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The company is finding it difficult to maintain its market share in a highly price-sensitive Indian market, despite having strong brand recall. 97% of the company's revenues are from the domestic market while the remainder is from exports. Nike India is the biggest player in the Indian shoe market.

Nike India's major problems include its high cost of production and low emphasis on marketing. The company may be able to address the first problem through outsourcing products. Bata's brand image has been restricted to that of a company that emphasizes on utilitarian products more than trendy ones. Customers feel the company is lacking in innovation. Hence, their preference has shifted to other local brands.

Nike India has a large marketing network with over 1,600 showrooms, 35 wholesale depots and eight retail distribution centres across the country.

Besides, there is a network of 500 exclusive wholesalers servicing 30,000 dealers all over the country. However, in spite of this and the license to sell other brands like Nike, Hush Puppies and Lotto, Nike has not been able to improve sales consistently. The recent rise in sales during the third quarter ended September 2008 can be attributed to the festive season. Recently, it also entered into a retailing tie-up for Lee Cooper shoes.

Nike India has also been trying to focus on aggressive marketing of its product. The company has been going through a period of transition for the past one year. With the expansion of the retail industry in New Delhi and Mumbai, the company has recently decided to shift its marketing operations to Delhi in order to provide value shopping for its customers. However, the manufacturing activity and the registered office will continue at Kolkata.

Nike India has plans to invest in sophisticated machinery to retain its niche place in manufacturing. The company has put a fresh focus to its retail business. The company has decided to cleanse its wholesale operation by building relationships with credit-worthy buyers.

It is to the company's credit that it has lately overhauled its marketing set-up into a four-tier retail structure that will be stocked with products matching the area's customer profile. A Nike outlet in an up market place will offer a distinctly different range of footwear from another in the suburbs.

At the top of the four-tier structure will be international stores stocking brands like Nike and Reebok. Next will be city stores, located in up market areas and catering to middle and high-income groups. The company has identified the brands Power, North Star, Bubble gummers, Marie Claire and Hush Puppies for the top end of the market. Third in line will be family stores at commercial locations displaying basic and mid-range footwear. At the bottom will be bazaar stores that will basically aim at driving volume sales at lower price points.

The management of Nike India is taking major steps in terms of improving market penetration, focus on stores configuration, distribution logistics, better industrial relations 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。