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The document explores the impact of online consumer reviews on purchasing decisions, particularly in the footwear market, highlighting how positive reviews enhance brand reputation and influence consumer trust. It details the histories and marketing strategies of Nike and Puma, emphasizing Puma's success in India through trend identification and celebrity branding. The global footwear market is projected to grow significantly, with changing consumer preferences towards health and fitness driving demand for sportswear.

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0% found this document useful (0 votes)
41 views16 pages

BST Project Draft

The document explores the impact of online consumer reviews on purchasing decisions, particularly in the footwear market, highlighting how positive reviews enhance brand reputation and influence consumer trust. It details the histories and marketing strategies of Nike and Puma, emphasizing Puma's success in India through trend identification and celebrity branding. The global footwear market is projected to grow significantly, with changing consumer preferences towards health and fitness driving demand for sportswear.

Uploaded by

lalalal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Introduction:

The influence of Consumer Reviews on Online Purchasing


Decision.
Research questions: How do online consumer reviews
influence purchasing decisions and brand perceptions in the
sector?

The importance of online shopping is increase nowdays


because the young generation wants to take or buys branded
shoes like me. When, I want to buy something, I usually order
from amazon or any other apps. So in online shopping they
build trust and credibility like in authenticity matters we
usually get to read genuine reviews when we want to buy
something like branded shoes like Nike or Puma when we
want to buy online many people read reviews or the
information that how the product is helping potential buyers
trust the product or service.
We get social proof of such brands like Nike and Puma
positive reviews act as endorsement, encouraging others to
make similar purchases. Influencing purchasing decisions
making aid consumers rely on reviews to find out quality,
functionality and value for money before committing these
help people to compare the products and brands, making it
easier to select the best option. Now the brand reputation
the positive review give the boost a brand image and hen
they attract more people towards them.
Now the brand reputation when we give a good feedback
that attract the people the towards the product then the
brands like Nike and Puma comes to our search engine
ranking websites and listings with frequent, high-quality
reviews rank higher in search results that increasing visibility.
But sometimes online reviews are harmful for the local
market people because if the people influence with online
market then the local market will not in profit. Now it comes
to shaping market trends, trends identifications in the
reviews the consumers indicate emerging trends then
product development from reviews the company or
companies guide their creating work or refining product.

Nike introduction:
Nike’s journey began in the 1950s when track coach Bill
Bowerman, seeking an edge for his runners, experimented
with various shoe designs but faced challenges in finding
manufacturers willing to try his ideas. In 1955, Phil Knight, a
runner under Bowerman at the University of Oregon,
proposed importing quality yet affordable shoes from Japan.
This idea led to the establishment of Blue Ribbon Sports in
1964, with Knight and Bowerman as partners. The company
initially distributed Japanese Tiger shoes in the US. As
Bowerman improved shoe designs, Knight focused on sales.
In 1971, Jeff Johnson joined as the first full-time employee,
handling marketing and store operations. The company’s
partnership with the Japanese supplier faltered, leading
Knight and Bowerman to venture into designing and
manufacturing their shoes. The iconic swoosh logo was
introduced, and in 1972, the Nike line debuted during the US
Track and Field Trials, impressing athletes with its innovative
designs, including waffle-like soles and lightweight
construction.
Nike sought athletes like Steve Prefontaine to endorse its
products, and by 1980, the company went public. Despite
leadership changes, Nike faced industry challenges in the
mid-1980s until Michael Jordan’s endorsement revitalized the
brand. The iconic “Just Do It” slogan was launched in 1988,
followed by successful campaigns featuring athletes like Bo
Jackson.
In the 1990s, Nike expanded into new sports, including soccer
and golf, signing deals with teams like Brazil’s national soccer
team. Criticized for signing Tiger Woods, Nike’s investment
paid off when Woods won the 1997 Masters. In 2000, Nike
introduced the Shox shoe, representing years of dedication
and innovation.
Today, Nike remains a dominant force in the industry,
continuously expanding its global presence and product
offerings. With a rich history of innovation and iconic
marketing campaigns, Nike continues to shape the future of
sportswear.
World’s shoes Market
In 2020, the global footwear market was valued at 365.5
billion USD and was predicted to reach approximately 530.3
billion USD by 2027. Exhibit 1 illustrates the trajectory of the
footwear market worldwide from 2020 to 2027. Reebok,
Adidas, Puma, and Under Armour are prominent players in
this industry. Embracing a lifestyle centered around health
and fitness has become a widespread trend across various
consumer demographics globally. Many shoe manufacturers
are collaborating with fashion designers to introduce new
clothing lines, thereby expanding their product offerings in
pursuit of growth and profitability. Consumption patterns are
influenced by fitness and fashion trends, as well as specific
demographic demands, such as those from teenagers and
baby boomers.

The footwear is popular although the India and China and


they are witnessing for there fitness trends. Nike has to
continues to generate its highest sales from North America
and European nations. This can be attributed to the fact that
India and China are still developing economies with
predominantly unorganized shoe markets catering to local
needs. While these countries are the primary focus markets
for many global brands, they lack a substantial market for
premium or specialized athletic footwear, contributing to this
phenomenon.
Puma introduction:
Puma is the number one sportswear brand in India. Ahead of
competitors that include Nike, Adidas and Reebok. The case
study dives into how the German brand achieved this level of
success through their ability to identify trends and their
capacity to reach and connect with their audience effectively.
Puma entered the Indian market in 2006. They were the last
among competitors like Nike and Adidas to enter the market.
But in 2015, Puma became the No.1 sportswear brand in
India, surpassing all the other global brands.
India was the only market globally where the brand was
ahead of Nike and Adidas. Their success over the years came
from their capacity to identify trends in the market.
Identifying trends
Trend 1 – The lifestyle changes happening in the country
With increased health concerns, Indians started taking more
interest in sports. It created a growing demand for
sportswear as fitness became more integrated into their lives.
Trend 2 – More women getting into sports
An increasing percentage of women started attending their
running events in India. They also took to other activities such
as callisthenics, pilates & Zumba. Growth in the women’s
category has been higher than in the men’s category.

The Puma ‘Propah Lady’ campaign


Trend 3 – The rise of ‘athleisure’
Athleisure is defined as casual clothing designed to be worn
both for exercising and for general use. People started
wearing sportswear at the office, in malls, in planes etc. It
became an integral part of their lifestyle.
Trend 4 – The popularity of streetwear reaching India
The sneaker culture developed as people started buying,
collecting and exchanging sneakers while posting about it on
social media. This led to a boost in their sales of sneakers.
The Puma ‘Suede Gully’ campaign showcasing streetwear
Puma capitalised on this trend with their RS line. Despite the
high price-point of these sneakers, they were a hit among
consumers in India who are usually known to be value-
conscious. They also initiated associations and partnerships
with sneakerheads.

Puma’s RS line
Reaching and connecting with customers
Puma combines an ability to spot trends with a capacity to
connect with their target audience. They are able to find the
right channels to reach them and the right messaging that
will resonate with them.
Puma’s main target audiences are Millennials & Gen Z. Puma
adopted a digital-first approach which is a more cost-effective
way of reaching them. They are moving away their marketing
spend from tradition advertising to spending ~90% of their
budget on digital.
Puma adopts a multi-channel approach to reach their
customers. They sell their products on their own website, in
their stores, on e-commerce platforms, in multi-brand stores
etc.
The focus remains on driving more sales through their own
online store (puma.com). It is a preferred choice by brands as
they have more control over the experience of visitors, can
collect more data and avoid commissions fees.
To boost sales on their own e-commerce store, Puma sells
exclusive products not found elsewhere.

Exclusive products on Puma’s website


Puma also leverages on the popularity of other e-commerce
platforms. They sell on sites like Flipkart and Myntra which
are both widely used in India. They are present wherever
Indians shop online without becoming too reliant on any
external platform.

Puma’s online store on Myntra’s e-commerce platform


Puma’s messaging resonates with Indians. That is because of
localisation. While they may be an international brand, their
campaigns are localised which makes them more relatable.
Here’s an example with their campaign ‘Suede Gully’.
Puma’s ‘Suede Gully’ campaign
Localisation extends to their products as well. They created
flipflops and open sandals exclusively for the Indian market.
They sell over 5 million pairs every year. Here’s the search for
‘sandals’ in their US store (left) and India store (right)

Puma US Store Puma India Store


But Puma’s biggest strength is celebrity branding. It’s a tactic
that’s particularly effective in Asia and especially in India. It’s
a great way to inspire consumers and gain credibility.
In India, the celebrities are actors/actresses from Bollywood
movies and cricket players from the national team. Their
reach in the country is unparalleled. People across all strata
of society look up to them. They are the celebrities who
Puma partners with.
Let’s take the example of Bollywood. Puma has partnered
with big stars such as Kareena Kapoor and Jacquline
Fernandez. And more recently, the new joiner in the industry
Sara Ali Khan. On Instagram alone, that’s a reach of over 80M

Kareena Kapoor, Jacqueline Fernandez, Sara Ali Khan for


Puma’s partnership with Bollywood stars
Puma has also partnered with many cricket players. The
brand has had players from Team India such as Yuvraj Singh
among their ambassadors. But their more recent partnership
with Virat Kohli has been one of their most successful
globally.
Virat Kohli is the captain of the Indian cricket team. He is a
superstar in the country. It doesn’t get bigger than that.
The partnership with Virat Kohli was not ‘simple’ celebrity
branding. Virat Kohli launched his own brand called One8 in
collaboration with Puma. It reported sales of $15 million in its
first year. It is growing rapidly and accounted for a 10% rise in
Puma India sales in 2019.
One8 – Puma’s collaboration with Virat Kohli
Puma is a textbook example of how a brand can leverage on
celebrity branding in India. They’re able to convince the
biggest stars to join them, they’re able to spot the up-and-
coming ones, and they have a finger on the pulse to identify
those shaping the culture.
That’s how Puma was able to become the leading sportswear
brand in India. Through their ability to identify trends and
their capacity to reach and connect with their audience
effectively.
The difference between Puma shoes brand reviews
Good reviews :
Bad review :
The difference between Nike branded shoes between good
review and bad review as the nike shoes comes in local
market so it will be local in the online market also so people
when when they buy branded they know which is branded
and which is local.

Bad reviews of Nike


Good reviews of Nike .
Conclusions :
I am a buyer, but many options confuse at time, and also give
clearity about my opinion.
It make it easier to find out authentic product as a consumer.
Bibliography :
https://www.meritshot.com/nike-case-study/
https://marketerasia.com/puma-india/

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