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PUMA

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PRESENTED TO :- VINOD BY: GROUP 03 (PUJA SINGH, Aabha Shrestha

KUMAR Somxay Dalakeo)


CONTENTS
1. Ad – USAIN BOLT
2.Introduction
3.Product line
4.Mission & vision
5. Key factors that contributed to Puma's success – 5C analysis, PESTEL
analysis , retail strategy, product portfolio and promotional strategy.
6.How Puma should respond to competition from foreign brands?
7. What strategies Puma should use to overcome competition from
domestic brands?
8.Market share
9.How does Puma maintain its leadership in Indian market? (Discussing
4p analysis)
10.Brand endorsement and ambassadors , Additional information's
Ad – Lisa haydon
Before knowing the brand lets have a look to the ad that changed the
game for puma – USAIN BOLT (2015), more than 77 lacs view
presently.
INTRODUCTION

•PUMA is one of the world’s leading sport lifestyle companies that designs and develops
footwear, apparel and accessories.
• 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 decisions made and actions taken.
• PUMA starts in Sport and ends in Fashion. Its Sport Performance and Lifestyle labels include
categories such as Football, Running, Motorsports, Golf and Sailing.
• The PUMA Group owns the brands PUMA, Tretorn and Hussein Chalayan.
• The company distributes its products in more than 120 countries, employs more than 9,000
people worldwide and has headquarters in Germany, Boston, London and Hong Kong.
•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.
• Puma AG has approximately 9204 employees and distributes its products in more
than 80 countries.
• CEO and Chairman Jochen Zeitz since 1993.
• Puma is the main producer of enthusiast driving shoes and race suits.
• It is the official sponsor for FIFA World Cup.
• Puma has partnership with Ferrari and BMW.
Division of Operations
• Footwear range: cross training, motor sports, running,
soccer, tennis and other activities.
• Apparel line : t-shirts, track jackets, pants, and hooded
sweatshirts.
• Accessories: backpacks, belts, headwear, socks and
utility bags.

Product Line
.Football
.Running
. Cricketing Equipments
. Alexander MQUEEN Shoes and Accessories
. Body wear
. Fragrances
. Timepieces
. Puma Phone
. Motor-sport
. Running
. Mihira
PRODUCTS
Improved Version: Mission
• At PUMA, we believe that our position as the creative leader in Sport lifestyle gives
us the opportunity and the responsibility to contribute to a better world for the
generations to come.

Improved Version: Vision


• To generate a better world that would be safer, more peaceful, and more creative
than the world we know today.
Key factors that contributed to Puma's success
5C ANALYSIS
CUSTOMER

Strengths
• Currently on No. 1 spot in India
• CAGR of 14% since 2011
• Highest revenue among competitors Nike, Culture
Adidas, Reebok
• Strong workforce of 10,000 employees • Focus on global aspirations
• Presence in more than 120 countries • Adopted various strategies in terms
• The consequent launch of flip flops and of adding product portfolio,
sandals exclusively for Indian market promoting the brand, and focusing
validated puma’s effort and commitment. on retail
• Consumers central to Puma’s
Goals & Objectives strategy
• To hold the number one position
in the sportswear industry
• To be a dominant player in terms
of market share in the sports
wear industry
• To make India one of it’s top 5
global market
Customers
Market Size/Segments
• Consumer spending to reach a level of $3.6 trillion.
Purchase Habits/Buying Process
• Online presence helping the company to target 16
to 25 years age people
• Wide focus in terms of price range: Puma’s • Indian consumer market dominated by
products range from an affordable $25 to $230 the younger generation
• Sportwear industry in India valued at $3 billion in • Sophisticated & Brand conscious market
2013 • Young upper-middle class consumers
• Predicted to reach a market value of $4.9 billion in look beyond the utility aspect of a
2018 product to seek brand value
• Sportswear saw CAGR of 10% from 2013 to 2018 • Increase in making online purchases

Customer Satisfaction
• Puma focused on continuous monitoring and
improvement of the customer’s store experience
• Consumers associated fashion items of Puma with
unchallenged passion, determination, and sentiment for
sport
Competitors

Current

• Adidas
• Nike Competitor Products
• Reebok
• Liberty
• Lancer • Running Shoes
• Casual Shoes
• Relaxo
• Track Suits
• Bata • Bags
• Sport Deodorants
• Clothing Apparels
• Sport shoes: Football, Cricket,
Basketball, golf, etc
COLLABORATORS

• In early 1990’s, puma re-entered the Indian market with a licensing agreement with
Carona and sharing its license with distribution partnership with planet sports. Planet
sports was in charge of sourcing, Distribution, And retail of puma products in India.
• Alexander McQueen
• Yasuhiro Mihara
•Sergio Rossi
Above mentioned are major, there are many collaborations, puma has stepped
forward to maintain social welfare and target customers.
• Puma Sports India Pvt. Ltd.
– Wholesaler/Distributor / Supplier of Shoes, Sportswear and
Apparel
• Specialties
– PUMA Apparel ( Fashion & lifestyle + performance)
– PUMA Footwear ( Fashion & lifestyle + performance)
– PUMA Accessories ( Fashion & lifestyle)
– Team sport , clubs, companies & tenders businesses.
. Campaign in partnership with the Indian super league football franchise.
SOCIAL Context ECONOMICAL
With the licensing agreement with carona in
Outsourcing 1990’s, puma re-entered Indian market with
Employment partnership with planet sports. With change in
Employment protection. PUMA takes on the Indian consumer lifestyle, disposable income
responsibility for everybody involved in the production levels, people are adopting international brands
process, whether a PUMA employee or not. stabilizing the economy.
However, this responsibility cannot replace nor POLITICAL
substitute the responsibility of our vendors within PESTEL
They organized
their own manufacturing facilities. A
puma social club
Our “Code of Conduct” expresses the expectations we N
have of our vendors. It is integrated into our and puma loves
A
manufacturing agreement, which delimits the business vinyl to connect
L
relationship we share with our partners. PUMA takes with consumers
Y
this shared responsibility seriously. at a personal
S
T level.
The timeline shows the E I
research and C S
development (R&D) H LEGAL
expenditure of Puma N ENVIRONMENTAL
worldwide from 2013 O Government industrial policies
L
to 2017. In 2015, Puma O
main materials, namely cotton, polyester, leather
spent approximately G as well as paper and cardboard between 50 and
56.7 million euros on I 90% of the production volume, targeting the
research and C phase-out of hazardous solvents in the
development. A production of polyurethane
L
ENVIRONMENTAL FACTOR: Source –
puma website
TECHNOLOGICAL FACTOR

Investment made on R & D for better quality of the product and


customer satisfaction
Gaining Commercial advantage
from R&D and Innovations

• Clever Little Bags: Takes 65% less paper and reduces water, diesel and energy
consumption

• Apparel Packaging: One more fold and reduced packaging size. By the
use of 100% biodegradable material tremendous savings in amount of plastic
used(720 tonnes)

• Hangtags: we simply reduced the size of them and squeezed all the product
information – and PUMA humor – into fewer pages which results into
tremendous paper savings(45% of previous use)
Retail Strategy
• Strong focus on vendor management
• Built long term sustainability
• Realized the importance of catchment area early on; did not open multiple
stores in the same location
• Operates 340 stores across 115 cities in India
• Leveraged market opportunities by strategically tying up with various vendors
Product Portfolio

• Consistently launched new products from the global market into


the Indian market
• Focused on developing the right products
• Focused on style as a central strategy
• Assessed a demand for flip-flops and sandals in the Indian market;
Sold over 5 million pairs in FY2014/15
Promotional Strategy
• Built image as a fashion inspirational brand with dynamic designs and stylish
products
• Launched a ‘Forever Faster’ campaign in partnership with the Indian Super
League football franchise
• Signed the Rs 100-crore deal with Indian cricket team captain Virat Kohli,
Within a year of the deal, the sportswear brand has seen its sales grow.
• Spends 70% of its ad budget on digital marketing
• Increased consumer engagement by opening a ‘Puma Social Club’
• Put together a compilation of music and a concert series under Puma Loves
Vinyl
How Puma should respond to competition from foreign brands?

•Product diversification
•National Brand Ambassadors
•Advertising Strategies & Creative
launch
•Online Selling Facilities for Asian
Countries
•Gaining commercial Advantage from
R&D and Innovations
•CSR Strategies

Value Proposition
• Committed to working in ways that contribute to the world by
supporting Creativity, SAFE Sustainability and Peace, and by staying
true
to the principles of being Fair, Honest, Positive and Creative in
decisions made and actions taken.
• Customer Oriented – Focused on giving the customers wants.
•Go Green – Produce more eco-friendly products.
• Fully adopt the practice of marketing 3.0.
• Create more sponsorships with professional athletes especially with NBA basketball
star players.
•Increase additional company owned outlet
• Sponsoring extraordinary sport teams (e.g soccer teams, basketball teams etc. )
• Increase additional store outlet worldwide.
•Puma should invest in a warehouse management system. The strategy here is that they
would use existing warehouse centre to store goods when needed which means they can
quickly adapt to space needs as it relates to the flow of information and the
management of stocks. It could also give Puma a competitive advantage by being able to
respond to customers demands quicker leading to a better customer experience and
then a long term
objective of customer loyalty.
•Puma should also embark on a new expansion drive in wholesale and retail business
that are using a unique type of promotion as a medium to further solidify its relationship
with existing partnerships to strengthen the brand Puma, the aim here is to increase
visibility of the Puma brand.
• Puma should make more eco-friendly products like their new re-suede shoes because it
last longer than the other shoes and comfortable to wear.
•They should sponsor more sport events.
•They should also focus on basketball because it's one of the popular sports in the world
Strategies

•Retailing
• Eco-friendly
– Bring Me Back Bin a).continue looking up for current and future
– Clever Little Bag competition and be ahead of them
– PUMA Re-Suede
• Back On The Attack b).keep researching and analyzing the industry the
• Licensing industry from time to time to maintain current trend.
• Restructuring
• Transformation c)to be unique, to keep the uniqueness, brand delivers.
• Brand/Marketing Heat
• Product Desirability d).time to time keep developing brand image – keeping
• Distribution Focus in mind customer satisfaction, customer acquisition
which leads to building up more trust and loyalty.

e).Maintain value proposition for the customers.


Market shares in respective years
FY2012/13
FY2011/12 FY2013/14

Puma Nike Adidas Reebok


Puma Nike Adidas Reebok
Puma Nike Adidas Reebok

Sales Volumes of Top 4 Companies


9000
Brand FY2011/12 FY2012/13 FY2013/14 CAGR
8000
7000
Puma 5234 6690 7667 14
6000
5000
Nike 3687 3854 6242 19
4000
3000
Adidas 8405 6258 7199 -5
2000
1000
Reebok 6169 1254 3242 -19
0
Puma Nike Adidas Reebok

FY2011/12 FY2012/13 FY2013/14


How does Puma maintain its leadership in
Indian market?

It aims to be the most desirable Sport lifestyle Company.


• Aims at bolstering its position as one of the few true multi category
brands, and at making effective use of the many
opportunities offered by the Sport lifestyle market in all
categories and regions.
• It plans to evolve the organization.
• Qualitative growth and a long-term strengthening of brand
appeal will be given priority, instead of growth at any cost.
• PUMA plans to evolve the organization through the fostering of
unique company values, all compatible with the personality of the
brand. The can be best summarized in four words:
Passion
• It is not a business that manufactures and sells soap powder or ballpoint pens or
instant coffee. It is a business rooted in the passionate world of sporting endeavor.
The history of the brand resonates with the echoes of great athletes and legendary
performances, celebrated in stadiums across the globe. PUMA makes products
designed to facilitate the individual achievements that evoke the most passionate
responses.

Openness
• Today's marketplace is one of the fastest changing and dynamic on the planet. To
respond quickly and effectively in this environment demands a culture of openness,
where opinions can be shared without fear of blame and where old wisdom can be
questioned without the fear of antagonism.
• In this culture, respect and understanding flourish naturally, team workflows
seamlessly, barriers dissolve and a much overused word, empowerment, takes on real
meaning.
Self-Belief
• Global businesses face new challenges every day. It is the quality of the people in these
businesses and their belief in their own abilities that enable these challenges to be
overcome. PUMA's recognition of this is reflected in its determination that everyone in
the company understands and embraces the company values, as well as benefits from
the experience and integrity of their colleagues. Only with self-belief will individuals
have the confidence to make things happen, take the tough decisions and realize their
ambitions for themselves and, ultimately, the business.

Entrepreneurship
• Few businesses succeed without great ideas. PUMA has been built on them and
needs them to flow relentlessly hour by hour, day by day. This demands a willingness to
think outside the box, to zig where others zag and to seek inspiration beyond the more
obvious boundaries of our business universe. Such creativity has inspired the PUMA
brand strategy. It will also be needed to make it a reality.
4P ANALYSIS – MARKETING MIX

Product
a) Quality: provide better quality product to our customer, to differentiate in term
of quality standard.
Hence, puma has already established its brand reputation over the years. They
have made high standard, so that consumer should have a wish or perception on
their mind to opt for the brand.

b) Warranty: They provide one month warranty to every customer to gain


customer loyalty, that if any fault has been seen after purchase we will exchange
with a new pair of shoes…therefore a step to create brand image.

c) Innovation: continuous innovation in product range, so that the customers get


his/her suitable choice. Bringing distinctive and latest trendy design is the prime
focus, as we all know that these days, we all are fashion conscious.
Price
a). competitive price
b).Puma has succeeded in placing the brand as a brave, confident and
determined brand. Puma have direct competition from major established
brands like Nike, Adidas and Umbro
c).They provide seasonal discounts and loyalty benefits, in order to retain the
customers and increase switching costs for the customers. This gives an
insight in the pricing strategy in the marketing mix of Puma brand.
Place

a).Puma is structured into 5 regions, Europe, EEMEA (Eastern Europe, Middle


East and Africa), North America, Latin America and APAC (Asia and Pacific).

b).Puma has three types of distribution channels, wholesale, Puma owned and
operated retail stores and e-commerce stores. Puma has presence in more than
120 countries, employing more than 13000 people worldwide.

c).Puma maintains strong relationships with the main retail partners


Promotions
a).Puma, being a global brand, has an extensive marketing & advertising strategy. The
promotion strategy for Puma is almost same across countries.

b).Puma has national brand ambassadors from each country of its presence. It has
been endorsed by a number of legendary athletes, the list of which includes names like
Michael Schumacker, Pélé, Joe Namath and Usain Bolt. Puma has a long list of players
from more than 30 countries endorsing the brand.

c).Along with players, Puma sponsors various clubs, teams and associations across the
globe as a part of its promotional strategy.

d). To promote its women product line, Rihanna and Kylie Jenner walked on ramp
flaunting Puma’s designer apparel and shoes.
Brand Endorsement
• Tennis Gears: Somdev
Devramman
• Badminton: Saina
Nehwal
• Health Academy: Shilpa
Shetty & John Abraham
• Cricketing Equipments:
Gautam Ganbhir
BRAND AMBASSADORS
The ad represents Lisa Haydon representing women strength
fulfilling the puma’s tagline “FOREVER FASTER”
Advertising In India
.Focus on more revenue generation from Cricketing Equipments
.Sponsoring Ranji Trophy
. Print media
. Creative hoardings
. Kolkata, Goa, Kerala: More Focus on Football Gears revenue
.T .V Commercials
. Online Customization Options: For High End Customers

Corporate Social Responsibility


. Anti Child labor Campaign: Beating Competitors on Social and Ethical ground
. Sports Scholarships: Promoting sports culture
. Environmental pollution control: Initiative to create awareness for ecologically
sustainable business.
Conclusion
• With PUMA, you can create a good and better life in the future. How is this possible? It is
possible by buying stocks or make investment with PUMA. We can says this because by
strategically analyzing PUMA, we will able to see that the company growth is constantly
increasing every year and PUMA is a practitioner of modern marketing techniques.
•Number 3 in the world of footwear industry.
• PUMA does not directly aim to be the number 1 or leading supplier of sports footwear
worldwide. PUMA is contended in the current position they are in as long as they are
continuously satisfying the consumer by providing high quality and eco-friendly
products and treating their employees and key partners as part of their success.
•Entering the fashion sector puma become most flavored brand worldwide.
• Redefining company structure lead to new image they can now able to compete with
market leaders.
• Growing market shares.

Lastly
“Sustainability is a key value of PUMA, and guides our company to work faster towards a
more just and sustainable future.”
Bjørn Gulden, CEO
THANK YOU !!!
Innovation for puma – how the brand known in the market, product life cycle changes
quickly , product differentiation.
.pioneer in bringing designs so that it was not copied in the market
•Overall share , shoe market, sports market share.

More strategies
Study competitors , product wise , brand wise

Leader- 40%
Challenger- 30%
Followers- 20%
Nichers - 10%

•Ch 12
•Puma is good in which categories according to market share with the categories-
categories , sub categories (men’s, women’s , kids)
•Objectives- expanding total market share. , segment wise – then draw ansoff, were
need to focus on categories, what to do with the market and the product. Should they
open more stores?(ansoff analysis)
•How to increase the market share – categories, sub categories (men, women, etc)
•Also according to the quality
•Puma can come with fighter brands (brand with lower price) without puma brand on it
- premiumness

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