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PRESENTATION ON PUMA

BY:Shruti Upadhyay M.F. Tech III sem Gandhinagar

Introduction
Clothing Industry 1924 (registered in -1948) Rudolf Dassler Herzogenaurach , Germany Jochen Zeitz (CEO and chairman of the management board), Melody Harris-Jensbach (deputy CEO), Francois-Henri Pinault (Chairman of the supervisory board) Products Foot wear, Sportswear , Sports goods, Fashion accessories Revenue 2.461 billion (2009) Operating income192.4 million (2009) Profit128.2 million (2009) EmployeeApprox- 10,000 (end 2009) Main geographic areas-Europe, United States, Asia Official websitehttp://www.puma.com Industry Founded FoundersHeadquarterKay people

Company Profile
It was founded in 1924 and has head quarters in Germany . In 1948 , Adolf Dassler split from his brothers company , Adidas to form his own company called Puma. Puma is a large German multi national company which designs and develops athletic shoes, lifestyle footwear and other sports wear and accessories. The company also offers lines shoes and sports clothing, designed by Lamine Kouyate, Amy Garbers, and others.

Contd
It distributes its product in more than 120 countries, employs more than 9000 people and generates revenue of $2.5 millions. They sponsor many football teams all over the world and have a big involvement in terms of sponsorships in the football matches and players. Puma is partnered with several major national soccer leagues in countries such as Germany and Egypt.

Puma in India
June 2006, the first Puma Store opened in Chennai. Puma India closed 2007 with 14 exclusive stores, presence in hundred outlets and a Regional Office in Gurgaon (NCR). Within a short span of 2 years PUMA India has established itself as the most desirable sports lifestyle brand of the country. Currently, Rajiv Mehta is the Managing Director of Puma India, Bangalore, India.

Company History
1924: Rudolf Dassler and his brother Adolf start making sport shoes. 1948:Adolf Dassler split from his brothers company , Adidas to form his own company called Puma. 1951: Rudi registered the first version of the puma logo. 1958:Introduction of Puma's signature form strip at the FIFA World Cup in Sweden. 1974: Rudolf Dassler dies. His sons Armin and Gerd take over the company's management. 1986:Transformation into a stock corporation. 1993:At age 30 Jochen Zeitz was named chairman & CEO of puma AG . he shifted the production from Germany to Asia. 1994: The first profit since the companys IPO in 1986 is registered . 1998:Puma merges sports and fashion. The company starts a cooperation with designer Jil Sander . 1999:Puma becomes an official on-field supplier of the U.S. National Football League (NFL).

Contd
2000: Production of fireproof footwear in partnership with Porsche and Sparco. 2003: Majority shareholder Monarchy/Regency sells its shareholdings to a broad base of institutional investors. 2004: Collaborative partnership with world-renowned designer Philippe Starck . 2005: Total of 16.91% shareholding. 2006: Shoe collection in cooperation with Alexander McQueen. 2007:Brazilian football club will be the first to use the laser sewn technology. 2008: Melody Harris-Jensbach is appointed Deputy CEO; Designer and artist Hussein Chalayan becomes Creative Director. 2010: Signs two year deals to make the kits of Newcastle United, Motherwell, Hibernian & Burnley from the 201011 season.

Vision , Mission & Values


The Vision : We are committed to working in ways that contribute to the world by supporting creativity, sustainability and peace and by staying true to the values of being Fair, Honest, Positive and Creative in decisions made and actions taken. The mission: Puma has a long term mission of becoming the most desirable Sports life style company. Values Passion Openness Self Belief Entrepreneurship

Corporate Strategy
This long-term strategic objective is to be achieved through: Expansion of product categories Regional expansion Expansion with non-PUMA brands

Brand communication
Clean & Modern typography: letting the products speak for themselves. Refined color palette: Layout: Logo identity & placement -Master logo -Typography logo -Leaping cat logo -Super cat logo

Pumas Brand
Puma has master and sub brands. Master Brand Sport Lifestyle Sport Sub Brands-Nuala -96 Hours -Mihara -Starck

Retail
PUMA is continuously focusing on retail expansion and retail-specific knowledge through the opening of new stores. The new concept store demonstrates its efficacy for driving the brand and generating profits. PUMA will continue to create more excitement in its stores, expand its consumer base, and firmly maintain its position that retail should function simultaneously as a tool to generate profitable growth.

The PUMA Online Store


Site that markets the Puma brand, but is focused on selling its products directly to the consumer Contains an extensive online catalog, current news on Puma, employment opportunities, new items and an online shop Positive aspects - Interactive site; interactive online shopping for consumers from extensive online catalog; very user friendly site with easy navigation.

Products

Sports

Life style

Men

Women

Kids

Swimwear

Accessories

Fragrance

Sunglasses

Body wear

Socks

Price
Soccors The price points under this range start from around Rs. 2200 & maximum reaches out up to around Rs. 9500. Here the average price point is around Rs.5850. Running shoes: The price points under this range start from around Rs. 2200 & maximum reaches out up to around Rs. 6330. Here the average price point is around Rs.4265.

Revenue by produts

Consolidate net sell by apparel & footwear - 2008


Sales
Soccer Teamsp orts 33% Training basket ball Others

Sales
Tennis Sports life style Running

Training 3 %

23%

28%

Others 13%

Sportsp erforma nce 5%

Sports lifestyle 15%

% % % 8% 6%

SWOT Analysis
Strength Financial growth is phenomenal. More diversified than its competition. Wide array of shoe- wear. Brand stands for quality, latest technology and prestige. Increase in demand is the expected market trend Global brand Pumas top management is highly marketing oriented, and most of the key personnel come from marketing background. This is strength in this business because industry is market driven instead of product driven.

SWOT Analysis Contd


Weakness They have diversified range of spot products but income of the business heavily depends upon its share of footwear market. Retail sector is very price sensitive Profit margins tend to squeezed as retailer try to pass some of the low price competition pressure onto Puma. Young consumers only

SWOT Analysis Contd


Opportunity Open more stores !!! Product development. Strong global recognition. Expand in markets which has more disposable income. Participate in global marketing events like world cup. Olympics, etc. Being more focused on youth, Puma is certainly a fashion brand.

SWOT Analysis Contd


Threats Harsh competition Weaking markets may be serious threat. Puma exposed to international trade. Fluctuation in currency affects costs and profits margin of the company. Retail sector is becoming very competitive and consumers are highly price sensitive. So the consumer can compare the prices for exactly same item for the best deal and this is potential external threat to Puma

Industry Analysis
The sport industry is now estimated to be worth $500 billion worldwide, but recent growth belong to a new rapidly developing markets. These markets are located in Brazil, Russia, India, China, Central Asia, Eastern Europe, the Far East and Africa. Regional hubs of Puma are: Germany , Austria, Hong kong, USA, Australia A number of new centres around the world are playing an ever more visible role in global sport. In the market of sport products there are three main players: Nike, Adidas and PUMA.

Industry Analysis contd


Puma has high brand awareness in most European countries Netherlands leading 93% Followed by Switzerland- 89% Germany with-83% Then Spain with-82% Poland & U.K. with 76% Italy with-56%

The Compititors
Nike Number one sports brand in the world US based: administrative activities & design and product innovation Sub brands like Tiger Woods or Michel Jordan ADDIDAS Focus on core sports like soccer, tennis, athletics and skiing 6 times the financial resources Design and marketing department are located in France and Germany PRADA Well known luxury brand 4 years ago Prada dared to step into the sport segment Focus on fashion and trends but their price strategy is still too high Diesel Major fashion brand including: sunglasses, footwear, watches, fragrances and writing tools Experienced an unexpected growth rate Brand is still situated in Italy (jeans production)

Promotion of Brand
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

Pumas Promotion Plan


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

Pumas Promotion Plan contd..


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

Pumas Promotion Plan contd..


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

Reference
www.puma.com http://www.wikipedia.org http://www.gotomanager.com/news/

Thank You For Your kind Attention