PRESENTATION ON PUMA

BY:-

Shruti Upadhyay

M.F. Tech III sem

Gandhinagar

Introduction

• Industry – Clothing Industry• Founded - 1924 (registered in -1948)• Founders- Rudolf Dassler• Headquarter- Herzogenaurach , Germany• Kay people – Jochen Zeitz (CEO and chairman of the management

board), Melody Harris-Jensbach (deputy CEO), Francois-Henri Pinault (Chairman of the supervisory board)

• Products – Foot wear, Sportswear , Sports goods, Fashion accessories

• Revenue - €2.461 billion (2009)• Operating income- €192.4 million (2009) • Profit- €128.2 million (2009) • Employee- Approx- 10,000 (end 2009)• Main geographic areas- Europe, United States, Asia• Official website- http://www.puma.com

Company Profile…

• It was founded in 1924 and has head quarters

in Germany . • In 1948 , Adolf Dassler split from his

brother’s company , Adidas to form his

own company called Puma.• Puma is a large German multi national

company which designs and develops

athletic shoes, lifestyle footwear and other

sports wear and accessories. • The company also offers lines shoes and

sports clothing, designed by

Lamine Kouyate, Amy Garbers, and others.

Contd…

• It distributes its product in more than 120 countries, employs more than 9000 people and generates revenue of $2.5 millions.

• They sponsor many football teams all over the world and have a big involvement in terms of sponsorships in the football matches and players.

• Puma is partnered with several major national soccer leagues in countries such as Germany and Egypt.

Puma in India

• June 2006, the first Puma Store opened in Chennai.• Puma India closed 2007 with 14 exclusive stores, presence in hundred outlets and a

Regional Office in Gurgaon (NCR).• Within a short span of 2 years PUMA India has established itself as the

most desirable sports lifestyle brand of the country. • Currently, Rajiv Mehta is the Managing Director of Puma India, Bangalore,

India.

Company History…

• 1924: Rudolf Dassler and his brother Adolf start making sport shoes.• 1948:Adolf Dassler split from his brother’s company , Adidas to form his own

company called Puma.• 1951: Rudi registered the first version of the puma logo.• 1958:Introduction of Puma's signature form strip at the FIFA World Cup in Sweden.

• 1974: Rudolf Dassler dies. His sons Armin and Gerd take over the company's

management.• 1986:Transformation into a stock corporation.• 1993:At age 30 Jochen Zeitz was named chairman & CEO of puma AG . he shifted the production from Germany to Asia.• 1994: The first profit since the company’s IPO in 1986 is registered .• 1998:Puma merges sports and fashion. The company starts a cooperation with

designer Jil Sander . • 1999:Puma becomes an official on-field supplier of the U.S. National Football

League (NFL).

Contd…

• 2000: Production of fireproof footwear in partnership with Porsche and Sparco. • 2003: Majority shareholder Monarchy/Regency sells its shareholdings to a broad

base of institutional investors. • 2004: Collaborative partnership with world-renowned designer Philippe Starck .• 2005: Total of 16.91% shareholding. • 2006: Shoe collection in cooperation with Alexander McQueen. • 2007:Brazilian football club will be the first to use the laser sewn technology.• 2008: Melody Harris-Jensbach is appointed Deputy CEO; Designer and artist

Hussein Chalayan becomes Creative Director. • 2010: Signs two year deals to make the kits of Newcastle United, Motherwell,

Hibernian & Burnley from the 2010–11 season.

Vision , Mission & Values

• The Vision :

We are committed to working in ways that contribute to the world by supporting creativity, sustainability and peace and by staying true to the values of being Fair, Honest, Positive and Creative in decisions made and actions taken.

• The mission:  

Puma has a long term mission of becoming the most desirable Sports life style company.

• Values

Passion

Openness

Self Belief

Entrepreneurship

Corporate Strategy…

This long-term strategic objective is to be achieved through: 

• Expansion of product categories

• Regional expansion

• Expansion with non-PUMA brands

Brand communication

• Clean & Modern typography:

letting the products “speak” for themselves.• Refined color palette:

• Layout:

• Logo identity & placement

-Master logo

-Typography logo

-”Leaping cat logo”

-Super cat logo

Puma’s Brand

Puma has master and sub brands.

• Master Brand -– Sport Lifestyle– Sport

• Sub Brands-

-Nuala

-96 Hours

-Mihara

-Starck

Retail

• PUMA is continuously focusing on retail expansion and retail-specific knowledge through the opening of new stores.

• The new concept store demonstrates its efficacy for driving the brand and generating profits.

• PUMA will continue to create more excitement in its stores, expand its consumer base, and firmly maintain its position that retail should function simultaneously as a tool to generate profitable growth.

The PUMA Online Store

• Site that markets the Puma brand, but is focused on selling its products directly to the consumer

• Contains an extensive online catalog, current news on Puma, employment opportunities, new items and an online shop

• Positive aspects - Interactive site; interactive online shopping for consumers from extensive online catalog; very user friendly site with easy navigation.

Products

Sports Life style

Men Women Kids

Sunglasses

Swimwear

Body wear Socks

FragranceAccessories

Price• Soccors

The price points under this range start from around Rs. 2200 & maximum reaches out up to around Rs. 9500. Here the average price point is around Rs.5850.

• Running shoes:The price points under this range start from around Rs. 2200 & maximum reaches out up to around Rs. 6330. Here the average price point is around Rs.4265.

Revenue by produts

Consolidate net sell by apparel & footwear - 2008

Teamsports33%

Sports life-style15%

Sportsper-formance

5%

Others

13%

Training34%

Sales

28%

6%

8%

17%

7%

11%

23%

Sales

Soccer TennisTraining Sports life stylebasket ball RunningOthers

SWOT Analysis

• Strength-• Financial growth is phenomenal.• More diversified than its competition.• Wide array of shoe- wear.• Brand stands for quality, latest technology and prestige.• Increase in demand is the expected market trend• Global brand• Puma’s top management is highly marketing oriented, and most of the key

personnel come from marketing background. This is strength in this business because industry is market driven instead of product driven.

SWOT Analysis Contd…

Weakness-

• They have diversified range of spot products but income of the business heavily depends upon its share of footwear market.

• Retail sector is very price sensitive• Profit margins tend to squeezed as retailer try to pass some of the low price

competition pressure onto Puma.• Young consumers only

SWOT Analysis Contd…

• Opportunity-• Open more stores !!!• Product development.• Strong global recognition.• Expand in markets which has more disposable income.• Participate in global marketing events like world cup. Olympics, etc.• Being more focused on youth, Puma is certainly a fashion brand.

SWOT Analysis Contd…

• Threats-• Harsh competition• Weaking markets may be serious threat.• Puma exposed to international trade. Fluctuation in currency affects costs and

profits margin of the company.• Retail sector is becoming very competitive and consumers are highly price

sensitive. So the consumer can compare the prices for exactly same item for the best deal and this is potential external threat to Puma

Industry Analysis

• The sport industry is now estimated to be worth $500 billion worldwide, but recent growth belong to a new rapidly developing markets.

• These markets are located in Brazil, Russia, India, China, Central Asia, Eastern Europe, the Far East and Africa.

• Regional hubs of Puma are:

Germany ,

Austria,

Hong kong,

USA,

Australia • A number of new centre’s around the world are playing an ever more visible role in

global sport.• In the market of sport products there are three main players: Nike, Adidas and

PUMA.

Industry Analysis contd…

Puma has high brand awareness in most European countries –• Netherlands leading – 93%• Followed by Switzerland- 89%• Germany with-83%• Then Spain with-82%• Poland & U.K. with – 76%• Italy with-56%

The CompititorsNike• Number one sports brand in the world• US based: administrative activities & design and product innovation• Sub brands like “Tiger Woods” or “Michel JordanADDIDAS• Focus on core sports like soccer, tennis, athletics and skiing• 6 times the financial resources• Design and marketing department are located in France and GermanyPRADA• Well known luxury brand• 4 years ago Prada dared to step into the sport segment• Focus on fashion and trends but their price strategy is still too highDiesel• Major fashion brand including: sunglasses, footwear, watches, fragrances and

writing tools• Experienced an unexpected growth rate• Brand is still situated in Italy (jeans production)

Promotion of Brand

• Who and What-

• Sports:• Who: fans of niche sports who are fashion conscious• What: buy the puma products for the sports they like and express their love for the

sports through wearing them

• Lifestyle:• Who: young, hip, trendy, urban • What: buy, wear and talk about their PUMA gear as a personal statement

Puma’s Promotion Plan

Business Objectives

• Sales growth of 10% while maintaining strong margins• Continue to invest in product innovation across categories and markets • Expand retail operations Provide unique brand experience• Speed to market• Gain product development and marketing expertise by being closer to consumer

Puma’s Promotion Plan contd..

Marketing Objectives

• Raise profile of PUMA brand Continue designer collaboration approach• Communicate through all touch points• Drive traffic to PUMA stores• Increase loyalty and repeat purchase

Puma’s Promotion Plan contd..

Buzz Marketing

The Adventures of PUMA Consumer-generated content:

Travel/lifestyle focus

Contest:

Winning content will be aired on TV and consumer will win a trip

Reference

• www.puma.com• http://www.wikipedia.org• http://www.gotomanager.com/news/

Thank You For Your kind Attention