College of Business and Economics Ramon V. Del Rosario Sr.

Graduate School of Business
Case Study

Puma Socks
In Partial Fulfilment of the Requirements in Marketing Management Submitted by: -Group 3Dimayuga, Maco Macalanda, Richard Ramos, Ava Marie Realo, Glenn Wang ,Grace Submitted to: Professor Emilio Bruan Date submitted: November 6, 2009

 In terms of promotions and events.I. it is limited only to the standard sports socks made up of thick knitting and the Puma logo and design that is known internationally. Weaknesses  As for Puma’s attributes. Philippine Garments Industry. MARKETING MANAGEMENT – PUMA SOCKS 2 . intensification of its Research and Development. Looking at its debt and equity ratios.  Burlington is affiliated with several related industry associations such as Philippine Exporters Confederation.  Based from the data in the case. the company has done modernization of machines. Inc. Burlington is able to capture 41% of the market. and Philippine Retailers Association. Opportunities  Around 40% of Puma’s sales came from SM Department Store. every Puma International advertisement should benefit the company’s Puma socks as well.  Puma Sports Socks is a brand exclusively licensed in the Philippines to Burlington Industries. they can share best practices with each other.  Financially speaking. The Hosiery Association. In fact. the company is financing its operations mainly from debt. Burlington finds it difficult to pull down prices of Puma as it may affect the quality of the socks. Burlington can further boost up its sales should SM put up additional department stores in other areas. When businesses are part of a group. since it has been registered and licensed with Puma International apparel. to be the leading quality socks manufacturer. and has taken more aggressive steps to establish its presence more widely in the Philippines.  In terms of price. Burlington partly relies on the familiarity of the people with the international brands that they carry. a corporation known for its innovative and quality products. innovations in design. For instance. Summary of Case Facts Strengths  Puma is known to be the top-of-the-line sports socks with over four decades of solid track record in the hosiery industry and established reputation as the socks authority. a huge portion of Burlington’s current assets is tied up to inventory.  Driven by Burlington’s corporate vision.  The company believes that it manufactures a more extensive line of socks and in broader price range than any of its competitors allowing them to capture additional market share. it can be assumed that Burlington has not clearly defined its target market and properly positioned Puma’s brand..

sales peak up during first days of school and during Christmas season.  Cheap imports from China have been a continuing threat.  Manufacturing of socks involves the use of chemicals. which could affect consumer-spending habits and have an adverse effect on the Company’s results of operations.  Since Puma has been involved with PBA.  There is a possibility that individuals could be much more aware of socks as a means to a more hygienic way of wearing footwear.  Makati City’s re-zoning of their plant’s and office’s location from industrial to commercial. This means better workmanship since machines come up with consistent outputs which are very critical in maintaining high quality. Nike and Adidas in terms of brand image and price. Sock-making industry has gone machine-intensive.  Socks could be used to make fashion statement amongst the fashion conscious.  The summary of the customer survey made by the company for class B market showed that Puma is perceived as exclusive socks for boys. This would mean that Burlington’s products would have to compete with cheaper imported products from other parts of the world.  The consumer’s buying decision process is affected by seasons and trends. for example.  Recent trend towards a more care-free lifestyle with regard to the proliferation of ‘flip flops’ and branded sandals could mean a lesser market share for the company. II. Couple this with increasing prices due to inflation and a stagnant minimum wage.  Purchases of apparel tend to decline during recessionary or other periods of uncertainties regarding future economic prospects. Threats  Tight competition with Dickies. targeting and positioning strategies they need to develop to strengthen Puma Socks brand. some of which may be significantly larger and more diversified and have greater and other resources than the company. This would in effect raise the tax rates for the company and greatly affect its bottom-line.  Burlington competes with numerous brands and manufacturers of socks. Company Issues  Burlington has a dire need to consider what further segmentation. a large portion of the Philippine population would rather have cheap but substandard goods rather than their counterparts. These chemicals are harmful to humans upon contract even with just the emitted fumes. this could mean higher costs of importation for Burlington.  Since the company also imports a substantial portion of its inventory from China. any CSR activity of the PBA league would naturally involve the company. MARKETING MANAGEMENT – PUMA SOCKS 3 .

it helps Burlington to position Puma Sports Socks effectively and appropriately. V. psychographic and behavioral characteristics of PUMA Sports Socks consumers. and gives them a clearer picture of its competitors. By identifying the best distribution and communication channels. Disadvantage: MARKETING MANAGEMENT – PUMA SOCKS 4 . Objectives  To identify the barriers that prevents Puma Sports Socks target market from buying the product. Thus.  To recommend specific plans of action and provide marketing programs which will strengthen Puma Sports Sock Brand.  Through concentrated marketing.  This action helps Burlington easily select the best distribution and communication channels. Statement of the Problem  What can be done to establish a distinct brand image for Puma which will differentiate it from the other in-house brands of Burlington and from competition? IV.  The company has to discuss what marketing communications strategies can be availed of to project Puma’s International renown as a sports socks brand. segments can be effectively reached and served. Decision Options Decision Option #1: Further define target market by specifically identifying demographic.  To formulate strategies or decision options that would establish a distinct brand image for Puma Sports Socks. Burlington gains a strong knowledge of the segment’s needs and achieves a strong market presence. Advantage:  Identifying a well-defined target market enables Burlington to create a more fine-tuned product offering. which are the companies going after the same segment. The company needs to think of favorable consumer behavior and attitudes factors that can be leveraged to achieve Puma’s branding strategies.

planning.  As Burlington increases the number of claimed benefits or features for Puma Sports Socks. and image dimensions to make Puma Sports Socks distinct from competition. Decision Option #2: Clearly communicate the central idea behind Puma Sports Socks’ brand to its target customers. Burlington runs the risk of committing a major positioning brand – underpositioning. Thus. earnings will drastically fall.  Concentrated marketing involves risks. and attribute positioning strategies to reposition Puma’s brand. The company has to develop separate marketing plans for this particular segment. Disadvantage:  Puma. A particular market segment can turn sour.  Repositioning the product’s brand creates a customer-focused value proposition. forecasting. This requires extra marketing research. promotion. place. Decision Option #3: Re-engineer market offering along product. or a competitor may invade the particular segment. When consumers of Puma Sports Socks stop buying the product. sales analysis. confused positioning. overpositioning.  This will create a highly differentiated picture of Puma Sports Socks in the target market’s mind. they risk disbelief and a loss of clear positioning. is limited only to the standard sports socks made up of thick knitting and the Puma logo and design that is known internationally. user. In short. Advantage:  Consumers will be able to easily distinguish Puma Sports Socks from other competing brands or Burlington’s in-house brands. This requires every tangible aspect of product. Hence. The company shall implement benefit. being registered and licensed with Puma International apparel. This gives customers a clear picture of what the product promises or delivers. it entails additional administrative costs. MARKETING MANAGEMENT – PUMA SOCKS 5 . price. or doubtful positioning. Advantage:  Clearly communicating the central idea behind Puma Sports Socks’ brand delivers a distinct image about the product offering to the target market. and promotion to support the chosen to positioning strategy. channel. and channel management. it would be difficult for Burlington to completely alter the physical attributes of the product. giving the target market the reason to buy the product. Disadvantage:  Repositioning Puma Sports Sock’s brand also involves additional administrative costs.

Children  Age: 4-7. Targeting. Teen-aged boys and girls. psychographic and behavioral characteristics of PUMA Sports Socks consumers. Programs / Action Plans In relation to our recommendation. MARKETING MANAGEMENT – PUMA SOCKS 6 . which can then make the market confused as to what to expect from the product being offered. Burlington may wish to make Puma sock’s brand appear Energetic and Stylish.VI. Adults  Social Class: Upper Middles. Fashionconscious  Personality: This variable can be used to segment markets by endowing products with brand personality that corresponds to a target consumer personality.) VII. and Upper uppers  PSYCHOGRAPHIC  Lifestyle: Sports-oriented. a company who does not have a clearly defined target market may result to poor positioning. In this regard. In this case. the company can work out the rest of its marketing planning and differentiation from its positioning strategy. 9-12. Lower Uppers. In the case of Puma. and then positions its offerings so that the target market recognizes the company’s distinctive offering and image. Recommendation The group recognizes that all marketing strategy is built on Segmentation. the group recommends Decision Option #1 (Further define target market by specifically identifying demographic. People vary considerably in the benefits they seek from the same product. A company discovers different needs and groups in the marketplace. Outdoor-oriented. targets those needs and groups that it can satisfy in a superior way. Burlington should emphasize the durability and design of its sports socks. And by having an excellent job on positioning. and Positioning. On the other hand.  Benefits: Buyers can be classified according to the benefits they seek. Female. This implies that a company with clearly defined target market has an advantage of positioning their products or services more effectively. Burlington has to specifically segment its market as follows:  DEMOGRAPHIC  Gender: Male.

 They could also promote loyalty card where the customers get a discount every time they buy Puma and Burlington products.  Aside from the existing product lines of Puma Sports Socks.  Puma Socks can gain a lot of attention from well-placed newspaper and magazine stories and appearing visually in selected films. This could pave the way for them towards the development of more collegiate programs. Moreover. By doing so. Puma would be able to increase its popularity and establish its brand’s reputation while helping deserving students through scholarship grants.  Burlington shall intensify its event marketing campaign. This is the best time for Burlington/Puma to be more active and assertive in sponsorships and an opportunity to become more visible in the market. etc. Burlington may implement the following marketing programs to promote their product:  Burlington could select one of the preferred universities in the country and support its scholarship for athletes.To reinforce Puma’s modified market. The concept can be patterned from Bench Underwear or Massimo Bikini fashion shows.  Also. they could sponsor athletic events to promote Puma Socks and create brand exposure to the participants and the media. create new set of socks specifically appealing to ladies with athletic fashion sense and with active lifestyle. One example of an event is fun-run. demands for running accessories are becoming larger. One project they can implement is to put up an annual fashion show which will feature the latest designs of Puma Socks. Burlington in coordination with Puma Philippines may grant universities to co-brand its merchandise. MARKETING MANAGEMENT – PUMA SOCKS 7 . This will help Burlington to showcase that Puma Socks can be worn by both genders. Adidas Philippines gave the global brand the exclusive right to co-brand DLSU merchandise. friends and networking. some may be for fun. health reasons. This will encourage existing customers to patronize Puma Sports Socks every time they would want to buy socks. For instance.  Burlington/Puma can also team up with energy drinks and other sports drink as a form of advertisement.  People are becoming more interested in running for one reason or another. where participants will be given Puma Sports socks. Whatever reason they may have.

 Other advertising campaigns would involve hiring endorsers like Chris Tiu and Rachelle Ann Daquis who are fitted with Puma’s description of its target market – stylish and athletic. Planet Sports. and other Sports-related boutiques. MARKETING MANAGEMENT – PUMA SOCKS 8 . they shall continue distributing their products to specialty stores such as Toby’s. Create billboards and utilize internet and mobile phone marketing that promote Puma Sports Socks – focusing on its unique athletic yet stylish design. They may expand its operations to Ayala Malls and Rustans.  Burlington/Puma must also expand its distribution channel to efficiently serve its target market. Furthermore. Olympic World.