Professional Documents
Culture Documents
In today’s competitive and dynamic world, with every business providing the same
kind of product or services, only that firm which comes up with an innovative idea
can hope to survive in the long run, by attracting and luring customers.
Sports lifestyle is an upcoming sector but, selling sports products has become tough
due to the competition angle attached to it.
Pricing is the key issue and major international players already present in India are
sort of waiting in the wings to see what and how their competitors go about their
strategies
This project deals with the sales and marketing techniques of PUMA. The company
had various numbers of products which the company offers to their customers.
A good marketing strategy should be drawn from market research and focus on the
right product mix in order to achieve the maximum profit potential and sustain the
business. The marketing strategy is the foundation of a marketing plan.
Through this project, I have tried to study the marketing strategies of the PUMA,
since its conception, in the global and Indian market. It also covers the innovative
promotional strategies.
Sports lifestyle is a relatively new and rapidly growing industry in India. This project
studies how PUMA fairs in this race to become India’s leading sports lifestyle brand.
I have also done a comparative study of PUMA with it’s competitors as the level of
competition has a very significant effect on the marketing strategies of any company.
I have also done a brief study of the four P’s of marketing- product, place, promotion
and price.
RESEARCH METHADOLOGY
Research Design: (Theory)
Research design is an overall plan or scheme prepared by the researcher for
executing the research study. It is an important stage in the process of conducting
research as it facilitates systematic work on the research project. It is necessary as it
facilitates the smooth conduct of research. Research design may be designed as the
sequence of steps taken ahead of time to ensure that relevant data will be collected in
a way that permits objective analysis of different hypothesis formulated with respect
to the research problem. Research Design is a blue print for collection, measurement
and analysis of data. Descriptive research is used in this projects report in order to
understand the perceptions of different consumers towards Puma products and their
behaviour patterns.
Data Collection
Data Collection helps to assess the health of your process. To do so, you must
identify the key quality characteristics you will measure, how you will measure them,
and what you will do with the data you collect. Data Collection is nothing more than
planning for and obtaining useful information on key quality characteristics produced
by your process. However, simply collecting data does not ensure that you will
obtain relevant or specific enough data to tell you what is occurring in the process.
A. PRIMARY DATA:
The primary data is the data in which the researcher collects data through various
methods like interviews, surveys and questionnaires. Primary data in this project was
collected with the help of a structured questionnaire. The sample size was of 100
respondents from Delhi NCR region.
B. SECONDARY DATA:
Secondary data is used to mainly support the primary data. Secondary data was
collected through books, annual reports, previous reports, and magazines and
literature available on Internet regarding the topic of study.
I HAVE USED PRIMARY DATA FOR MY RESEARCH PROJECT
EVOLUTION OF LOGO
1924: Gebrüder Dassler Schuhfabrik
1924
First successes: At the Olympic Summer Games in Amsterdam in 1928, a majority of
the German athletes wear Dassler spikes. In 1936, Jesse Owens wins four gold
medals at the Olympic Games in Berlin sporting Dassler spikes. Overall, seven gold
medals and five bronze medals are won by world class athletes in Dassler shoes and
two World and five Olympic records are smashed. This represents the international
breakthrough for the Dassler brothers.
1948
Rudolf Dassler founds the PUMA Schuhfabrik Rudolf Dassler. The company is
officially registered on October 1, 1948. The existing business assets of the
“Gebrüder Dassler Schuhfabrik” are divided up between the brothers.In the same
year, PUMA’s first football boot, the “ATOM”, is launched.
1950
Rudolf Dassler successfully develops a football boot with screw-in studs in
collaboration with experts, such as West Germany’s national coach Sepp Herberger.
The launch of the “SUPER ATOM” in 1952, the world’s first boot with screw-in
studs.
In 1953, The successor of the screw-in football boot “SUPER ATOM” is coming to
the market: the enhanced version “BRASIL” is being developed and tested. In 1957,
Rudolf Dassler introduces a sans-serif PUMA typeface, designing a word and picture
logo at the same time. One year later, the second brand logo is patented.
1960s
In 1966, at the World Cup in England, the new and now legendary PUMA KING
football boots are sported by Portuguese superstar Eusebio . The logo with the
jumping cat, today one the most famous trademarks worldwide, is created by Lutz
Backes,
Pelé, for the second time in a row, wins the World Cup in Chile with his team in
PUMA boots and is named “Best Player of the Tournament”. The “Sacramento”
brush spike amazes with its innovative brush soles.
1970s
In 1970, Brazilian football star Pelé helper Brazil to win WorldCup in Mexico
wearing Puma football boots. The next major success came in 1985 when Germany’s
Boris Becker won Wimbledon using Puma products.
The company goes public as “PUMA AG” and the PUMA stock is traded on the
Munich and Frankfurt stock exchanges. By the end of the eighties, Puma was an
“economic basket case” sold in big department stores for very little money. Puma
had lost itself in the mass market and was still producing in Germany.
1993
Jochen Zeitz is appointed CEO at the age of 30, becoming the youngest Chairman in
German history to head a public company. Zeitz spearheads the restructuring of
PUMA, in financial difficulties at the time, and manages to turn it from a low price
brand into a premium Sportlifestyle company and one of the top three brands in the
sporting goods industry.
2007
The PPR group (named Kering as of 2013) – a world leader in apparel and
accessories – acquires over 60% of PUMA’s shares. The consolidation strengthens
PUMA’s position and creates a perfect platform for the continued global expansion
of the company.
2011
PUMA transforms into a European Corporation and trades under the name of PUMA
SE. With the completion of the transformation, Franz Koch becomes Chief Executive
Officer and succeeds Jochen Zeitz after 18 years as Chairman and CEO of PUMA
AG.
2013
BUSINESS UNITS
At PUMA, they offer performance as well as sport style products across six Business
Units. The Business Units are comprised of Team sport, Running and Training, and
Golf, which represent our Performance business; as well as Motorsport,
Fundamentals and Sport style and Accessories and Licensing.
PUMA’s team sport business focuses on regaining credibility in sports performance,
in particular through football. PUMA continues to excel with new and exciting
product innovations. In January 2014, PUMA launched its most innovative football
boot to date, the evoPOWER.
RUNNING & TRAINING
PUMA has had a heavy impact in the running industry through numerous stories that
tell of records and innovation. PUMA has had an extensive portfolio of Track and
Field legends through the years including European Gold Medalist, Heinz Fütterer;
Armin Hary; Olympic medalist, Linford Christie; multi-medalist, Marlene Ottey;
record breaker, Evelyn Ashford; World Record holder, Wilson Kipketer and today,
the World’s Fastest Man, Usain Bolt.
GOLF
In the Golf Business Unit, they continue to bring their message of Game Enjoyment
to life. Cobra Golf, founded in 1973, is one of the world’s most renowned golf club
manufacturers. In 2010, PUMA purchased Cobra, and created COBRA PUMA
GOLF.
MOTORSPORT
Since the end of the last century, PUMA has been designing and creating
footwear and apparel for top motorsport racing teams and drivers.
PUMA’s accessories round off the collections of the other Business Units in order to
build strong, comprehensive packages and to create a complete look. This unit
focuses on brand enhancement, concentrating on four key categories to support the
core business: Fragrances and Bodycare, Glasses (optical and sunglasses), Watches
and Security Boots.
SPONSORSHIP
In cricket, Puma is the official apparel sponsor for the Deccan Chargers (representing
the city of Hyderabad), and Rajasthan Royals (representing the city of Jaipur) in the
Indian Premier League. International cricketers such as Yuvraj Singh (India), Craig
Kieswetter (England), Adam Gilchrist (Australia) and Brendon McCullum (New
Zealand) endorse the brand, and use the brand's cricket gear.
In track and field Puma is best known as the sponsor of Usain Bolt and the Jamaica
athletics team. Puma is also a sponsor of the web show The Legion of Extraordinary
Dancers.
INNOVATIVE PROMOTION STRATEGIES
At the World Cup in Germany, Johan Cruyff refuses to play in a different outfit as he
feels closely connected to the brand. So a custom-made design is made for him,
featuring only two stripes. A legend is born.At the Olympic Games in Atlanta,
PUMA causes a stir with a creative contact lens campaign: at a press conference
prior to the Games, Linford Christie appears with a white PUMA cat on top of his
pupils in 1996.
.
In 2002, PUMA and Serena Williams unveil the “Serena Williams Tennis
Collection”. In the same year, she causes a stir worldwide in her skintight “Catsuit”
and wins at Wimbledon
In 2004, the “Indomitable Lions” follow up with their equally controversial one-
piece PUMA UniQT, which removed unnecessary bulk and limited shirt-grabs by
opponents. FIFA punishes the team by revoking six points in the qualification for the
2006 World Cup and imposes a fine
PUMA sets sail for the first time by entering its own sailing yacht “il mostro” into
one of the longest and most difficult sailing races in the world – the Volvo Ocean
Race in 2008
CURRENT MARKETING STRATEGY
In 2013, PUMA’s CEO Bjørn Gulden introduced PUMA’s new mission statement:
To be the Fastest Sports Brand in the world. The company’s mission not only reflects
PUMA’s new
brand positioning of being Forever Faster, it also serves as the guiding principle for
the company expressed through all of its actions and decisions. Our objective is to be
fast in reacting to new trends, fast in bringing new innovations to the market, fast in
decision making and fast in solving problems for our partners.
Our strategy encompasses five strategic priorities: the repositioning of PUMA as the
World’s Fastest Sports Brand, the improvement of our product engine, the
optimization of our distribution quality, increasing the speed within
ourorganization and infrastructure, and renewing our IT infrastructure.
MARKETING STRATEGIES IN INDIA
Puma is one of the biggest international shoe brands in the world in the leagues of
Nike, Reebok and Adidas. Puma India was set up in 2005 and this was an advantage
for it as the German brand became one of the first international shoe brands in the
country.
Puma has always gone for a subtle branding and communication strategy to target its
customers in the age groups 16-25 years – the ones who use their products the
highest.
Rather than go overboard with TV, Billboard or print advertising, Puma has always
concentrated on digital as well as in – store branding and retailing. Positive word of
mouth from satisfied customers is what Puma has always tried to achieve as its main
communication strategy as this purchase is a high involvement category.
Puma’s strategy is built on left brained communication as it explains the concept of
the brand at a level from which one can form opinions and conclusions. This gives an
option for a person to be judgemental / non – judgemental.
Puma desires to be the brand for people who want something to show off as a status
symbol or to satisfy their esteem needs. Early adopters would leave a brand they
consider as desirable if it starts appearing anywhere and everywhere.
Rather than specially placing a product by its name in a movie, Puma India
concentrates on building attention or awareness about the brand without mentioning
the name. Since the brand appeals to fashion as well as sports conscious individuals,
it strongly relies on digital advertising.
MARKETING MIX
FUTURE PLAN
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, for the business.
VISION AND MISSION
MISSION STATEMENT
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. A better world in our vision— PUMA Vision—would be safer,
more peaceful, and more creative than the world we know today. The 4Keys is the
tool we have developed to help us stay true to PUMA Vision, and we use it by
constantly asking ourselves if we are being Fair, Honest, Positive, and Creative in
everything we do. We believe that by staying true to our values, inspiring the passion
and talent of our people, working in sustainable, innovative ways, and doing our best
to be Fair, Honest, Positive, and Creative, we will keep on making the products our
customers love, and at the same time bring that vision of a better world a little closer
every day. To make PUMA, the dominant company in Indian footwear’s industry.
This we hope to achieve by:
Understanding the needs of customers and offering them superior products and
service Leveraging technology to service customers quickly, efficiently and
conveniently Developing and implementing superior risk management and
investment strategies to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our employees
And above all, building transparency in all our dealings
The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of
the values describe what the company stands for, the qualities of our people and the
way we work.
The following report describes and analyses Puma business's generic and distinctive
marketing strategies, as well as providing accurate industry, competitor, market, and
SWOT analysis'. Evaluation of Puma business’s marketing strategy is conducted,
thus analyzing the strengths and weaknesses of the strategy.
Lastly the report recommends probable future courses of actions obtainable to Puma
business, in order to get better profits and stop mistakes in the future.
If we analyzed then we come to know that Puma be familiar with that ultimately the
consumer buys products which solve consumer desires and requirements. These
desires repeatedly expand and it is vital that products are developed to assemble
these requirements. Puma has two research & growth centres in France and the UK
where the solitary focal point is to produce ground-breaking new products.
INDUSTRY ANALYSIS
Puma is in the department store/large retailer industry, an industry that has very high
levels of competition. Although this industry is extremely competitive and growing
at a fast pace in India, it is still not as large as the department store industry
elsewhere in the world, such as the USA. This is partly due to the fact that there are
boundaries in this industry, particularly in India, as there are few retail stores that can
classify themselves as large department retail stores. Puma is a very competitive and
key participant in this industry, as it is both a producer and a seller. The large retailer
industry can be very volatile due to the impact the environment has on its
participants.
COMPETITOR ANALYSIS
The main competitors of Puma stores are middle- upper class department stores that
stock a wide variety of products. Competition mainly comes in the form of premium
positioned stores in the high-class category such as Adidas and Reebok. In India, the
local competition would come from Bata and Liberty, which are both fashionable
stores that offer alike products at a competitive price.
The main problem faced by Puma, as faced by all other high-class sports brands is
competitive pricing. The lead competitor in terms of pricing in Reebok which has
made a comeback in the Indian markets. Puma has experienced a slight fall in the
competition in this industry sector. On the other hand the middle class sector of the
industry is still highly competitive, with the likes of main rivals Bata and liberty,
which cater to a large middle and lower class population, insuring the need for
regular in-store monitoring and maintenance.
MARKET ANALYSIS
Puma main customer base, thus their main target market; are predominantly female.
As the products are of best standing, i.e. premium pricing and brand categories; the
market is customer based, not demand-based. The products fulfill wants and desires
based on image, not needs Puma’s main strategy involves fashion sportswear as it
continues to collaborate with major designers and become a leading sports lifestyle
brand. Customers seek the product and service benefits of the image of Puma. In the
Indian market, Puma strives to be a status symbol and appeal to the worldly mindset
of the people which gives it an edge. Geographically speaking, the market for large
department store such as Puma is mainly concentrated in large shopping centers. In a
large shopping center or downtown shopping district, the market is strong, with good
profit potential.
Department stores positioned as premium are hard to imitate and start because they
are built on the prestige of the brand.
Puma is the main producer of enthusiast driving shoes and race suits. They are the
primary producer for Formula One and NASCAR clothing. They won the rights to
sponsor the 2006 FIFA World Cup champions, the Italian national football team,
making and sponsoring the clothing worn by the team. They entered a partnership
with Ferrari, Ducati and BMW to make Puma-Ferrari, Puma-Ducati and Puma-BMW
shoes. On 15 March 2007 Puma launched its 2007/2008 line of uniforms for a club,
and Brazilian football club Grêmio will be the first to use the laser-sewn technology,
similar to that worn by Italy at the 2006 World Cup, because their season starts six
months earlier than European clubs
STRENGTHS
PUMA is very innovative and has a very rich Research and
Development team. The Company produced the first screw boots for
football and “Mexico 68” with the innovative brush soles, which
were the most comfortable running shoes
Strengths of PUMA are that it is an established brand in
over 90 countries, and is a very popular, well-known brand
throughout the world. This means that they have a huge target
audience. Their famous logo with the jumping cat is today one of the
most famous trademarks worldwide. Their extensive product range,
from world class football boots to casual hoodies, helps to reach a
wide audience and therefore they can reach a large target audience.
The brand has excellent management and marketing
strategies and has the advertised the products very well and eye-
catching throughout the world.
PUMA sponsor many top athletes, as said in previous posts,
such as the world-record-holding athlete: Usain Bolt. For them this
provides major funding as it means that their brand is on show to the
world and it must therefore be a good brand if top athletes are using
their products. This boosts customer appeal as it acts as a walking
advertisement. They were also the official sponsor of the FIFA
World Cup in 2006, which again is advertisement to the whole world.
PUMA’s products, in particular their football boots have
been creatively and innovatively made through advancements in
technology. For example, in the 60s, they were the first sports shoe to
use the vulcanization production technique. Today, they use careful
study of biomechanics and zoning which leads to the use of specific
material and construction in specific areas of the foot in their football
boots
27
WEAKNESSES
PUMA has tough competition, and limited market share,
from large companies such as Nike and Adidas who are in the same
market.
They have less financial strength compared to other brands
in the industry meaning that they may not be able to invest in new
products or technologies where others might
OPPORTUNITIES
The company can attain more sponsorship as more
international events in the sporting industry are taking place.
The company can start entering the lifestyle section of the
industry.
THREATS
The current economic situation is very bleak, hence
expansion is minimal.
There is extensive completion from existing players an new
players which is growing in the industry
Imitations or fakes of the brand are extensively increasing
28
Questionnaire
*Required
Name of Respondent
15 or less
15-30
30-45
45 above
Student
Business
Professional
Gender of respondent. *
o Male
o Female
o PUMA
o Reebok
o Adidas
o Nike
o Other:
29
Have you used PUMA products before ? *
o yes
o no
Which products manufactured by PUMA have you tried?
o Shoes
o Apparel
o Watches
o Fragrances
o other equipment
o Cheap
o Fairly Priced
o Expensive
o Yes
o No
o At a company outlet
30
o On-line stores
o local stores
o status
o comfort
o quality
o fashion and trend
31