A Project Report

On

Retail store [Nike]

Submitted in partial fulfillment

of the requirements for the award of degree of
B.Voc (RM)

by

Shaan Vats
Semester-4th
Batch: 2019-22

Under the Supervision of

Project Guide: Nishi Aggarwal

Jagannath University
State Highway-22, Bahadurgarh-Jhajjar Road, Jhajjar, Haryana-124507
Phone: 01276-699700, 01-15
Website: www.jagannathuniversityncr.ac.in
 ACKNOWLEDGMENT

A project is the fruit of experiment and experience and it goes a long way to modeling
a person and gaining a new insight in that field of research.
In this rewarding experience, one recognizes the help and support rendered by kind
heart behind its success.
I would take this opportunity to thank my professor, especially NISHI MAAM who
sincerely guided and supported me in doing this project. I would also like to thank the
marketing team who has given me the relevant information on this topic.
I would also like to show my gratitude towards my family, friends, and all others who
have helped and supported me in doing the project.

Date: 20/ 03/2021

Name: Shaan Vats
 EXECUTIVE SUMMARY

The purpose of this Report is to define the information about a retail store
“Nike”. The objective of this Report is to identify the problems and benefits of
the retail store and discussed in my education program my making a research
Report on Nike retail store. Where we are using primary and secondary data to
prepare this report and find out the analysis on the basis of our own opinion.
 TABLE OF CONTENT

 Introduction to Retail Industry

 Introduction to Retail in India

 Introduction to Nike

 History of Nike

 History of Nike in India

 Various Departments of sections of Nike

 Marketing Mix

 Product line

 Competitors of Nike

 SWOT analysis of Nike

 Types of customer visit the store

 What is visual merchandising

 Location of the store

1. Visibility
2. Placement in the location
3. Availability to transport
4. Presence of the other stores

 Organizational structure

 Promotional techniques

 Human resource of the Nike

 Bibliography
 Conclusion
 OBJECTIVES

Primary objectives:

To study the
 The Merchandise planning.

 The Merchandise mix.

 The Innovational strategies of the brand.

Secondary objectives:

 To study the merchandise kept in the store.

 Quality Check of the observed products.

 Analyzing the market position of the brand.

 Promotional strategies implemented.

 To look for new products and their new features.

 To study the visual merchandising aspect of the brand.

 RETAIL INDUSTRY IN INDIA

Introduction

Indian retail industry has emerged as one of the most dynamic and fast-paced
industries due to the entry of several new players. Total consumption expenditure is
expected to reach nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It
accounts for over 10% of the country’s gross domestic product (GDP) and around
eight% of the employment. India is the world’s fifth-largest global destination in the
retail space.
India ranked 73 in the United Nations Conference on Trade and Development's
Business-to-Consumer (B2C) E-commerce Index 2019. India is the world’s fifth
largest global destination in the retail space and ranked 63 in World Bank’s Doing
Business 2020.
India is the world’s fifth largest global destination in the retail space. In FDI
Confidence Index, India ranked 16 (after US, Canada, Germany, United Kingdom,
China, Japan, France, Australia, Switzerland, and Italy).

Market Size
Retail industry reached US$ 950 billion in 2018 at CAGR of 13% and is expected to
reach US$ 1.1 trillion by 2020. Online retail sales were forecast to grow 31% y-o-y to
reach US$ 32.70 billion in 2018. Revenue generated from online retail is projected to
reach US$ 60 billion by 2020.
Revenue of India’s offline retailers, also known as brick and mortar (B&M) retailers,
is expected to increase by Rs. 10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20.
According to the Ground Zero Series findings of the consulting firm RedSeer, the
retail sector is expected to recover ~80% of pre-Covid revenue (amounting to US$
780 billion) by end-2020.
India is expected to become the world’s fastest growing E-commerce market, driven
by robust investment in the sector and rapid increase in the number of internet users.
Various agencies have high expectations about growth of India’s E-commerce
market.
After an unprecedented decline of 19% in the January-March 2020 quarter, the
FMCG industry displayed signs of recovery in the July-September 2020 quarter with
a y-o-y growth of 1.6%. The growth witnessed in the fast-moving consumer goods
(FMCG) sector was also a reflection of positivity recorded in the overall
macroeconomic scenario amid opening of the economy and easing of lockdown
restrictions.
Investment Scenario
The Indian retail trading has received Foreign Direct Investment (FDI) equity inflow
totalling US$ 3.35 billion during April 2000-September 2020, according to
Department for Promotion of Industry and Internal Trade (DPIIT).
With the rising need for consumer goods in different sectors including consumer
electronics and home appliances, many companies have invested in the Indian retail
space in the past few months.
India’s retail sector attracted US$ 970 million from various private equity funds in
2019.
In September 2020, US private equity firm Silver Lake announced plan to invest Rs.
7,500 crore (US$ 1.00 billion) in Reliance Retail, which marks the second billion-
dollar investment by Silver Lake in a Reliance Industries subsidiary after the US$
1.35 billion investment in Jio Platforms earlier in 2020.
Walmart Investments Cooperative U.A invested Rs. 2.75 billion (US$ 37.68 million)
in Wal-Mart India Pvt Ltd. Walmart Inc. plans to increase exports from India by 3x to
US$ 10 billion by 2027, up from US$ 3 billion at present.
Retail investors boosted their shareholdings in Indian companies to an 11-year high
in September 2020, with first-time investors continuing to add more money into
equities. According to Prime Database, shareholding of retail investors in 1,605 listed
companies hit an 11-year high of 7.01% and witnessed ~3.4 million new ‘Demat’
accounts from July 2020 to September 2020.
In November 2020, One Plus, the Chinese smart phone maker, launched ‘One Plus
Nizam Palace’ in Hyderabad, touted as its largest experience store worldwide that is
spread across 16,000 sq. ft.. The company also announced plans to invest Rs. 100
crore (US$ 13.51 million) towards market penetration across the omni channel retail
business, including extension of offline experience beyond metro cities with new
retail partnerships.

Government Initiatives
The Government of India has taken various initiatives to improve the retail industry in
India. Some of them are listed below:

 Government may change Foreign Direct Investment (FDI) rules in food

processing in a bid to permit E-commerce companies and foreign retailers to
sell Made in India consumer products.
 Government of India has allowed 100% FDI in online retail of goods and
services through the automatic route, thereby providing clarity on the existing
businesses of E-commerce companies operating in India.

Road Ahead
E-commerce is expanding steadily in the country. Customers have the ever-
increasing choice of products at the lowest rates. E-commerce is probably creating
the biggest revolution in retail industry, and this trend is likely to continue in the years
to come. Retailers should leverage digital retail channels (E-commerce), which
would enable them to spend less money on real estate while reaching out to more
customers in tier II and tier III cities.
It is projected that by 2021, traditional retail will hold a major share of 75%,
organized retail share will reach 18% and E-commerce retail share will reach 7% of
the total retail market.

Task 1:
WRITE DOWN A BRIEF INTRODUCTION AND HISTORY OF A
NEARBY RETAIL STORE

INTRODUCTION TO RETAIL

Liberalized financial and political environment in India has prompted a wave of large
number of entrants into the country’s rapidly growing retail industry during the past
few year, without doubt, the retail industry in India is in the throes of radical
restructuring. The fundamental drivers of change are increasing per capita income,
growing GDP, availability of consumer finance and therefore irreversible. Retailing in
general sense consists of business activities that are involved in buying and selling

of goods and services to ultimate consumers for their own use – ranging from Bread
butter to automobiles to apparels to airline tickets.

In India, after agriculture, the retail is the second largest sector that provides enough
employment to Indian workforce. But retailing in India is at cross roads on the one
side, retail sales are making new heights year after year and on the other side,
traditional Indian retailers (Kirana stores) face numerous challenges.

ABOUT NIKE

 It includes apparel, accessories and sports equipment.

 It is a specialty and department store format.

 Area serve worldwide.

 More than 150 stores are there in India.

 Tagline- “ Just Do It”.

 It has 75,500 employees all over the world.

 HISTORY OF NIKE

Nike was founded in 1964 – 1974. Formely named by Blue Ribbon Sports. American
sportswear company headquartered in Beaverton, Oregon. It was founded in 1964
as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at the University of
Oregon, and his former student Phil Knight. They opened their first retail outlet in
1966 and launched the Nike brand shoe in 1972. The company was renamed Nike,
Inc., in 1978 and went public two years later. By the early 21st century, Nike had
retail outlets and distributors in more than 170 countries, and its logo—a curved
check mark called the “swoosh”—was recognized throughout the world.

HISTORY OF NIKE IN INDIA

Nike entered India directly in June 2004, about six years after its main competitor
Adidas.
In addition to monobrand stores, it has presence through 150-odd multi-brand stores
and over 600 mom-and-pop stores. It will also add another 75 mono-brand outlets.
It hopes to widen its market presence through an increase in its ad spend. About 9-
10 per cent of Nike's global revenues go into marketing its products.

ACQUISITION

Nike has acquired and sold several apparel and footwear companies over the course
of its history. Its first acquisition was the upscale footwear company Cole Haan in
1988, followed by the purchase of Bauer Hockey in 1994. In 2002, Nike bought surf
apparel company Hurley International from founder Bob Hurley. In 2003, Nike paid
US$309 million to acquire sneaker company Converse. The company
acquired Starter in 2004 and soccer uniform maker Umbro in 2007.
In order to refocus its business lines, Nike began divesting itself of some of its
subsidiaries in the 2000s. It sold Starter in 2007 and Bauer Hockey in 2008. The
company sold Umbro in 2012  and Cole Haan in 2013. As of 2020, Nike owns only
one subsidiary: Converse Inc.
In February 2021, Nike acquired Datalogue, a New York based company focused on
digital sales and machine learning technology.

TASK 2:
WRITE A NOTE ON VARIOUS DEPARTMENTS/ SECTION OF THE
RETAIL STORES

VARIOUS DEPARTMENTS OF NIKE

 Athletic Footwear
 Apparel Athletic
 Recreational Products
 Sports Equipment

1. Athletic Footwear : These are majorly divided into three major footwears
which are under-

 Men’s footwear
 Women’s footwear
 Kid’s footwear

MEN’S FOOTWEAR

 In this apparel which can see all sort of men’s footwear.

 A variety of men footwear is available in Nike.

 There are a lot of options for an individual to choose and try prior buying.

 It has variety of Athletic and Informal men’s footwear.

 According to the varieties, the price is very affordable and reasonable.

There are the lot of varieties of footwear to be seen in Men’s footwear section.
 WOMEN’S FOOTWEAR

 This apparel has a variety of women’s Footwear.

  Like running shoes, gymming shoes, casual shoes, various athletic shoes,
etc.

Here you can see the varieties in footwear of women’s footwear section.
 KIDS FOOTWEAR

It contains two major categories which are as follows;

 BOYS
 GIRLS

BOYS
 GIRL

2. Athletic Apparel : These are majorly divided into three major apparel
which are under-

 Men’s apparel
 Women’s apparel
 Kid’s apparel

MEN’S APPAREL
Here you can also find jackets and bags.
WOMEN’S APPAREL

KIDS APPAREL
RECREATIONAL PRODUCTS
SPORTS EQUIPMENT
 TASK 3:
LIST OUT THE PRODUCT LINES OF THE RETAIL STORE

MARKETING MIX (4Ps)

Product mix

FOOTWEAR APPAREL EQUIPMENT NATIONAL CLUB GEAR

TEAM GEAR
Boots for headwear Balls Jersey for Club jersey like
striker Brazil, Manchester
united
Mid fielders Tops/Polo Bags England, Real Madrid,
Defenders Jersey Watches Germany, Barcelona,
Sneakers Jackets Spain, etc. Chelsea,
Shorts Liverpool, etc.
 Price mix

This element of the marketing mix identifies the prices that the company applies to
maximize profits while attracting the desired share of the multinational market. Nike’s
investments in technology is linked with a strategy to offer its products at a premium.
Still, the company considers current market conditions in setting its price points and
price ranges.

The following pricing strategies are applied in Nike business:

1. Value-based pricing strategy

2. Premium pricing strategy
 Place mix

This element of the marketing mix outlines the venues where the company’s
products are sold, accessed or distributed. Nike Inc. sells its sports shoes, apparel,
and equipment through a large number of outlets worldwide. For example, these
products are available at major retail stores.

The following places/venues form Nike’s distribution strategy, arranged according to

significance:

1. Retail stores
2. Nike Online Store
3. Niketown retail outlets (company-owned)

Promotion mix

This element of the marketing mix is also known as the marketing communications
mix, and involves the tactics that Nike uses to communicate with its target markets.
The company depends on the effective promotion of its products to maintain a strong
brand image. The company uses promotional tactics to communicate with target
customers about its products, and persuade these consumers to purchase the
products. The following are Nike’s promotional activities, arranged according to
significance:

1. Advertising
2. Personal selling
3. Direct marketing
4. Sales promotions
5. Public relations
 TASK 4:
WRITE THE NAME OF THE COMPETITORS
GRAPH REPRESENTATION OF COMPETITORS IN SALES

TASK 5:
WRITE SWOT ANALYSIS OF NIKE

SWOT ANALYSIS OF NIKE

Nike’s Strengths –
1. Strong Brand Awareness – Nike is one of the most recognizable brands in
the world as its name alone is memorable, easy to pronounce, and very
unique. Its swoosh symbol is easily recognized by everyone. Nike
has captured approx. 31% of the global athletic footwear market.

2. Huge Customer base – Nike has millions of customer from around the world
who loyally follow Nike’s trends, participate in Nike events, and even provide
customer feedback. Due to its huge customer base, Nike’s market cap has
grown to $224 billion as of Feb 2021.

3. Aimed For Sustainability – Nike’s CEO Mark Parker has addressed that
they will continue to acknowledge the environmental issues in the
communities. The CEO ensures that Nike will help to contribute in finding a
solution against these environmental issues.

4. Iconic Relationships – Nike’s long-term partnership with Michael Jordan has

proved to be beneficial in terms of sales for the company. Their collaboration
resulted in “Air Jordan 1 Shoes”. Additionally, Nike teamed up with the
famous basketball player to help design the “Air Jordan 1 Shoes”.

5. Side Brands – Nike’s ability to maintain and enhance its side brands such as
converse and hurley have enabled it to enjoy unparalleled success for
decades.
 6. Low Manufacturing Cost – Most of Nike’s footwear is manufactured in
foreign countries. In the fiscal year 2020, Vietnam produced 50%, China
produced 22%, and Indonesia produced 24% of total Nike’s footwear. Other
operations are in Argentina, Brazil, India, Italy, and Mexico.

Nike’s Weaknesses –
1. Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike
has been consistently targeted regarding their poor labor conditions. These
issues include forced labor, child labor, low wages, and horrific working
conditions that were deemed “unsafe”.

2. Retailers Have a Stronger Hold – Nike’s retail sector makes Nike weak due
to its sensitivity against pricing. 65% of Nike products are sold directly to
wholesalers or retailers. With retailers serving as their core customers, Nike
does not put up a fight against their pricing structures whatsoever.

3. Pending Debts – Although Nike’s income statements prove to be prosperous,

a quick glance at their balance sheet could paint a different picture. Nike is
still facing financial threats. As of Aug 2020, Nike’s total long term debt
was $9.54 billion

4. Dependency on US Market – Even after having established itself globally,

Nike still relies on the U.S Market in terms of sales and revenue. In the fiscal
year 2020, about 41% of Nike’s sales came from the U.S, while the rest of
59% came globally. Despite its fame, Nike depends on the U.S for substantial
sales and growth.

5. Lawsuits: 
 Recently, a former employee accused Nike of discrimination
based on his Croatian origin.
 Four former female Nike employees filed a class-action lawsuit
against the company in August 2018. According to these
women, Nike has a toxic company culture for women. The
women filed their case against the sportswear company claiming
that the company violated the Equal Pay Act. The women said
the company engaged in systematic gender pay bias where men
were paid more than women for the same amount of work.

6. Lack of Diversification: Nike’s over-dependence on sporting apparel or lack

of diversification is a major weakness. The pandemic has discouraged
physical interaction and gathering with sporting event cancelled or postponed.
Several sporting teams are on the brink of collapse. If the crisis discourages
sporting events for longer, Nike’s losses can be catastrophic.
Nike’s Opportunities –
1. Emerging Markets – Although Nike already has a presence in many foreign
countries, there is still plenty of opportunities for Nike. This is
because emerging markets like India, China, and Brazil are gradually
flourishing.
 
2. Innovative Products – Although Nike has produced many products, there is
still a lot to innovate. Nike has extended its reach in technology in association
with fitness and health. Products like wearable technology that monitors
physical activities, is the first step in building innovative technology products.
Combining technology with athletic wear can prove to be beneficial as it is an
aspect of the fashion industry that still hasn’t been explored much.
3. Efficient Integration – The supply and production of Nike’s products depend
on independent manufacturers. The brand can either acquire a few of these or
make some of its own for a more efficient and streamlined supply chain.

4. Cutting ties with big retailers: Nike has decided to cut ties with some of the
biggest multi-brand retailers and wholesale partners. According to the
reports, Nike will no longer work with wholesale retailers such
as Zapoo’s, Dillard’s, Fred Meyer, Bob’s Stores, etc. The step is taken for
better product positioning and greater customer experience.

5. Acquired Artificial Intelligence Start-up – With its vast financial resources,

Nike can acquire small or medium companies or startups. It recently
acquired predictive analytics platform - Celect to expand its online sales
capabilities and predict customer’s shopping behavior.

6. Consumer Direct Strategy –  Nike has accelerated the consumer-direct

strategy, which means shifting its focus to digital business and subsequently
closing physical stores. In fiscal year 2020, 35% of its Nike brand revenue
comes from online sales. Clearly, the pandemic is shaping up how Nike
interacts with its customers. 

Nike’s Threats –
1. Counterfeit Products – Counterfeit products can significantly affect the
revenue and reputation of Nike. The company deals globally and the risk of
counterfeit products has become higher. A number of merchandisers and
retailers offer counterfeit Nike products at lower prices. The low-priced
products are made from low-quality materials but still have the Nike label. This
 can tarnish the image of the brand as the customers might feel that Nike
has started producing low quality products.

2. Increased competitive pressure – Although, Nike is a dominating the

athletic industry, competition, and new emerging brands are still potential
threats to the company. With higher competition ratio, Nike has to spend more
money on marketing and advertising. Nike spent $3.5 Billion specifically on
marketing and demand generation in fiscal year 2020. To overpower
competition, Nike’s safest bet is to design innovative products that are tailored
according to the needs of athletes.

3. Marketing Budget Pressure – Companies like Under Armour and Adidas are

spending more on marketing and advertising campaigns, increasing the
pressure on Nike.

4. Currency Foreign Exchange Risks – Since the brand operates globally, it is

affected by fluctuating foreign exchange rates. Nike reports its financial
earnings in U.S dollars. This affects its revenue as the U.S dollar is exposed
to volatility against other financial currencies.
5. Patent Disputes – Regardless of whether a company is wrong or right, patent
disputes are hotly and fiercely contested in the public domain and expose
some dirty secrets about sides in the dispute. Nike and Adidas have been
engaged in a fierce patent dispute over Primeknit and Flyknit shoes in U.S.
and German courts.

6. Economic Uncertainty – Regardless of the industry, all companies are

susceptible to the negative effects of a global recession. Already, Nike has
registered a 38% decline in sales in 2020 and can drop further in the future if
the recession strikes as hard as predicted by experts.

TASK 6:
TYPES OF CUSTOMER VISIT THE RETAIL STORE

TYPES OF CUSTOMERS VISIT NIKE

 Between the age group of 0-25 are 60%.

 Between the age group of 26-45 are 35%.

 Between the age group of 46 and above are 5%.

 WHAT IS VISUAL MERCHANDISING?

 Visual merchandising is the art of presentation, which put the merchandise in

focus.

 It educates the customer and create desire to buy.

 The objective of the store is sale promotion plan.

 It’s a presentation of a store.

It involves:

 Skill creativity
 Lighting
 Props
 Background
 Interiors
 Flooring
 Glass print
 Color

TASK 7:
EXAMINE THE LOCATION OF THE STORE SITE ON THE
FOLLOWING FACTORS

1. VISIBILITY :

As I went to ambience mall, the Nike was not on the site of visibility, so I
took the help of a guard to identify the exact location of Nike in the mall.

2. PLACEMENT IN THE LOCATION :

One of the branch of Nike is located in Ambience Mall in VASANT KUNJ.

Placement of location is very attractive as there is a lot of foot fall.
3. AVAILABILITY OF TRANSPORT :

It is very convenient to travel around as there is lot of means of transport

available like auto rickshaw, bus, tempos.

4. PRESENCE OF THE OTHER STORES :

It is very good to see that all popular brands are there in one single Mall.
Like H&M, Gucci, Zara, Adidas etc.

TASK 8:
DRAW THE ORGANIZATIONAL STRUCTURE OF THE
RETAIL STORE THAT YOU VISITED

ORGANIZATION STRUCTURE OF NIKE

 TASK 9:
WRITE THE PROMOTIONAL MIX OF RETAIL STORE

 PROMOTIONAL TECHNIQUES – In this technique company use famous

athletes to do their commercials to interact customers(fans).

 CASH BACK – Nike gives cash back to their customers in online shopping.

 DISCOUNTS – It gives such a good amount of discount to their customer.

 TASK 10:
SHARE THE DETAILS OF HUMAN RESOURCE OF THE RETAIL
STORE WITH THEIR JOB PROFILES

HUMAN RESOURCE OF NIKE

 The HR department of Nike is very dynamic.

 Employees are the biggest strength of the HR department.

 HR department of Nike takes utmost care to select, train, motivate and retain
all their employees.
 They have continuous development program for all the employees.

 There are two shifts for the employees:

1st shift
FROM 10AM TO 7:30PM

2nd shift
SHOULD HAVE TO REPORT FROM 12 NOON TO 10 PM

 In each counter of Nike we can see the employees doing their work with
utmost dedication.

 Employees of Nike was has a better manpower to deal with the customers as
I interacted personally.

 Employees are well educated, they know each and every thing about their
store and very friendly to talk.

 They does not hesitate to share their skills and knowledge with the customers.

BIBLIOGRAPHY

 The content of this project is being collected personally by going to the store
of Nike.

 I took the help from my family, as my brother clicked all the pictures of mine.

 I took the help from various sites of GOOGLE to gather information of my

project.
 CONCLUSION

 Overall project is a new experience.

 As I have never known this much about a particular store or a brand.

 Gathering information was a big challenge but loved doing this.

 I love to try new things and explore my skills.

 This project taught me a lot how wide Nike is.

 Nike has a specialty assortment of products.