL produces more than 50,000 pairs of footwear a day covering virtually every age group and
income category. Products are marketed across the globe through 150 distributors, 350 exclusive
showrooms and over 6000 multi-brand outlets, and sold in thousands every day in more than 25
countries. After 50 years of its existence, today Liberty produces footwear for the all age groups.
Currently, LSL is headed by Mr. Adesh Gupta as its CEO. It is a part of the 'Liberty Group'
which includes other associate companies - Liberty Retail Revolutions Limited and Liberty
Whiteware.
Manufacturing
Liberty's manufacturing base includes six facilities spread across the numerous states, two in
mathura (Uttar pradesh) where its primary and the largest manufacturing units are situated,
Paonta Sahib, (Himachal Pradesh) with two units and Roorkee (Uttarakhand). The company has
avoided locations in the conventional Indian shoe manufacturing locations such as Agra, Kanpur,
Noida, Chennai etc.
Brands
FOR MEN: Coolers, Fortune, Force 10, Gliders and Windsor
FOR WOMEN: Force 10, Gliders, Senorita and Tiptopp
FOR KIDS: Footfun, Force 10, Gliders, Prefect
SAFETY SHOES: Freedom, Warrior and Workman

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NIKE VS ADIDAS VS PUMA
The shoe and athletic apparel market is dominated by three major companies. Nike, Puma and
Adidas feature premium athletic apparel designed to enhance the performance of athletes in all
the major sports. The companies battle each year for consumers and market share, as well as
spend millions in research and development to better their products.
Pro Level
Nike, Puma and Adidas offer athletic apparel to professional athletics. All three companies are
involved in shoe wars for the services of professional basketball players, which provide
marketability and exposure to massive audiences. Basketball shoes comprise a significant
percentage of market share, and these companies will spare no expense to sign the latest and
greatest basketball star. The companies also supply pro football and baseball players with gear,
along with a burgeoning golf division for Nike and Adidas.
Nike
Nike is recognized internationally as a leading manufacturer of innovative footwear and
performance enhancing apparel. Phil Knight, Nike's founder and CEO, has been especially
supportive of his alma mater, the University of Oregon. The Knights and Nike have initiated
several philanthropic initiatives to enhance the services, equipment and apparel provided to
Oregon student-athletes. This, in turn, has given Nike even greater visibility and exposure among
high level athletes. Oregon's equipment is cutting edge, and its athletic teams constantly employ
trend-setting designs and features.
Adidas
Adidas has long been considered an international brand but has made significant strides in the
U.S. Their golf apparel division has enhanced its offerings, and now produces clothing, shoes
and accessories for many touring professionals. This has seen a great trickle-down effect into the
amateur game. Adidas has also signed major endorsement contracts with many U.S. colleges,
including the University of Michigan and the University of Notre Dame, to play and promote the
company's apparel.
Puma
Puma has struggled at different times with Nike and Adidas beginning to differentiate
themselves, but the company has made a push by focusing on its professional basketball, football
and hockey equipment. Puma hockey has several innovations that bolster its usage rate in the
National Hockey League and minor pro leagues, while Puma football is on a similar upswing.
The NBA appeals to most sneaker consumers, and Puma has made a push in this area as well,
with several shoes endorsed by the top level players.

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Definition of Customer
There are two distinct types of customers as the point of view of an organisation.i.e
. External and internal.
Internal customers are within the company-the colleagues working together for delivering a service or product
for the external customer.
An external customer may be an individual or an enterprise that hires or purchases the product(s) or service(s)
from another person or business in exchange of money. To capture customers, a business must try to find out
what people want, how much and how often they will buy and how their post-purchase satisfaction will be
ensured. In this highly competitive world customers plays a very important role.
Customer Reinforcement
Reinforcement is a term in behavior analysis for the process of increasing the rate or probability
of a behavior (e.g. pulling a lever more frequently) by the delivery or emergence of
a stimulus (e.g. a candy) immediately or shortly after the response. Reinforcement increases the
likelihood of behavior such as a purchase being repeated.
Customer satisfaction is at the heart of the selling process. One estimate is that it costs five times
as much to attract new customers as it does to keep an existing one. The relationship between the
customer and the organization is, therefore, an important one.
Building customer relationships can be seen as moving up a ladder. At the top rung of the ladder
are your loyal customers.

27. 27
REINFORCEMENT
POSITIVE NEGATIVE
Positive Reinforcement is an increase in the future frequency of a behavior due to the addition of
a consequence immediately following a response. It is a pleasent or desired consequence for any
organisation. Because reinforcement increases the likelihood bof behavior such as a purchase
being repeated.
I. Negative Reinforcement is an increase in the future frequency of a behavior when the
consequence is the removal of an aversive ( negative) stimulus.

28. 28
SWOT analysis of Indian footwear industry
STRENGTHS
1.Existence of more than sufficient productive capacity in tanning.
2.Easy availability of low cost of labour.
3.Exposure to export markets.
4Managements with business background become quality and environment
conscious.
5 Presence of qualified leather technologists in the field.
6. Comfortable availability of raw materials and other inputs. Massive institutional support for
technical services, designing, manpower development and marketing.
WEAKNESSES
1.Low level of modernization and up gradation of technology, and the integration of developed
technology is very slow.
2.Low level of labour productivity due to inadequate formal training / unskilled labour.
Horizontal growth of tanneries.
3. Less number of organised product manufacturers.
4.Lack of modern finishing facilities for leather. Highly unhygienic environment.
5.Unawareness of international standards by many players as maximum number of leather
industries are SMEs. Difficulties in accessing to testing, designing and technical
services.
6. Environmental problems. Non availability of quality footwear components Lack of fresh
investment in the sector.
7. Uneconomical size of manufacturing units.

29. 29
8.Competition among units vying for export orders leading to
undercutting. Little brand image.
9.Poor labour productivity.
10.Lack of awareness about consistent in
plant training and retraining- Inconsistent quality high rejection
rate Low machine and material productivity.11. Lack of quality job work units Delayed
deliveries and Weak support infra- structure for exports
OPPORTUNITIES
1.Abundant scope to supply finished leather to multinationals setting up
shop in India.
2.Growing fashion consciousness globally.
3.Use of information technology and decision support software to help
eliminate the length of the production cycle for different products
4.Product diversification - There is lot of scope for diversification
into other products, namely, leather garments, goods etc.
5.Growing international and domestic markets.
6.Exposure to newer markets through Fairs/ BSMs
7.Retain customers through quality supplies and timely deliveries
8.Aim to present the customer with new designs, infrastructure, country
& company profiles.
9,Use of modern technology
10.Exhibit strengths in manufacturing, for example, strengths in classic
shoe manufacturing, hand crafting etc.
11.De-reservation of the footwear sector.

30. 30
THREATS
1.Entry of multinationals in domestic market.
2.Stiff competition from other countries.(The performance of global
competitors in leather and leather products indicates that there are
at least 5 countries viz, China, Indonesia, Thailand, Vietnam and
Brazil, which are more competitive than India.)
3.Non- tariff barriers - Developing countries are resorting to more and
more non – tariff barriers indirectly.
4. Improving quality to adapt the stricter international standards.
5. Fast changing fashion trends are difficult to adapt for the Indian

31. 31
RESEARCH METHODOLOGY
Research Design
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure
Research Design is the conceptual structure within which research is conducted. It is the overall
operational pattern or framework of the project that stipulates what information is to be collected
from which sources by which procedure.
TYPES OF RESEARCH
DESIGN
EXPLORATORY DESCRIPTIVE EXPERIMENTAL
& RESEARCH
RESEARCH
DIAGNOSTIC DESIGN
DESIGN RESEARCH DESIGN
1. Exploratory Research :- To gain familiarity with a phenomena or to achieve new in sight
into it. Studies with this object in view are termed as exploratory or formularize research
studies.

32. 32
2. Descriptive Research: To portray accurately the characteristics of particular individual ,
situation of a group. Studies with this object are view is known as descriptive research studies
3. Experimental Research: To determine the frequently with which something occur or with it
is associate with sometime else. Studies with this object in view are known as diagnostic
research studies.
Considering the importance of decision areas, it was decided to undertake an exploratory survey.
Exploratory research is concerned with discovering the general nature of the problem and the
variables that relates to it
OBJECTIVES OF THE STUDY
In this era of cut throat competition, no company can even survive in the market place without
knowing its and its products strengths and weaknesses. It has to fortify itself against threats from
the environment and exploit its strengths or increase profits. And in order to do so, the company
has to conduct regular surveys to know the customer’s opinions, needs, and preferences
Primary Objective:
To find out the decision making process of individual while purchasing sports shoe.
To find out the attributes which affect the purchasing decision of individual.
To find out repetition level of customer after the purchase of the brand.
To find out the brand loyalty of customer towards their brand.
Secondary Objectives:
To understand the Consumer Awareness regarding different brands of sports shoe.
To understand the Consumer’s Sphere of Knowledge
To find out the buying behavior of customer
To find out the consideration which one take in to mind while purchasing a product.
To find out media which influence the customer decision process.

33. 33
Type of the study
The present study is Exploratory in nature, as it seeks to discover ideas and insight to bring out
new relationship. Research design is flexible enough to provide opportunity for considering
different aspects of problem under study.
DATA COLLECTION
After the research problem has been defined and the research design has been chalked out, the
task of data collection begins. The data can be collected mainly through primary sources, but it
was supplement with secondary data.
Primary data collection:
Primary data is the data which is collected through observation or direct communication with the
respondent in one form or another. These are several methods for primary data collection like
Observation Method, Interview Method, through schedules, through questionnaires and so on.
Secondary data collection methods:
Secondary data is collected through
Magazines
Journals
Newspapers
Websites
SAMPLING DESIGN
It includes size of sample & the technique that we used for selecting the different items from the
sample. A sampling design is a definite plan for obtaining a sample from a given population. It
refers to the technique that the researcher adopts in selecting items for the sample.

34. 34
It should be ensured in the sampling process itself that the sample selected is representative of
the population.
Sample size
By sample size we mean that the number of people to be selected from the population to make a
sample. A sample size should be sufficient enough that can serve our purpose.
It should have Flexibility, and Reliability, Availability.
My sample size is of 100 people of Ambala those are using the Sports shoes.
Sample area
Sample area is individual customer of Ambala whose Post purchase satisfaction has to be
examined.
LIMITATIONS OF THE STUDY
Although sincere efforts were made to collect maximum and authentic information
from the respondents, even then this report is subject to limitations and problems.
There were following constraints of the study which can be explained as:-
Time availability:- The time of research was short, due to which many fact remained
untouched.
Small area: The Area undertaken in research was Ambala only. But to do a complete research a
wide area is required, so the area is also a constraint of the study.
Sample Size : The secondary limitation was the small size of customer so due to small samples
out of big universe the results may not be completely correct
Biased responses:- While collecting data some of the consumers did not fill the questionnaire
as their true behavior. This was also be a constraint of the study.

35. 35
Economic Constraints:- Resources available with me were limited in respect of time and
monetary terms.

36. 36
DATA ANALYSIS AND INTERPRETATION
CONSUMER PROFILE
Q.1 Name _________________________________________________
Sex______________________________________________
Age No of respondent
18-25 34
26-40 28
41-55 20
56 and above 18
40
35
30
25
20
Series 1
15
10
5
0
18-25 26-40 41-55 56 and above
INTERPRETATION
From the above table it is found that out of 100 respondents 34 are between age of 18-25, 28
respondents are 26-40 age, 20 respondents are 41-55 and 10 respondent are above 56

37. 37
Q.2 what is your occupation?
Occupation No of respondent
Businessman 20
Professional 16
Service man 6
Agriculturist 10
Any other 48
60
50
40
30
Series 1
20
10
0
businessman professional agriculturist service person any other
INTERPRETATION
From the above table it is found that out of 100 respondents 20 are businessman,16 are
professionals,10 are agriculturist,6 are service person and remainins are related to others kind of
business.

38. 38
Q.3 What is your annual Income?
Option No of respondent
Below 50000 0
50000-100000 6
100000-150000 24
150000-200000 30
Above 200000 40
45
40
35
30
25
20 Series 1
15
10
5
0
below50000 50000 to 100000 100000 to 150000 above200000
Interpretation:
From the above table it is prove that 6 respondents are having the income of between 50000-
100000,24 respondents are having the income of between 100000-150000,30 respondents are
having the income of above 200000.and no one is below the income of 50000 rs per annum

39. 39
Q.4 which brand of sports shoes you own?
Brand name No. of respodent
Nike 28
Addidas 34
Puma 18
Other 20
40
35 34
30 28
25
20 Series 1
20 18
Column1
15 Column2
10
5
0
nike adidas puma other
Interpretation:
From the above table it is found that 28 respondent choose shoe of nike brand, 20 respondent
choose the shoe of puma,18 respondent choose the other company shoe but most of the customer
are more loyal to the shoe of addidas

40. 40
Q.5 What is the most important factor while you purchase sports shoes?
Factors No of respondent
Price 24
Brand name 20
Availability 32
Design 15
Scheme 9
Factors
35
32
30
25 24
20
20
15
15 No. of respodent
9
10
5
0
price brand name availability design scheme
Interpretation:
10 respondent prefer price ,14 respondent prefer brand name,8 respondent prefer avilability and
10 respondent prefer design,8 respondent prefer scheme.

41. 41
Q.6 Which of the following members play key role in decision making of purchase of
sports shoes?
Factors No of respondent
Friends 32
Family 25
Coach 20
Salesperson 30
Other 12
35
32
30
30
25
25
20
20
15 Series 1
12
10
5
0
friends family caoach salesperson other
INTERPRETATION
Key role in decision making-32 influence by friends,20 coach,30 sales person and 12 others.

42. 42
Q.7 Which of the following influence you in buying a particular brand of sports shoes ?
Factors No of respondent
Coupon 36
Discount 20
Free gift 8
Warranty 38
Other 6
40 38
36
35
30
25
20
20
Series 1
15
10 8
6
5
0
coupon discount free gift warranty other
INTERPRETATION
Influence by other persons in buying sport shoes-36 coupon, 20 discount, 8freegift, 38 warranty
and 6 others.

43. 43
Q8. To what extent price tag influences your purchase decision of sports shoes?
Factors No of respondent
Fully satisfy 36
Satisfied 20
Dissatisfied 16
Fully dissatisfied 12
Neutral 16
40
35
30
25
20
Series 1
15
10
5
0
fully satisfy satisfied neutral dissatisfied fully dissatisfied
Interpretation-The price tag influence purchase decision 36respondent says fully satisfied, 20
says satisfied, 16 neutral,16 dissatisfied and12 fully dissatisfied.

44. 44
Q.9 Are you satisfied with comfort level of your sports shoes?
Factors No of respondent
Fully satisfied 40
Satisfied 36
Dissatisfied 8
Full dissatisfied 4
Neutral 12
45
40
35
30
25
20 Series 1
15
10
5
0
fully satisfied satisfied neutral dissatisfied fully dissatisfied
Interpretation-comfort level of sports shoes 40 respondent says fully satisfied, 36 satisfied, 12
neutral, 8 dissatisfied and 4 fully dissatisfied.

45. 45
Q.10 What factor may influence you to switch over to some other brand?
Factors No of respondent
Price 32
Brand name 36
Reference group 20
Promotional scheme 12
40
36
35 32
30
25
20
20
Series 1
15 12
10
5
0
price brand name reference group promotional
schemes
Interpretation-factor influence switch over other brand 32 respondents says price, 36 says brand
name, 20 reference group, 12 promotional schemes.

46. 46
Q.11 how is your post purchase experience with your sports shoes?
Factors No of respondent
Excellent 28
Very good 32
Good 24
Average 10
Poor 6
35
32
30 28
25 24
20
15 Series 1
10
10
6
5
0
excellent very good good average poor
Interpretation-post purchase experience with sports shoes 28 respondent says excellent, 32 very
good, 24 good, 10 average and 6 poor.

47. 47
Q.12 you prefer to purchase sports shoes on
Factors No of respondent
Sale discount period 54
Normal period 46
54
52
50
48
46
44
42
sales/discount normal period
period
Interpretation-prefer purchase sports shoes 54 respondents say discount period,46 on normal
period

48. 48
Q.13 Are you satisfied with the durability of your shoes?
Factors No of respondent
Yes 74
No 26
80
74
70
60
50
40
Column1
30
20
10
0
yes no
Interpretation-satisfaction with durability 74 says yes, 26 says no.

49. 49
Q.14 which source of Advertisement is influence to buy a particular brand of sports shoes?
Media No of respondent
Magazine 14
Newspaper 10
Television 32
Internet 12
Other 32
35
30
25
20
15 Series 1
10
5
0
magazine newspaper television internet other
Interpretation-the advertisement influence 14 respondent says magazine, 10 news paper, 32
television, 12 internet, 32 others.

50. 50
Q.15 would you recommend your sports shoes to others?
Factors No of respondent
Definitely yes 48
Probably yes 34
Definitely no 4
Probably no 14
60
50
40
30
20
10
0
definitly yes probably yes definitely no probably no
Interpretation-82 respondent says they suggest shoes to others, 18 says no.

51. 51
Q.16 would you like to give any suggestion for the improvement of your preferred sports
shoes
Option No of respondent
Yes 70%
No 30%
70%of the respondent were interested in giving suggestion regarding their preferred sports shoe
and 30% of the respondents were not interested.

52. 52
Q. 17 if yes than what would you like to change in the preferred shoe?
Option No of respondent
Quality 24
Design 12
Color 10
Price 24
25
20
15
24 24 Series 1
10
12
10
5
0
Quality Design Colour Price
Interpretation From the above diagram it is found that 24 out of 70 people are want to change in
quality, 12 want to change in design of the shoes, 10 want to change in color of the shoes and
remaining want to change in price of the preferred shoe.

53. 53
Q18.Give the rank to the factors according to their preference while you selecting the shoe?
Particulars No of respondent
Color 30
Design 40
Price 10
Brand 20
No of respodent
No of respodent
colour Design Price Brand
INTERPRATATION according to this table 30% select color preference 40% Design
preference is their 10% for price and 20% for band.

54. 54
Q19.Do you think India have a great potential in the shoe market?
Particulars No of respondents
Yes 88%
No 12%
No of respodent
88%
90%
80%
70%
60%
50% No of respodent
40%
30%
12%
20%
10%
0%
Yes No
Interpretation
From the above diagram 88 percent people think that india have great potential in the shoe
market and remaining are not in favors of potential of shoe market in india

55. 55
Q20.Do you think that Indian footwear industry have a need of R&D programs?
Particulars No of respondent
Yes 79%
No 21%
No of respodent
79%
80%
60%
40%
21% No of respodent
20%
0%
No of respodent
Yes
No
Interpretation
From the above diagram 79 percent people are think that Indian footwear industry have a need of
r &d programs in the development of the whole market. And remaining are not in favour of
R&D.

56. 56
FINDINGS
1. Mostly people are influenced by television to buy branded shoe.
2. In India first preference of the customers is price of the shoes.
3. India have a great potential in the footwear industry but India are not fully utilize
their potential
4. Customer want to improve in price and quality of shoe in India
5. Most of the customer are not fully satisfied with their existing shoe and company
should provide the special offers to the customers for increasing their goodwill.
6. The competition is very intense and the increase of the research development and
the advertising can be very highly expensive.
7. In the survey it has been found that addidas is the market leader.
8. Businessman, serviceman and professionals prefer to wear formal shoes because
of status and students like to wear only sports and casual branded shoes.
9. Some customers are not aware about the existing shoe brand so companies should
expense on marketing strategy.
10. No of outlet of the famous brands are limited so companies should expend the
number of outlet.
11. The athletic footwear industry is a strong, market driven industry.

57. 57
CONCLUSION
NIKE has been the major competitor for ADDIDAS. The new stuff of the adidas is
attracting the consumers more which might led adidas at the top spot in the pack in
coming financial year. The preference towards ADDIDAS gas decreased over the last
few years. Only 8% of the market is coverd by adidas which is miserable as per the
brands standards There is restrictive manufacturing in India of branded products and the
branded products are quite expensive as compared to European products. India has huge
potential in the footwear industry. Companies should expand their outlets for making the
goodwill. And Indian customers are more price sensitive rather than other countries so
compnies should provide the less price shoe with high quality if they want to increase
their productivity. So in the end we can say footwear industry is on growing trends.

58. 58
SUGGESTIONS
1. Department stores are the prime sales and marketing channel for branded shoes. In
addition, store decorations
2. Product displays should be designed to create a strong first impression.
3. Seasonal promotion campaigns, like special discounts and advertisements, could be
employed.
4. New lines of collections should be introduced for festivals.
5. The prices of branded shoes must be reduced to increase sales.
Bibliography
BOOKS:
1. J. Rabolt Nancy, R.Solomon Michael. “Consumer Behaviour In Fashion
2. Sekaren Uma14, “Research Methods For Business”
3. Kothari C.R. “Research Methodology Methods and Techniques”
4. Jain T.R ., “Statistics for MBA”
5. Jain P.C, Bhatt Monika “Consumer Behaviour”
6. Assael Henry, “Consumer Behaviour-A Strategic Approach
(2005 Indian Edition)”

59. 59
7. I Hawkins Del, J Best Roger, Amit Mookerjee, “Consumer Behaviour-Building
Marketing Strategy.”
8. David L. Loudon And Abert J. Della Bitta, “Consumer Behaviour And Concepts
And Applications”
9. Kotler Philip11, “Marketing Management”
10. Evans Martin, Jamal Ahmad, Foxall Gordan,“Consumer Behaviour”
11. Kotler Philip, Keller Lane Kevin, Koshy Abraham and Jha
mithileshwar),“Marketing Management”
12. Leon G. Schiff man and Lesli Lazar kanauk“Consumer Behaviour”
13. Woodruffe Helen,“ Service Marketing”
14. K.Rama Mohan Rao,“Service Marketing”
15. Kotler Philip, Keller Lane Kevin, Koshy Abraham and Jha
mithileshwar),“Marketing Management”
Websites
16. http://www.faqs.org/abstracts/Business-international/Improving-postpurchase-
satisfaction-in-industrial-distribution-channels.html
17. htpp://www.Textile%20and%20apparel%20industry%20sees%20three-
fold%20growth%20%20Apparel%20and%20textile%20news%20&%20analysis.htm
18. http://www.nike.com/
19. http://www.adidas.com/

60. 60
20. http://www.avn.com
21. www.puma.com
22. http://articles.sitepoint.com/article/satisfaction-7-steps
23. http://www.getgyan.com/show/2626/Consumer_satisfaction_should_be_achieved_at_any
_cost
24. http://blog.commlabindia.com/elearning/positive-reinforcement
25. http://tutor2u.net/business/marketing/buying_decision_process.asp

61. 61
ANNEXURE

62. 62
Questionnaire
Q.1 Name _________________________________________________
Sex______________________________________________
Age
li) 18-25 ii) 26-40
iii) 41-55 iv) 56 and above
Q.2 Occupation
i) Businessmen
ii) Professional iii) Service Person
iv) Agriculturist v) Any other
Q.3 Income (Yearly Family income in Rs.)
i) Below 50000
ii) 50001 to 100000
iii) 100001 to 150000
iv) 150001to 200000
v) Above 200000

63. 63
Q.4 Which brand of sports shoes you own?
Nike Adidas puma
Other
Q.5 What is the most important factor you consider to purchase sports shoes?
Price Brand name Availability
Design Scheme
Q.6 Which of the following members play key role in decision making of purchase of sports
shoes?
Friends Coach
Salesperson Other
Q.7 Which of the following influence you in buying a particular brand of sports shoes ?
Discount Free gift
Warranty Other
Q.8 Rank the following factors according to their influence on your purchase of sports
shoes? (Rank-1 = Highest influence)
Price Brand name Availability
Design Scheme
Q.9. To what extent price tag influences your purchase decision of sports shoes?

64. 64
Fully satisfy Satisfied Neutral
Dissatisfied Fully dissatisfied
Q.10 Are you satisfied with comfort level of your sports shoes?
Fully satisfy Satisfied Neutral
Dissatisfied Fully dissatisfied
Q.11 What factor may influence you to switch over to some other brand?
Price Brand name
Reference group Promotional schemes
Q.12 How is your post purchase experience with your sports shoes?
Excellent Very good Good
Average Poor
Q.13 You prefer to purchase sports shoes on
Sale/ discount period Normal period
Q.14 Are you satisfied with the durability of your shoes?
Yes No
Q.15 Advertisement in which of the following influence you most to buy a particular brand of
sports shoes?
Magazine Newspaper Television
Internet Other
Q.16 Would you recommend your sports shoes to others?
Definitely yes probably yes
Definitely no Probably no

65. 65