PUMA Needs to Focus on Sustainability, Health Trends and Fashion to Differentiate from Rivals

Strategie
Konzept
Hannah Weber
Svenja Fuchs
Annika Schubert
Anastasiia Denysiuk
HAW Hof
Master Marketing
Management
2022
1
1
Gliederung
1. Management Zusammenfassung
2. Fakten und aktuelle Unternehmensstrategie
3. Markt- und Branchenanalyse
4. Interne Faktoren und Wettbewerberanalyse
5. Schlussfolgerungen und Empfehlungen
Hannah Weber, Svenja Fuchs, Annika Schubert, Anastasiia Denysiuk Strategie Konzept – PUMA
2
Puma needs to differentiate from competition by focusing on sustainability, health consciousness and a fit and fashionable lifestyle while boosting its price strategy
Management Zusammenfassung
• Puma wants to be the fastest fashion brand serving women, men and children on a global scale
Fakten und aktuelle
• Puma stands out from their competitors by focusing on sustainability, women and fashionable and
Unternehmensstrategie innovative sportswear and by including a variety of celebrities in their marketing
• Industry is driven by a high rivalry among competitors as well as a medium risk of counterfeit products
Markt und • Social factors such as a trend to health consciousness and other consumer preferences highly shape
Branchenanalyse the industry
• Swift adaption of economic changes and environmental consciousness gain importance
Interne Faktoren und • One of the biggest competitors and market leader is Adidas with a similar strategic aim
Wettbewerberanalyse • Another competitor is Reebok; however, Puma is far ahead with its market share and brand value
• Focus on trends of sustainability, health consciousness and fit and fashionable lifestyle
Schlussfolgerungen und • Work on price strategy with limited and unique product lines and editions
Empfehlungen • Boost already established celebrity endorsement marketing and broaden the sponsorships
• Differentiate from competition by focusing more on women segment and sustainability
3
Gliederung
4
46% of the German company’s sales are located in the footwear industry as the main product category
Key Facts
Public company Sales of 2019

16%
38%
Apparel, footwear and accessories industry
Target groups are men, women and children 46%
Apparel Footwear Accessories

Around 14,300 employees in 2019
Headquarter in Herzogenaurach
Björn Gulden as CEO
Fitnessapp Pumatrac
5
46% of the German company’s sales are located in the footwear industry as the main product category
Die wichtigsten Fakten
6
Over the years, PUMA started to be associated with the combination of sports and fashion
Major Milestones
The brothers separated

Beginning of athletic Women turnaround with
and Rudolf named his Design of the ‘formstrip’
fashion Rihanna
business PUMA
1919 1948 1950 1958 1967 1998 2013 2015
The brothers Rudolf and

Adolf Dassler founded PUMA started to be Design of the famous
Björn Gulden as CEO
the company ‘Gebrüder associated with sports logo
Dassler Schuhfabrik’
7
Over the years, PUMA started to be associated with the combination of sports and fashion
Unternehmensgeschichte
8
In the last years, the company did not face any financial problems; the financial situation is steadily improving
Key financials
1 1 1
Global revenue in billion € Net income in million € EBIT in million €
6 5.5 140 128.7 500 440.2
5 4.65 120
4.14 400 337.4
4 3.63 100 83.3
3.39 78.7 300
80 68.5 244.6
3
60 200
2 37.1 127.6
40 96.3
1 100
20
0 0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
2
ROI in %
16
14 13.5 13.4
12 10.2
10 • Global revenue and EBIT of PUMA steadily grew between 2015 and 2019
8 •
6 5.5 Highest net income in 2017 with 128,7 million €
4.3
4 • Since 2017 the net income has declined
2
0 • ROI continuously increased with a stagnation in the years 2018 and 2019
2015 2016 2017 2018 2019
11.05.2021 Source: 1) Statista 2) finbox.com Concept Paper – AC, LH, LH, IP 9

In the last years, the company did not face any financial problems; the financial situation is steadily improving
Finanzkennzahlen
10
Puma should expand strategic choices in the capabilities to boost growth while minimizing the gap to the market leaders
Integrated Cascade of Strategic Choices
What is Puma‘s
winning
aspiration?
Where will Puma
play?
How will Puma
win?
What capabilites
 Vision and must be in place?
Mision – What management
Forever Fastest systems are
 Products: Shoes, required?
Clothing and
Accessories  Value Drivers
 Worldwide of Puma
Omni-Channel  Design and Lifestyle
Distribution  Understanding
 For women, men female customers  Turnaround
and kids that  Sustainability Strategy
combine fashion  Innovation
and sports  Supply of sports
11.05.2021 Source: Statista Concept Paper – AC, LH, LH, IP 11
Puma should expand strategic choices in the capabilities to boost growth while minimizing the gap to the market leaders
Integrierte Kaskade von strategischen Entscheidungen
12
The winning aspiration of Puma is to be the fastest sports brand in the world
Integrated Cascade of Strategic Choices – What is Puma´s winning aspiration?
OUR VISION OUR MISSION
FOREVER FASTER
TO BE THE MOST DESIRABLE AND Forever Faster is more than being quick. It is our mantra.
SUSTAINABLE SPORTLIFESTYLE COMPANY It is 70 years of fast products for fast athletes.
IN THE WORLD We aim high, and when we score our goals, we aim even
higher. All to achieve one thing: to be the Fastest Sports
Brand in the World.
Both the vision and mission statements of Puma are based on the turnaround strategy with five defined priorities:
1. BRAND HEAT: high credibility in the latest lifestyle trends and sports through partnerships
2. PRODUCT: innovation is the heart of product design – with eye-catching and commercial styles
3. WOMEN`S: offer positioning for women “where the gym meets the runway”
4. DISTRIBUTION: presence expansion in key sports performance and style accounts in concert with retail partners
5. ORGANIZATION: enhancement of Puma’s International Trading Organization
11.05.2021 Source: Puma Concept Paper – AC, LH, LH, IP 13

The winning aspiration of Puma is to be the fastest sports brand in the world
Integrierte Kaskade von strategischen Entscheidungen – Was ist das Ziel von Puma?
14
Large product portfolio with major revenue share in the realm of shoes with 46% globally
Integrated Cascade of Strategic Choices – Where will Puma play? - Product types
Shoes Clothing Accessories Sports Puma Brands

• Sneakers • Sports Bras • Bags • Training
• Running • T-Shirts & Tops • Backpacks • Yoga + STICHED,
COBRA PUMA GOLF
• Training • Polos • Hats • Running and Pumatrac
• Golf • Sweatshirts • Sunglasses • Swimwear
• Sandals • Jackets • Watches • Football
• Motorsport • Pants Dresses • Equipment • Golf
• Winter Shoes & Skirts • Wallets • Motorsport
• Swimwear • Balls • Basketball STICHED
• Underwear • Shoe care • Handball • affiliate company making bodywear
• Gloves • Esport for PUMA and other brands such as
Tommy Hilfiger, Levi`s or Head
 46% of revenue  38% of revenue  16% of revenue
COBRA PUMA GOLF

• COBRA PUMA GOLF distributes
shoes, apparel, golf accessories such
 Categories distinguished in women, men and kids as tools and clubs
 Special collections for lifestyle, running and training, football, motorsport and
basketball with brand ambassadors such as Pamela Reif for fitness, Lewis Pumatrac
Hamilton for motorsports and Neymar for football, sport teams and brands • FitnessApp for workouts and running

Large product portfolio with major revenue share in the realm of shoes with 46% globally
Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Produkttypen
16
Buyer personas of Puma want to combine sport and everyday outfits - while predominantly being female customers
Integrated Cascade of Strategic Choices – Where will Puma play? - Consumer Segment
Women as a growing segment…
Athletic women, men and kids…
… that turn athletic wear into everyday outfits
… that are fans of great athlets such as Usain Bolt,
Pelé, Serena Williams or Boris Becker … where Puma focuses on understanding
… that are fans of international sport clubs such as the modern female athletic consumer
Borussia Dortmund or AC Milan … with the strategic priority
… with a middle to upper income level “where the gym meets the runway”
... active in Puma´s main sport categories
Puma products are made for…

Consumers focussing on sustainability…
Modern young consumers… … that value sustainable materials and ethical
… that are trend-setting with collaborations working conditions
of culture and fashion icons such as Selena … that are interested in how the
Gomez or Cara Delevine
products are made
… that are fans of circularity principles
in recycled materials
Target group of Puma are young women and athletes who want to combine sport and everyday outfits
11.05.2021 Source: 1) Puma 2) annual-report-2017.puma.com Concept Paper – AC, LH, LH, IP 17

Buyer personas of Puma want to combine sport and everyday outfits - while predominantly being female customers
Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Kundensegment
18
Puma serves different values and segments being most suitable for modern customers
Integrated Cascade of Strategic Choices – Where will Puma play? - Consumer Segment
Carlo – Maria – David – Julia –

professional athlete amateur athlete casual athlete living a fit lifestyle
Age: 33 48 21 26
Profession: Basketball Player Sales Manager Student Nurse
Goals: Performance Price-quality ratio Low price + sustainable Design
Quality: - + - + - + - +
Design: - + - + - + - +
Price: - + - + - + - +
Functionality: - + - + - + - +
Brand Image: - + - + - + - +
Sustainability: - + - + - + - +
Served by Puma - + - + - + - +

Puma serves different values and segments being most suitable for modern customers
Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Kundensegment
20
Worldwide growing turnover with largest share in EMEA and Americas adding up to nearly 75% of turnover share
Integrated Cascade of Strategic Choices – Where will Puma play? - Geography
Puma divides its consolidated sales into three geographic regions: Regional turnover development from
2015 to 2019 in million €
2,500
2,000
EMEA
Americas 36,4%
1,500
35,3%
1,000
Asia/
Pacific 500
28,3%
0
EMEA Americas Asia/Pacific
2015 2019
 Region with the largest sales share was Europe, the Middle East, and Africa (EMEA) with 36.4 percent in 2019
 Puma´s headquarter is located in Herzogenaurach, Germany
 Countries with most significant growth in 2019 are Germany, Italy and Spain for EMEA, Northamerica for Americas and China and
India for the Asia/ Pacific region
Worldwide growing turnover with largest share in EMEA and Americas adding up to nearly 75% of turnover share
Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Standorte
22
An Omni-Channel Distribution Strategy with focus on wholesale enables sales in more than 120 countries globally
Integrated Cascade of Strategic Choices – Where will Puma play? - Distribution Channel
Worldwide turnover of Puma in 2019, by distribution channel Omni-Channel Distribution Strategy

in million €
Product Sales Mix Channel Mix Regional Mix

1395.3
Offline Online
Direct to
Corporate
Customer- Wholesale
4104.6 Website
Business
• Full-Price- • International
Stores sport retailers Wholesale
• Factory- • Independeant
Direct to Consumer-Business Wholesale
Outlets retailers
• Above average growth in retail sales • Institutional
• Direct to Consumer-Business can be distinguished in Full-Price- sports
Stores, Factory-Outlets and E-Commerce department
• Wholesale represents 74,6% of Puma´s turnover with global
partners such as Zalando and Asos
11.05.2021 Source: 1) Statista 2) annual-report-2017.puma.com Concept Paper – AC, LH, LH, IP 23

An Omni-Channel Distribution Strategy with focus on wholesale enables sales in more than 120 countries globally
Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Distribution
24
Vast majority of production factories remains in Asia, yet fair working conditions are safeguarded by worker empowering programs
Integrated Cascade of Strategic Choices – Where will Puma play? – Vertical stage of production
2 1
Global Tier 1 and 2 suppliers of Puma Places of production
Comment
• Puma is transparent about

its Tier 1 and Tier 2
suppliers, yet information
about Tier 3 suppliers is
lacking
• Main supplier countries are
China and Vietnam
• To ensure fair working
conditions, Puma Audits,
the Code of Conduct, the
Code of Ethics and
Asian Pacific Region American Region
additional worker
European Region African Region empowering programs are
employed
11.05.2021 Source: 1) Statista 2) Statista Concept Paper – AC, LH, LH, IP 25

Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? – Vertikale Produktionsstufe
26
Puma focusses on value drivers in design, marketing, innovation and sustainability
Integrated Cascade of Strategic Choices – How will Puma win? – Value drivers
Price
Middle to high prices with the possibility to shop in factory outlets
Quality
Above average supplier conditions with high quality
Design
Reputation for merging sports and fashion with modern, urban looks
Innovation
Puma´s ambition is to achieve innovation for performance
Sustainability
Environmental impact of Puma has decreased by 13% from 2013 to 2019
Marketing
50% increase in global marketing spending centered around fashion, sport and culture icons
Global Presence
Global distribution to already strong markets in America and EMEA as well as emerging national markets in most notably India and China
11.05.2021 Source: torrens.edu.au Concept Paper – AC, LH, LH, IP 27

Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? – Vertikale Produktionsstufe
28
Puma perfectly utilizes celebrity endorsement to reach a wide range of potential customers and to increase brand awareness
Integrated Cascade of Strategic Choices – How will Puma win? – Value driver marketing
Brand awareness
• Puma increases brand awareness by

Pamela
working with celebrities, brand
Reif
ambassadors and joint collections
Kareena
Dua Lipa • Sports
Kapoor
• Golf
Lewis • Soccer
Hamilton • Basketball
Selena • Football
Gomez • track and field
Usain • Cricket
Neymar Bolt • Motor sports like formula
• Lifestyle and fashion
• Singers and actresses
 Wide range to reach all customer segments
11.05.2021 Source: 1) Puma 2) opendorse.com Concept Paper – AC, LH, LH, IP 29

Puma perfectly utilizes celebrity endorsement to reach a wide range of potential customers and to increase brand awareness
Integrierte Kaskade von strategischen Entscheidungen – Wie wird Puma gewinnen? – Wertetreiber
30
High brand awareness in the realm of women wear and specific sports allow Puma to achieve a pioneer position
Integrated Cascade of Strategic Choices – What capabilities must be in place? – Core capabilities
Supply of
diverse • Teamsport with a focus on Football and
sport Basketball
disciplines • Track and Field  „Forever Faster“
• Motorsport with the best motorsport teams
• Golf focus with COBRA PUMA GOLF
Sustainabl Lifestyle
• Ten environmental and social e and Design • High brand awareness through
production Creativity
sustainability targets for 2025 Core increased marketing spending in
• Sustainable material usage with collaborations with athlets,
recycled, organic and innovative
capabilities fashion icons and sport clubs
materials such as triaxal weave of Puma • Examples are Puma Fenty, Puma
• European top employer for 2021 Basket Heart or Cali Collection
Understanding
• Slogan „where the gym meets the runway“ female Innovative • Supply of Fit Intelligence Technology shoes
• Overproportional supply of woman wear consumers ideas • Bio-Evolution with the Frauenhofer Institut
• The brand‘s refocus on women and its • Evolocity offering full performance data
female brand ambassadors turned around • Nightcat and EVO TRG Jackets capture and
the company convert the energy of athlets

High brand awareness in the realm of women wear and specific sports allow Puma to achieve a pioneer position
Integrierte Kaskade von strategischen Entscheidungen – Welche Fähigkeiten müssen vorhanden sein? – Kernkompetenzen
32
Gliederung
33
Differentiation and focus on product quality, marketing and operational efficiency is required due to the stiff competition
Industry analysis – Porter’s 5 Forces: Rivalry among existing firms

Worldwide Revenue (in billion euros)
Puma Adidas Nike
40
Rivalry among 30
existing firms 20
10
0
2017 2018 2019
Threats of Threats of
potential substitute • Stiff competition from Nike, Adidas, New Balance, Reebok etc.
entrants products
• Nike and Adidas are the largest competitors
• Revenue 2019 of Nike: 34.88 billion euros
• Revenue 2019 of Adidas: 23.64 billion euros
Bargaining Bargaining • Focus on product quality, marketing and operational efficiency

power of power of
customers suppliers • Differentiation is required to stay competitive
• Customer engagement and customer experience important

Differentiation and focus on product quality, marketing and operational efficiency is required due to the stiff competition
Branchenanalyse – Porter‘s 5 Forces: Konkurrenzkampf zwischen bestehenden Firmen
35
Threat of substitute products is low, since the sportswear market is expected to increase as no threat of substitute products is conceivable at the moment
Industry analysis – Porter’s 5 Forces: Threats of substitute products

Forecast for the development of the global sportswear market (bil-
lion US dollars in sales)
210 207.4
Rivalry among 205 203.34
existing firms 200 195.44
199.35
195 191.61
190 187.85
185 180.83
180
Threats of Threats of 175

170
potential substitute 165
2019 2020 2021 2022 2023 2024 2025
entrants products • Sportswear market is expected to increase
• Growing demand for sportswear and accessories
• Implementation of sportswear into daily life
Bargaining Bargaining • Puma puts much stock in rendering its products sustainable
power of power of
customers suppliers • Mounting demand for sportswear
• Threat of Substitute Products is low

Threat of substitute products is low, since the sportswear market is expected to increase as no threat of substitute products is conceivable at the moment
Branchenanalyse – Porter‘s 5 Forces: Bedrohung durch Ersatzprodukte
37
Low bargaining power of suppliers, since they are often small businesses and heavily dependent on Puma
Industry analysis – Porter’s 5 Forces: Bargaining power of suppliers
Rivalry among Puma’s Supplier Share by Region • Small business size of

existing firms (2017) suppliers
Asia Europe EMEA America
4% 1% 3% • Fragmentation of
suppliers and location
in various corners of the
Threats of Threats of world
potential substitute
entrants products • Lack of forward
integration of suppliers
• Heavily dependent on
92% brands such as Puma
Bargaining Bargaining
power of power of Low bargaining power of suppliers
customers suppliers

Low bargaining power of suppliers, since they are often small businesses and heavily dependent on Puma
Branchenanalyse – Porter‘s 5 Forces: Verhandlungsmacht der Lieferanten
39
The bargaining power of customers is moderately low as a result of Puma´s dominant global market position, yet the importance of customer experience is mounting
Industry analysis – Porter’s 5 Forces: Bargaining power of customers Puma’s sales share worldwide in 2019, by region
Rivalry among
Americas
existing firms 36%
35% Asia/Pacific
EMEA
Threats of Threats of
potential substitute 28%
entrants products • Puma enjoys a worldwide market share
• However, mounting importance of customer experience and
customer satisfaction due to stiff competition
• Higher focus on product quality and customer experience

power of power of • Puma is a global player, which provides the company a
customers suppliers dominant position when it comes to the bargaining power of
customers
• Bargaining power of customers is moderately low

The bargaining power of customers is moderately low as a result of Puma´s dominant global market position, yet the importance of customer experience is mounting
Branchenanalyse – Porter‘s 5 Forces: Verhandlungsmacht der Kunden
41
Threat of potential entrants is low due to the stiff competition and the high barriers to tap into the market
Industry analysis – Porter’s 5 Forces: Threats of potential entrants

Sales of the biggest sportswear companies in 2019/20
(in billion USD)
40
Rivalry among 30
existing firms 20
10
0
Nike Adidas Puma Under Lululemon Columbia
Threats of Threats of Armour
potential substitute
• High capital and know-how is required to enter the market
entrants products
• Difficult to expand globally for many reasons:
• Political and legal matters
• Establishment of a large manufacturing, sales,
supply and distribution network
power of power of • Puma enjoys a strong product portfolio and a financial strength
customers suppliers
• Low threat of potential entrants

Threat of potential entrants is low due to the stiff competition and the high barriers to tap into the market
Branchenanalyse – Porter‘s 5 Forces: Bedrohung durch potenzielle Marktteilnehmer
43
Stiff competition amongst existing firms as the major challenge of Puma that must be circumvent with differentiation
Industry analysis – Porter’s 5 Forces: Summary
Rivalry amongst existing firms: high
Differentiation is required to stay

competitive
Threat of new entries: low Threat of substitute product: low
Stiff competition and major barriers The sportswear market is expected to

impede the entry of new competitors increase and Puma puts much stock in
sustainable products
Bargaining power of customers: low Bargaining power of suppliers: low
Puma as a global player in the dominant position. Small suppliers that are heavily
However, customer satisfaction is very important. dependent on Puma
11.05.2021 Source: Fern Fort University Concept Paper – AC, LH, LH, IP 44
Stiff competition amongst existing firms as the major challenge of Puma that must be circumvent with differentiation
Branchenanalyse – Porter‘s 5 Forces: Zusammenfassung
45
Sports garment and footwear industry is constantly exposed to a multitude of changes and new trends
Industry analysis - PESTLE
Environmental Political
• Eco-friendly products • Vulnerable to political instability in
• Resource friendly production sourcing countries
• Climate change • Lobbying (India)
E P
Legal Economic
• Covid-19
• Duty of documentation L PESTLE E • Low buying power in many
• Patent infringements countries
• Rising labor costs in China which is
T S one of the main supplier countries
Technical Social
• Shoes made of plastic • Social media gains importance

• New materials • Brand Ambassadors
• Smart shoes • Health consciousness
11.05.2021 Source: Pestle Analysis Concept Paper – AC, LH, LH, IP 46

Sports garment and footwear industry is constantly exposed to a multitude of changes and new trends
Branchenanalyse – PESTEL
47
Rising salary level in China and COVID-19 crisis put pressure on the costs of Puma, while the price strategy fails in countries with lower income level and begets pressure on prices
Industry analysis – PESTLE: Economic factors
• Puma’s brand image appeals more to • Salary level in manufacturing sector • Sales dropped by -30.7% in the
people with high incomes is one of the highest in China second quarter of 2020 due to the
COVID-19 crisis
• Puma products pricier than the average • Reduction in the working-age
sportswear items population because of aging • Closed stores due to lockdown
• PUMA products as a status symbol • Higher discounts on products,
• Tremendous increase in labor
provisions for returns, negative
• Opportunity costs in countries with lower productivity
currency effects
income levels, since people can’t afford it • Cost pressure on Puma to keep costs • Cost pressure on Puma due to high
• Price pressure on Puma in these countries low storage costs, rental and labour costs
Price
Cost Pressure
Pressure
11.05.2021 Source: Reuters; Pestle Analysis Concept Paper – AC, LH, LH, IP 48
Rising salary level in China and COVID-19 crisis put pressure on the costs of Puma, while the price strategy fails in countries with lower income level and begets pressure on prices
Branchenanalyse – PESTEL: wirtschaftliche Faktoren
49
Rising health consciousness and importance of Social media boost Puma’s Social Media concept with famous brand ambassadors
Industry analysis – PESTLE: Social factors

• Day and age of the internet and
social media
• Everyone is up to date with Puma’s
online presence via Social Media
• People are more cautious of
• High marketing reach due to Social
their health and well-being
Media
while pondering on their
lifestyles
• Celebrity endorsements
• Concept of maintaining a fit Health
consciousness in order to become a
body is gaining importance
increases sensation
• COVID-19 boosts this effect
Puma as the star • Brand ambassadors such
• Sportswear gains importance of Social Media as Usain Bolt or Pamela
with famous brand Reif
ambassadors
• People are bound to
appreciate the brand for
its charisma

Rising health consciousness and importance of Social media boost Puma’s Social Media concept with famous brand ambassadors
Branchenanalyse – PESTEL: sozio-kulturelle Faktoren
51
Puma as a pioneer when it comes to embracing eco-services within its production
Industry analysis – PESTLE: Environmental factors
- Puma uses sustainable raw materials to combat climate change

- Recycled paper and cardboard for shoe packaging
- Less harmful materials such as BCI cotton or blue sign polyester
- Launch incycle basket shoes and biodegradable cotton t-shirts

- cause 31% less environmental impact than the usual products
Puma became one of the first sport fashion companies worldwide to embrace eco
services for the production of its products

Puma as a pioneer when it comes to embracing eco-services within its production
Branchenanalyse – PESTEL: ökologische Faktoren
53
Gliederung
54
Adidas as a market leader focuses more on functionality of the products and is more successful in the Asia/Pacific region than Puma
Competitor Analysis – Key information Adidas

Sales of Adidas in 2019:
Headquarter: Herzogenaurach
Founded: 1949
Employees: 60,000 Americas
Presence: Global 29% EMEA
Asia/
Industry: Apparel and sports equipment 26%
Pacific
Target Groups: Women, men, kids 34%
CEO: Kasper Rorsted
Product categories
Apparel Footwear Accessories Fitness Apps
Adidas offers more fitness apps and accessories, boasts higher sales and has highest sales in the Asian/Pacific region
11.05.2021 Source: Adidas, Statista Concept Paper – AC, LH, LH, IP 55

Adidas as a market leader focuses more on functionality of the products and is more successful in the Asia/Pacific region than Puma
Wettbewerberanalyse – Schlüsselinformationen Adidas
56
The overriding mission of Adidas is to be the best sports company in the world with similar strategic aims as Puma
Competitor Analysis – Strategy Adidas
Mission
TO BE THE BEST SPORTS COMPANY IN THE WORLD
Strategy: creating the new speed, cities and open source

3Cs: creativity, collaboration, confidence
Focus: on consumers to achieve brand leadership by utilizing creator archetypes
Women: focus on women to augment market segment
Marketing: create innovative and inspiring marketing content by utilizing promotion partnerships
Sustainability: reduce CO2 emissions and waste, sell more shoes made of ocean plastic, sustainable cotton sourcing
Adidas has similar strategic aims regarding sustainability, women and celebrity endorsement
11.05.2021 Source: Adidas Concept Paper – AC, LH, LH, IP 57

The overriding mission of Adidas is to be the best sports company in the world with similar strategic aims as Puma
Wettbewerberanalyse – Strategie Adidas
58
Although Reebok has been a subsidiary of Adidas since 2005, it operates under its separate brand name on a global scale
Competitor Analysis – Key information Reebok

Sales of Reebok in 2019:
Headquarter: Boston, USA

Founded: 1895
Employees: 8,000 Americas
Presence: Global 37,5% EMEA
26,9% Asia/
Industry: Apparel and sports equipment Pacific
16,9%
Target Groups: Women, men, kids
CEO: Matt O’Toole
Product categories
Apparel Footwear Accessories Fitness App
Reebok focuses on blending fitness and lifestyle looks to create the new uniform of fitness for consumers
11.05.2021 Source: Reebok, Adidas-Group, Statista Concept Paper – AC, LH, LH, IP 59
Although Reebok has been a subsidiary of Adidas since 2005, it operates under its separate brand name on a global scale
Wettbewerberanalyse – Schlüsselinformationen Reebok
60
The overarching mission of Reebok is to be the best fitness brand in the world
Competitor Analysis – Strategy Reebok
Mission
TO BE THE BEST FITNESS BRAND IN THE WORLD
Strategy: change the way people perceive, define and experience fitness
3Cs: creativity, collaboration, confidence
Focus: on consumers through distinction, relevance and authenticity
Women: focus on women to augment market segment
Marketing: stand out from the competition by creating unique marketing campaigns
Sustainability: use plant-based materials, at least 30% recycled materials and no virgin polyester
Reebok pursues similar aims as Puma; however, Reebok places more value on marketing campaigns in the realm of fitness and aerobic,
rather than sponsorships
11.05.2021 Source: Adidas-Group Concept Paper – AC, LH, LH, IP 61

The overarching mission of Reebok is to be the best fitness brand in the world
Wettbewerberanalyse – Strategie Reebok
62
Puma and its competitors are all active in the same market segment; Puma has to differentiate its strategy to be successful
Competitor Analysis – Comparison
Criteria Puma Adidas Reebok
Focus Fashion and women Functionality and streetwear Fitness and style
Price range Medium to high Medium to high Medium
Product variety High Very High Medium
Product quality
Target groups Women, men, kids Women, men, kids Women, men, kids
Distribution channels Omni-Channel-Strategy Omni-Channel-Strategy Omni-Channel-Strategy
Fitness apps 1 3 1
Celebrity endorsement High Very high Medium
R&D expenditure (2019) 61,7 mil. € 152 mil. €

Puma and its competitors are all active in the same market segment; Puma has to differentiate its strategy to be successful
Wettbewerberanalyse – Vergleich
64
Puma‘s sponsorship portfolio covers a plethora of different sports realms; however, Adidas boasts the most successful sponsorships
Competitor Analysis – Sponsorship Portfolio
Type of sport Puma Adidas Reebok

A host of national teams and clubs Top international clubs/players A bevy of international clubs, teams and
Soccer (Neymar, Borussia Dortmund) (Real Madrid, Lionel Messi) players (Liverpool F.C.)
Well decorated american players MVP of the 2019/20 season Well decorated players (JJ Watt)
American Football (Jamaal Charles) (Patrick Mahomes)
Baseball Well decorated players Well decorated players Well decorated organization (MLB)
Different clubs and players Highly decorated players (Damian Lillard) Highly decorated players (Allen Inverson)
Basketball (Brose Bamberg)
Golf Highly decorated players (Jonas Blixt) Highly decorated players (Dustin Johnson) -
Boxing Well decorated boxer (Miguel Cotto) Well decorated boxer (Arthur Abrahan) Highly decorated boxer (Conor McGregor)
Highly decorated teams (Red Bull Well decorated drivers (Fernando Alonso) Motorsports inspired shoe campaign
Motorsports Racing, Lewis Hamilton)
Highly decorated national teams and
Volleyball players
A plethora of national teams, -
associations, clubs & athletes
Highly decorated athletes and
Track and field national teams (Usaine Bolt)
Different national teams and individual -
athletes
Well known celebrities (Rihanna, Kylie Well known celebrities Well known celebrities (Ariana Grande, 50
Non-athletic Jenner, Jay-Z, Dua Lipa, Selena Gomez) (Justin Bieber, Beyoncé, Kanye West) Cent, Gigi Hadid)
11.05.2021 Concept Paper – AC, LH, LH, IP 65

Puma‘s sponsorship portfolio covers a plethora of different sports realms; however, Adidas boasts the most successful sponsorships
Wettbewerberanalyse – Sponsoring-Portfolio
66
Adidas as the market leader enjoys a particularly high brand value and global presence; solely in terms of quality, variety and sustainability Adidas is modest
Competitor Analysis – VRINO Analysis of Adidas
Physical &
Intangible
Capabilities
V R I N O Score
Distinctive/
Threshold
Brand Value 9 9 9 9 9 45 Distinctive
Product Variety 9 8 8 6 8 39 Distinctive
Product Quality 8 6 6 6 8 34 Threshold

Marketing
9 8 7 8 9 41 Distinctive
Competence
Innovation 9 8 6 6 8 37 Distinctive
Sustainability 8 7 6 6 8 35 Distinctive
Global Presence 10 9 9 8 10 46 Distinctive

Adidas as the market leader enjoys a particularly high brand value and global presence; solely in terms of quality, variety and sustainability Adidas is modest
Wettbewerberanalyse – VRINO Analyse Adidas
68
Reebok is lacking behind both, Adidas and Puma – however, the brand is well-known worldwide and boasts a good quality
Competitor Analysis – VRINO Analysis of Reebok
Physical &
Intangible
Capabilities
V R I N O Score
Distinctive/
Threshold
Brand Value 6 5 5 5 7 28 Threshold
Product Variety 7 5 5 4 7 28 Threshold
Product Quality 8 6 4 4 7 29 Threshold

Marketing
5 5 4 3 5 22 Threshold
Competence
Innovation 5 4 4 3 4 20 Threshold
Sustainability 3 3 3 2 3 14 Threshold
Global Presence 6 5 4 5 5 25 Threshold

Reebok is lacking behind both, Adidas and Puma – however, the brand is well-known worldwide and boasts a good quality
Wettbewerberanalyse – VRINO Analyse Reebok
70
Puma enjoys a high brand value and a large range of innovative products; nevertheless, the products are substitutable
Competitor Analysis – VRINO Analysis of Puma
Physical &
Intangible
Capabilities
V R I N O Score
Distinctive/
Threshold
Brand Value 8 7 7 5 8 35 Distinctive
Product Variety 8 6 5 4 7 30 Threshold
Product Quality 9 6 7 5 8 35 Distinctive

Marketing
9 7 6 9 9 40 Distinctive
Competence
Innovation 7 8 6 7 9 37 Distinctive
Sustainability 10 8 8 6 9 41 Distinctive
Global Presence 8 8 7 7 8 40 Distinctive

Reebok is lacking behind both, xxxxx
Wettbewerberanalyse – VRINO Analyse Puma
72
Adidas’ position as market leader is clearly demonstrated; however, Puma is highly competitive in its core capabilities
Competitor Analysis – VRINO Summary
Puma Adidas Reebok • Adidas boasts the highest brand value, product
Brand value variety, price strategy and global presence
50
Global presence Product variety
• Adidas position as market leader is represented
• Puma profits from its sustainability strategy,
product quality and marketing competence
with brand ambassadors
Price range 0 Product quality • Reebok compensates for its lower brand value
with a prominent price strategy and a large
range of qualitative products
Sustainability Marketing competence

 Puma is positioned behind Adidas; however, its
Innovation
enormous brand value outcompetes Reebok by far
11.05.2021 Source: Statista, Forbes Concept Paper – AC, LH, LH, IP 73

Adidas’ position as market leader is clearly demonstrated; however, Puma is highly competitive in its core capabilities
Wettbewerberanalyse – VRINO Zusammenfassung
74
Puma is competing with Reebok in the realm of a fit and fashionable lifestyle
Competitor Analysis – Comparison
High Quality Brand value (in Million US-dollars)

12000
10000
Functionality
8000
Lifestyle
6000
4000
2000
0
2019
Puma Adidas Reebok

Low Quality
• Adidas boasts by far the highest brand value and Reebok the lowest
• Puma is best in providing products suited for a fit and fashionable lifestyle and competes with Reebok
• Reebok is positioned between fitness and fashion, trying to combine functional innovation and style
• All three brands launch qualitative products
11.05.2021 Source: Statista, Forbes Concept Paper – AC, LH, LH, IP 75

Puma is competing with Reebok in the realm of a fit and fashionable lifestyle
Wettbewerberanalyse – Vergleich
76
Gliederung
77
Puma can overcome its weaknesses and threats by capitalizing on the sustainability and fitness-lifestyle trend and by utilizing its global marketing presence
Evaluation – SWOT Analysis
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• Good marketing • Lack of exclusive • Growth potential in the • Vulnerable to
presence with brand product collections global market, the economic and
ambassadors and • Price strategy is neither women segment and political factors
celebrity endorsement covering all segments the fitness-lifestyle • Competition from
• nor outstanding industry larger brands and low-
Global presence in key
sports performance and enough to compete • Sustainability trend price competitors
sport style accounts with the market leader • Mounting health • Slow fashion trend
• Investments in • Low focus on individual consciousness • Increasing threat from
qualitative products, customer experience • Increasing importance counterfeit products
innovation, technology and service of social media to bind
and sustainability customers and enhance
• High reputation and marketing reach
brand value

Puma can overcome its weaknesses and threats by capitalizing on the sustainability and fitness-lifestyle trend and by utilizing its global marketing presence
Evaluation – SWOT Analyse
79
Puma can increase its market share and become the fastest fashion brand by leveraging on
the core capabilities and opportunities
Evaluation – TOWS Analysis
Internal Analysis
SWOT-Matrix
Strengths Weaknesses
• Boost individual and more personal

• Puma should focus on its core capabilities approach by utilizing social media
that correspond with the trends in • Work on price strategy with limited and
Opportunities sustainability, health consciousness and fit unique product lines and editions to
and fashionable lifestyle to strengthen its increase the brand value
market position • Establish a low-price section to serve the
global market
External Analysis
• Investments into R&D to stay up-to-date and

• Differentiate from the competition by
Threats outperform other competitors improving the price strategy, the product
• Focus on sustainable production to forestall
offer and an individual customer service
potential political regulations

Puma can increase its market share and become the fastest fashion brand by leveraging on the core capabilities and opportunities
Evaluation – TOWS Analyse
81
Puma x Off-White collaboration, PumAwareness, Puma East and global Pamela Reif campaigns represent possible strategic directions
Recommendations for strategic decisions
Global marketing campaign focusing on sustainable

1 products presented by brand ambassadors that are well
known for their sustainable lifestyle as Pamela Reif
2 Launch of exclusive and limited collections starting with a

high-price Puma x Off-White collaboration
3 Reach for the lower price segment by establishing a

subbrand Puma East in the Asia-Pacific Region
Found the organization PumAwareness to boost sustainable

4 production and to foster political environmental regulations

Empfehlungen für strategische Entscheidungen
83
Pam x Puma Collection promotion on a global scale to encourage awareness among consumers and boost a more transparent, authentic and sustainable brand image
Recommendations for strategic decisions – Global Sustainability Campaign with Pamela Reif
Communicate 10FOR25 targets

transparently
+ = and
captivating
to consumers
Social Media Presence TV Advertisement Newsletter and Print Catalogue
Sustainability
Pam x Puma
puma.com/sustainability
 Global marketing campaign on sustainability presented by Pamela Reif boosts authenticity and sustainability image of Puma

Pam x Puma Collection promotion on a global scale to encourage awareness among consumers and boost a more transparent, authentic and sustainable brand image
Empfehlungen für strategische Entscheidungen - Globale Nachhaltigkeitskampagne mit Pamela Reif
85
Puma x Off-White collaboration in order to offer high-price and exclusive products and be on eye-level with fashion collaborations like Adidas Yeezy
Recommendations for strategic decisions – Puma x Off-White collaboration
• Launch of exclusive and limited collections of the Puma x

Off-White collaboration
• Only one collection per year
• Customers need to subscribe to mail-newsletter in order

to be up-to-date for further news concerning the launch
of this collection
 Target: exclusive and limited editions that are on eye-

level with other fashion collaborations like Adidas Yeezy

Puma x Off-White collaboration in order to offer high-price and exclusive products and be on eye-level with fashion collaborations like Adidas Yeezy
Empfehlungen für strategische Entscheidungen - Puma x Off-White Kollaboration
87
Puma East subbrand in the Asia-Pacific Region in order to reach for the lower price segment
Recommendations for strategic decisions – Subbrand Puma East in the Asia-Pacific Region
• Launch of Puma East, a subbrand in the Asia-Pacific

region
• Affordable prices reaching lower social strata
• Use of social, content and influencer marketing

including sponsorships and event spendings to
improve Puma‘s performance in the Asia-Pacific region
• Availability not only online, but also in local

hypermarkets and sportswear stores
Subbrand Puma East in the Asia-Pacific region boosts Puma‘s

global performance by reaching lower social strata

Puma East subbrand in the Asia-Pacific Region in order to reach for the lower price segment
Empfehlungen für strategische Entscheidungen - Untermarke Puma East im asiatisch-pazifischen Raum
89
By founding the organization PumAwareness Puma can raise awareness for sustainability and support its own sustainable production
Recommendations for strategic decisions – Organization PumAwareness
• Foundation of the organization PumAwareness
„Als einer von PUMAs Kernwerten ist das • Raise awareness for sustainability – social and
Thema Nachhaltigkeit fest in unserer
Organisation PumAwareness verankert.“ environmental
Björn Gulden CEO
• Used as positive marketing and for direclty
PumAwareness addressing sustainably oriented customer
segments
• Prevent the threat of political regulations and

go with the slow fashion trend
Organization PumAwareness to address the topic of sustainability and to work more in the realm of
sustainability

By founding the organization PumAwareness Puma can raise awareness for sustainability and support its own sustainable production
Empfehlungen für strategische Entscheidungen – Organisation PumAwareness
91
Recommendations for strategic decisions
Pamela Reif
+ Improved sustainability image, authenticity and global awareness
1 - Mainly social media presence, dependency and selected target group
Puma x Off-White
+ High market potential of the exclusive luxury industry
2 - Neglection of low income countries, Puma only as a status symbol
Puma East
+ Affordable prices for low-income customers, supports Puma‘s presence in Asia
3 - Very expensive
PumAwareness
4 + Improved sustainability image, creation of awareness, elimination of risks
- High effort, questionable power

Empfehlungen für strategische Entscheidungen
93
Vielen Dank!

9
4
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PUMA Needs to Focus on Sustainability, Health Trends and Fashion to Differentiate from Rivals

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PUMA Needs to Focus on Sustainability, Health Trends and Fashion to Differentiate from Rivals

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Strategie

2. Fakten und aktuelle Unternehmensstrategie

3. Markt- und Branchenanalyse

4. Interne Faktoren und Wettbewerberanalyse

5. Schlussfolgerungen und Empfehlungen

2. Fakten und aktuelle Unternehmensstrategie

3. Markt- und Branchenanalyse

4. Interne Faktoren und Wettbewerberanalyse

5. Schlussfolgerungen und Empfehlungen

Public company Sales of 2019

Target groups are men, women and children 46%

Apparel Footwear Accessories

Björn Gulden as CEO

Die wichtigsten Fakten

The brothers separated

1919 1948 1950 1958 1967 1998 2013 2015

The brothers Rudolf and

11.05.2021 Source: 1) Statista 2) finbox.com Concept Paper – AC, LH, LH, IP 9

Integrated Cascade of Strategic Choices

Integrierte Kaskade von strategischen Entscheidungen

Integrated Cascade of Strategic Choices – What is Puma´s winning aspiration?

OUR VISION OUR MISSION

11.05.2021 Source: Puma Concept Paper – AC, LH, LH, IP 13

Shoes Clothing Accessories Sports Puma Brands

COBRA PUMA GOLF

11.05.2021 Source: Puma Concept Paper – AC, LH, LH, IP 15

Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Produkttypen

Puma products are made for…

11.05.2021 Source: 1) Puma 2) annual-report-2017.puma.com Concept Paper – AC, LH, LH, IP 17

Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Kundensegment

Carlo – Maria – David – Julia –

11.05.2021 Source: Puma Concept Paper – AC, LH, LH, IP 19

Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Kundensegment

Integrated Cascade of Strategic Choices – Where will Puma play? - Geography

Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Standorte

Worldwide turnover of Puma in 2019, by distribution channel Omni-Channel Distribution Strategy

Product Sales Mix Channel Mix Regional Mix

11.05.2021 Source: 1) Statista 2) annual-report-2017.puma.com Concept Paper – AC, LH, LH, IP 23

Integrierte Kaskade von strategischen Entscheidungen – Wo wird Puma spielen? - Distribution

• Puma is transparent about

11.05.2021 Source: 1) Statista 2) Statista Concept Paper – AC, LH, LH, IP 25

11.05.2021 Source: torrens.edu.au Concept Paper – AC, LH, LH, IP 27

• Puma increases brand awareness by

 Wide range to reach all customer segments

11.05.2021 Source: 1) Puma 2) opendorse.com Concept Paper – AC, LH, LH, IP 29

11.05.2021 Source: Puma Concept Paper – AC, LH, LH, IP 31

2. Fakten und aktuelle Unternehmensstrategie

3. Markt- und Branchenanalyse

4. Interne Faktoren und Wettbewerberanalyse

5. Schlussfolgerungen und Empfehlungen

Industry analysis – Porter’s 5 Forces: Rivalry among existing firms

Bargaining Bargaining • Focus on product quality, marketing and operational efficiency

11.05.2021 Source: Statista Concept Paper – AC, LH, LH, IP 34

Branchenanalyse – Porter‘s 5 Forces: Konkurrenzkampf zwischen bestehenden Firmen

Industry analysis – Porter’s 5 Forces: Threats of substitute products

Threats of Threats of 175

11.05.2021 Source: Statista Concept Paper – AC, LH, LH, IP 36

Branchenanalyse – Porter‘s 5 Forces: Bedrohung durch Ersatzprodukte

Industry analysis – Porter’s 5 Forces: Bargaining power of suppliers

Rivalry among Puma’s Supplier Share by Region • Small business size of

11.05.2021 Source: Statista Concept Paper – AC, LH, LH, IP 38

Branchenanalyse – Porter‘s 5 Forces: Verhandlungsmacht der Lieferanten