PRESENTATION ON PUMA

BY:-

In 1948, Adolf Dassler split from his brother’s company, Adidas, to form his own shoe company called Puma.

PUMA is a large German multinational company which designs and develops high- end athletic shoes, lifestyle footwear and other sportswear. It was founded in 1924 and has head- quarters in Germany. Jochen Zeitz is the CEO.

It distributes its product in more than 120 countries, employs more than 9000 people and generates revenue of $2.5 millions. The parent company is PPR.

COMPANY PROFILE

COMPANY HISTORY• 1920: Rudolf Dassler and his brother Adolf start making sports

shoes.• 1924: Foundation of Gebrüder Dassler Schuhfabrik,

Herzogenaurach, Germany.• 1959: The company is transformed into a limited partnership

named PUMA-Sportschuhfabriken Rudolf Dassler KG.• 1986: Transformation into a stock corporation.• 1994: The first profit since the company's IPO in 1986 is

regeristered.• 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).• 2001: Acquisition of the Scandinavian Tretorn Group.• 2007: Voluntary public take-over by Pinault-Printemps Redoute

(PPR); Prolongation of the contract with Jochen Zeitz by five years.

MISSION STATEMENT

PUMA has the long-term mission of becoming the most desirable Sportlifestyle company.

CORPORATE STRATEGY

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

• Expansion of product categories• Regional expansion• Expansion with non-PUMA brands

PUMA AS A BRAND

It is committed to working in ways that contribute to the world by supporting creativity, safe sustainability and peace. And by staying true to the values of being fair, honest, positive and creative in decision made and action taken.

Brand Personality

• Passion• Openness• Self- belief• Entrepreneurship

LOGO

• Design Elements of Puma Logo: Puma logo grips a notion of strong and chic icon with

the help of a leaping animal and bold font. A distinguished impression is immediately cast on the spectator, narrating the kind of image the company possesses.

• Shape of Puma Logo The Puma logo comprises of a courageous

representation. A leaping Puma, an animal known as cougar, panther or a mountain lion, is highlighted in the Puma logo. This Puma summarizes the power beast- like nature of the firm and its products. The Puma logo solely enhances the attributes of the firm’s reliability and its product’s aptitude in the international market.

Color of Puma Logo Few innovations have been taking place through the years

in Puma logo. However, the identity has been kept quite similar to the first design brought forward for the firm. Currently, the Puma logo is wrapped graciously in black hue which depicts immense supermacy and strength of the firm itself.

Font of the Puma Logo The complete Puma logo is a sign of authority and

confidence. Nevertheless, the typeface of the Puma Logo has maintained the same notion throughout its history in the corporate world. The bold font featured in Puma logo projects the firm’s stability and prominence.

4 P’s of Marketing Mix

PRODUCT

• It has wide range of footwear, sportswear, sports goods, fashion accessories.

• Black label include collaboration with reowned designers such as Alexander Mcqueen, Yasuhiro Mihara and Rossi.

• Puma group owns Puma, Tretorn, Hussein Chalayan.

PRICE

Puma’s pricing is designed to be competitive to the other fashion shoe retailers. The pricing is based on the basis of premium segment as target customers. Puma as a brand commands high premium.

PROMOTION

Location, targeted advertising in the newspaper and strategic alliances serves as the foundation of Puma advertising and promotion effort. The athletes and other famous sports personalities are always taken as brand ambassadors. They form the prime building blocks of their portion strategy.

PLACE

Puma shoes are distributed to Multi- Brand store front and the exclusive Puma stores across countries. While this necessitates a second trip for the customer to come and pick up the shoes, it allows Puma to offer a much wider selection than any of the competition.

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, fully integrate the retail space into the broader communication mix, and firmly maintain its position that retail should function simultaneously as a tool to generate profitable growth and brand equity.

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• Negative aspects The color scheme and the few sill images on the main page limit the extent of the users initial reaction

SWOT Analysis

Strengths• Puma is very competitive organization.• Financial growth is phenomenal• More diversified than its competition• Wide array of shoe- wear• Strategic acquisitions with reputable companies.• Brand stands for quality, latest technology and prestige.• Favorable brand recognition• 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.

Weaknesses

• Less of promotional activities done by the company and not much of advertisement.

• 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. However, most of its income is derived from selling into retailers.

• Profit margins tend to squeezed as retailer try to pass some of the low price competition pressure onto Puma.

Opportunities• 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• Owners believes that Puma is not a fashion brand. However, like

it or not consumers that wear Puma product do not always buy it to participate in sports. Being more focussed on youth, Puma is certainly a fashion brand. This creates its own opportunity, since the product could become unfashionable before it wears out i.e, consumers need to replace shoes.

Threats• Harsh competition and to keep- up with the competition’s

penetrating efforts will cost a lot of money and pressure on marketing and R&D.

• Short PLC play important role in the ROI in a particular product line.

• 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

Brand Strategy

• Bringing distinctive designs and a global outlook by blending influences of sport, lifestyle and fashion

• Maintaining vigilant watch over distribution channels

• Solid guidance and strict alertness for licensee

Research & DevelopmentPUMA has always being investing hugely in R&D and its company’s biggest

strength.• 1949: Rudolf Dassler has the idea of football shoes with removable studs.• 1952: Introduction of the SUPER ATOM.• 1953: Development of ATOM's successor: the BRASIL.• 1960: Introduction of the technologically advanced vulcanization

production technique.• 1966: Launch of the WEMBLEY, the predecessor model to the KING.• 1968: Launch of the legendary KING. PUMA is the first manufacturer to

offer sports shoes with Velcro fasteners.• 1976: Introduction of the revolutionary S.P.A.-Technology.• 1982: Armin Dassler invents the DUOFLEX sole.• 1989: Launch of the TRINOMIC sport shoe system.• 1990: Introduction of INSPECTOR, a growth control system for children's

shoes.• 1991: Launch of the DISC SYSTEM sports shoe.• 1996: Introduction of the CELL technology, the first foam-free midsole.• 1997: Launch of the CELLERATOR.• 2000: Production of fireproof footwear.• 2002: Launch of the SHUDOH.

THE COMPETITORSNike• Number one sports brand in the world• US based: administrative activities & design and product innovation• Sub brands like “Tiger Woods” or “Michel Jordan

ADDIDAS• Focus on core sports like soccer, tennis, athletics and skiing• 6 times the financial resources• Design and marketing department are located in France and Germany

PRADA• 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 high

Diesel• Major fashion brand including: sunglasses, footwear, watches,

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

Porter’s Five Forces: Model of Competition

• Many providers on market

• Build up healthy brand image- keep customers

• High competition in Asia

• Permanent threat in same sector

• Vulnerable sports market

• Own retail store network

• Fragmented market

• Big retail chains

• Own distribution

The Environment in India• The sports apparel segment has a huge potential in the Indian market as

About 25 per cent of international sale of Puma comes from India and China.

• People are also becoming more health-conscious and this has led to an increase in sports lifestyle, which, in turn, opens large potential for sports retail. The opportunities presented by a rapidly growing demand for brands, the growth of a young, affluent middle class, and promise of future economic reforms make India one of the most exciting and rewarding places for a dynamic sports lifestyle brand.

• In terms of overall increase, Puma's performance has been more than 100 per cent during last year.

• PUMA plan to have 25 stores by the end of this year.• Puma will now entice customers with a wide range of apparel and

accessories in a completely novel and unique environment through its exclusive branded store. Sporting its official colours of Red and White and spread over an area of ninety square meters, this store houses the entire international collection of Puma apparels, shoes and accessories. Apart from the sports performance products, the store caters to a new product range. The new product range will be available through 'Motorsport', 'Moto', 'Golf', 'Yoga/Lounge' and 'Beach Wear' collections. Being the official licensees for Ferrari, this PUMA store will also host a range of these branded shoes, apparels, and accessories.

RISK AND CONCERN• Indian Market is influenced a bit by the

branding and the celebrity so PUMA should come up with some good plans for the same.

• Restrictions by the Indian government to get spread freely into the market.

• Companies like Nike, Adidas, Reebok, Bata have a good holding and good market share making it difficult for the company to spread its arms easily.

Association with IPL

Global sportlifestyle brand PUMA has announced its association with the defending champions Rajasthan Royals and Deccan Chargers because they believe that IPL roll out an extensive 360- degree communication program and this will ensure PUMA’s presence in all marketing activities.

CSR

The PUMA S.A.F.E. Concept creates a symbiotic relationship between our environment, employees, business partners and other stakeholders. In essence, S.A.F.E. highlights PUMA's long-standing commitment to being a responsible corporate citizen. By rigorously enforcing the S.A.F.E. principles, PUMA is able to ensure that labor is not exploited and that production methods are continuously revised.

FUTURE PLAN

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