Section B Group 8Section B Group 8

Oscar Bernaldez / Pablo Franzini / Masa Oscar Bernaldez / Pablo Franzini / Masa KijimaKijima

Alessandro Piloni / Nikolaos Platis / Iris Alessandro Piloni / Nikolaos Platis / Iris TangTang

Do you know PUMA?

Agenda

PUMA at a glancePUMA at a glance

HistoryHistory

Market AnalysisMarket Analysis

The Value ChainThe Value Chain

SWOTSWOT

PUMA in Our CountryPUMA in Our Country

The FutureThe Future

Glory, Collapse…and Rise

Founded in 1948

Rapid Growth in 1970s

Financial crisis in 1988

Phase I : 1993-1996

Restructuring Finance

Phase II : 1997-2001

Repositioning Brand

Consolidated Group Profit

0

20

40

60

80

100

120

140

160

180

Restructuring InvestmentMomentum

10M€

0

200

400

600

800

1000

1200

1400

1600

1999 2000 2001 2002 2003

Africa/MiddleEast

America

Asia/Pacific

Europe

Worldwide Brand Sales by Region

Million €

Worldwide sales by segment

0

200

400

600

800

1000

1200

1400

1600

1999 2000 2001 2002 2003

Accessory

Apparel

Footware

Million €

CompetitorsHigh qualityWinning image

Form follows functionBrand for the family

Grow through distribution

Fitness and exercise

Industry Analysis

Entry/Exit Barrier

Threat ofSubstitutes

Bargaining Powerof Suppliers

Bargaining Powerof Buyers

IndustryCompetition

Industry Analysis

Entry/Exit BarriersEntry/Exit Barriers

LOW(Entry) 　 : For Apparel Market

HIGH : For Footwear Market HIGH : Brand recognition and Customer Loyalty

LOW (Exit) : Outsourcing in Manufacture

Non-durable Products

Seasonable Consumption

IndustryCompetition

Threat of Substitutes

Bargaining Powerof Suppliers

Bargaining Powerof Buyers

SMALL: Daily consumption

Lifestyle dress

Other

consumption

Entry/Exit Barrier

Threat ofThreat ofSubstitutesSubstitutes

Industry Analysis

IndustryCompetition

Bargaining Powerof Suppliers

Bargaining Powerof Buyers

LOW: Low Cost Labors Over supply of raw material Manufacture sites

HIGH: Designer Fee

Bargaining PowerBargaining Powerof Suppliers of Suppliers

Industry Analysis

Entry/Exit Barrier

Threat of Substitutes

IndustryCompetition

Bargaining Powerof Buyers

HIGH: Low Switching Costs

Price Transparency Retailer

Bargaining PowerBargaining Powerof Buyers of Buyers

Industry Analysis

Bargaining Powerof Suppliers

IndustryCompetition

Entry/Exit Barrier

Threat of Substitutes

High: No Price Competition Brand Image

Product Differentiation

Global Competition + Local Taste and

Culture IndustryIndustry

CompetitionCompetition

Industry Analysis

Bargaining Powerof Suppliers

Entry/Exit Barrier

Threat of Substitutes

Bargaining Powerof Buyers

The Value Chain

R&D : Technology and Fashion Production: 100% Outsourced Brand : Positioned between Sport and Casual D&R : Carefully Selected Partners + Own Shops

Research&

Development (2.6%)

SourcingProductionLogistics(56.4%)

Distribution&

Retail

Brand Management

　　　　　 　　　　　　　　　 　　　　　　　　　　　　　　 (13.7%)

Marketing Strategy

ProductMicro SegmentationCameroon National teamNiche sports: Cricket, F1Nuala

PromotionChannels: Personalities Sponsorships Advertising

Price

Unpopular & Cheap in 80’s

Different from OthersPremium Price

PUMA Faces

Value, Cost, & Speed

ValueValue Unique, Stylish and trendy Unique, Stylish and trendy

productsproducts CostCost

Production outsourcedProduction outsourced

SpeedSpeed Catch new trendCatch new trend Exploit new nichesExploit new niches

What are Strengths of PUMA?

What are Strengths of PUMA?

Strong Brand AwarenessAppealing and Innovative ProductsInternational Management TeamS W

O T

What are Weaknesses of PUMA?

Strong Brand AwarenessAppealing and Innovative ProductsInternational Management Team

High dependency on

trends

Big part of revenues

come

from Western Europe

Less Financial muscles

than

Nike and Adidas

S WO T

What are Opportunities of PUMA?

ROOM to exploit Lifestyle Market MARKET for Accessories with High MarginsNew Markets

Strong Brand AwarenessAppealing and Innovative ProductsInternational Management Team

High dependency on

trends

Big part of revenues

come

from Western Europe

Less Financial muscles

than

Nike and Adidas

S WO T

What are Threats of PUMA?

High dependency on

trends

Big part of revenues

come

from Western Europe

Less Financial muscles

than

Nike and Adidas

ROOM to exploit Lifestyle Market MARKET for Accessories with High MarginsNew Markets

Sudden shift in tastes

Puma’s business

depends

on retailers

Strong Brand AwarenessAppealing and Innovative ProductsInternational Management TeamS W

O T

PUMA in Our Countries

Europe: Large Market Penetration

Argentina: License and Imports

Japan: Removed License and New

Strategy

China: Small Market Penetration

Keep on Running

Stay on The Same Track

Exploit better the Accessories and

Apparel

Create New Brands for New Niches

Expand to Fashion Sensitive

Countries

??