Qian Chen Josh Mattes Neha Parekh Jessica Patel Ray Riga Tracey Ziober

PUMA

Agenda
Strategies and Objectives Financial Overview Annual Promotion Plan

Positioning Strategy
PUMA is a high quality athletic brand that makes a fashion statement
Target Market
1. Youth in urban markets who want to express individuality and make a fashion statement 2. Athletes across multiple sports who want to make a fashion statement 3. Young professionals who want to signal wealth and status while making a fashion statement

Price Point
< $100

Product Example

$100 - $200

$200 +

Designer Product Lines

Christy Turlington Yasuhiro Mihara Neil Barrett Alexander McQueen Jil Sander

Distribution Strategy
Freestanding Retail Stores
31 in 18 states Mall and street locations

Wholesale Trading Partners

Foot Locker, Foot Action Nordstrom, Neiman Marcus, Macys Paragon, other sporting goods stores

e-commerce

Financial Overview
2006 (m euro) Sales Footwear Apparel Accessories SG&A of which mk tg and retail Earnings before taxes 2,369.2 1,420.0 795.4 153.8 831.8 419.6 374.0 % of sales change vs. PY 33.3% 20.9% 67.8% 19.6% 47.6% 54.3% -7.4%

59.9% 33.6% 6.5% 35.1% 17.7% 15.8%

U.S. sales = 620.2M dollars, +31% vs. 2005

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

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

Promotion Objectives
Further penetrate extreme sports market Create buzz and awareness in young, urban, hip market Increase relevance to fashion-conscious consumers

Budget Allocation
Annual US marketing budget is $110M

sports related 35% Other 5% lifestyle related 60%

Sports-related activities Maintain and develop PUMAs brand associations with sports Lifestyle-related activities Enact strategy to move to more upscale customers Other activities Generate positive PR and low-cost buzz

Sports Sponsorship

Leverage existing player sponsorships Focus on niche and extreme sports

Lifestyle

Lifestyle: Associate with Upcoming Musicians

Lifestyle: The PUMA VIP Card

Lifestyle: Fashion Week

VIP Contest: two all-access passes to Fashion Week

Cause-Related: The Florida Panther

Donate a portion of profits to Friends of the Florida Panther Refuge Work with Panther Posse student groups Tie-in with Miami Fashion Week & WMC

Buzz Marketing
The Adventures of PUMA
Consumer-generated content: Short documentaries from the ground level Travel/lifestyle focus Contest: Winning content will be aired on TV and consumer will win a trip

Giant PUMAs
Giant sneakers affixed to sides of landmark skyscrapers Executed in key cities simultaneously

Calendar

Q&A

Competitive Positioning
NIKE Premium Performance Brand Just Do It

ADIDAS Forever Sport Impossible is Nothing

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