Case Study Presentation PUMA AG

Submitted by:
Karthik V
Kartikeya Batra
Mansi Thakar
Pooja Varma
Shreya Gupta
History and Case Facts:
Dassler brothers in 1984 started the Dassler Brother’s
Shoe Factory.
In 1948 The brothers split their business after the
World War 2, Adolf called his firm Adidas and Rudolf
called his new firm Ruda.
Rudolf’s Company changed its name to Puma in 1948
and became a public company in 1986.
What the Puma Logo meant?

The Leaping Puma symbolizes a combination of

speed, power and elegance often exhibited by
professional athletes
The Puma logo is a symbol of the fierce rivary
between the 2 brothers. No longer working with his
partner and brother, the brand would come to
symbolize the solitary and secretive nature of Rudolf’s
new venture as it moved forward.
Phases in Management:
Phase 1:
o Aimed at making Puma profitable
o To build a strong financial foundation.
o Changes centred around the companies accounting practises.
o Profit centres and distribution oriented controlling products
were identified.
o A working capital and accounts receivable were reduced.
o Organization was restructured to be more cost efficient.
o Production was outsourced to Asia and Turkey.
o In short the focus was on its core competencies: Marketing,
brand Management and product management.
Phase 2:
o Puma’s long-term development plan starts.
o Its aim is to re position the brand as a high value in
both sport and life style sales categories.
o Producer Arnon Milchan was convinced to invest in
Puma in 1997.
o This was a part of the brand building exercise that
Zeitz planned on doing.
o Puma products appeared in several hollywood
productions.
Current Brand Differentiation:
Reasons for being: Mixing the influence of sports, lifestyle
and fashion.
Value proposition: Fits your active lifestyle.
Reasons to believe:
1. Distinctive trend setting styles.
2. Branded retail experience (concept stores)
3. Co developed celebrity lines( Nuala)
4. Co branding partnerships( Ferrari)
5. Partnerships with famous Designers
6. Promotional events (Fifa)
Contd..

• Persona: elegant, colourful, fresh, spontaneous,

individual, metropolitan, international
• Product Portfolio: Performance and causal footwear,
apparels and accessories , sport equipments
• Audience: Anyone who leads an active lifestyle.
Strategies:
Niche Differentiation Strategy
Puma Sponsors many extraordinary sports teams- Jamician Soccer
team.
Puma categorized its products according to different types of sports.
Puma’s innovative methods: Cell technology, new Shudoh Shoe.
Strong innovative marketing strategy: New collections like Nuala
and Platinum, relaunching the 1970 and 1980’s collection and
calling it retro look .
Strong brand positioning: Worn by Madonna, displayed in exclusive
boutiques next to luxury brands endorsed by famous athletes like
David Beckham, Boris Beckar etc
PESTEL
Political / Legal
Different international and
local laws because of
outsourcing to low cost
countries
Trade restrictions and tarrifs

Economical
Economic trends of home country Environmental
(Germany)and partner countries in Eco friendly products
terms of stocks,monetory issues

Social
More and more people are into sports
Technological Sports an important aspect into
Focus on RND tourism industry
Application of automation and new Popularity of new sports such as
technologies skateboarding and diving
Global communication Demographics –more women into
sports
SWOT Analysis:
Strength Weakness Opportunities Threats
Innovation Wanting to address The growth of the Imitation of
customers from fitness industry products
every social
segment.
Careful company Product sold at dirt Technology High competition.
partnerships cheap prices. Growth
Branding and Value chain issues Globalization
Positioning
Endorsement of Narrow product
charismatic line
Celebrities.
Outsourcing raw Not present in all
material and markets.
production.
Puma Concept
Stores
Tie ups with
PORTERS
Threat of new entrants-
low
•Established dominated
players like nike,adidas
•Brand positioning
•Customer loyality to
established brand

Bargaining
power of supplier- Competitive rivalry-
low high Bargaining power of
•Fragmented •Cutthroat buyer-high
suppliers competition- •Price sensitive
•Raw materials adidas,nike,diesel •Customer
and cheap •Differentiation preferences
resources strategy •Brand loyal

Threat of substitute
products-high
•Undifferentiated
products offered by
players
•Trends and fashion
Key Success Factors:
Design and development of high quality sportswear
and apparels
Customer loyalty and brand awareness
Brand positioning and Brand endorsement
Continuous marketing research and innovative
products
Good supply chain management-JIT
Conclusion:
To increase the Market Shares in Asian Market.
To Invest more capital in R and D.
Aim to develop its market in accessories.
THANK YOU!!!!