Formative Research on Puma

Puma is one of the world’s leading sports brands. For 70 years, Puma has established a
history as creator of fast product designs for athletes in almost every sport. In light of their
Forever Faster mission, Puma seeks to provide heat and style to sports in a way to elevate their
brand to the next level. Despite being in the shadows and coming last to brands such as Adidas
and Nike, Puma executes a turnaround strategy to achieve their goals. Each aspect of this
formative research will contribute to specific objectives related to the rebranding of Puma.

The situation Puma faces is recognition, which has led to a loss in revenue. Puma made
its debut in 1950 at the first post-war football match between West Germany and Switzerland.
However, it wasn’t until NBA icon Walt “Clyde” Frazier endorsed the Puma Suede, did the
brand become mainstream. Throughout the 70s break-dancers, and artists such as Grandmaster
Flash and UTFO wore them faithfully. Problems began to arise in the 80s as competitors such as
Adidas began to sponsor rap group Run-D.M.C. Puma found it hard to keep up with trends then
and as they do now.

As an organization Puma, holds many strengths and weakness. After analyzing the
organization, we now have an understanding of how to help the brand grow. We believe Puma
faces recognition issues because it lacks valued relations. Many times, when big brands become
large names, they typically used cultural icons, and status figures to market their product. This is
a weakness Puma has struggled with in past times. Brands like Nike and Adidas use music artist,
influencers, visual artist & many more creatives. Influencing markets Puma lacks in. However,
this is something the brands seem to be changing, as it grows. Due to living in the age of
influencer marketing, we believe Puma can fix this issue simply, by continuing to do projects
with rising brands, influencers & artist.

By using influencers and opinion leaders, Puma will be able to reach mass publics and
expand their customers. These influencers and opinion leaders can vary from music artist, public
speakers, athletes, and actors. Allowing Puma to gain these types of brand ambassadors and
sponsors will ultimately lead to an increase in the value of Puma, as well as the sales
(marketing).

The opportunities Puma should capitalize on are social media. Puma has made a
significant effort in expanding its influence in the fashion and lifestyle realm, through
collaborations with KITH, Solange Knowles, Alexander McQueen, Va$htie, Brooklyn We Go
Hard, ALIFE and ICNY. As well as, appointing Rihanna as the new creative director for the
women’s department.

Threats Puma face are the competition and the edge they have in the urban market,
because Puma faces the challenge of appealing to more than the sports world. Their competitors
have a huge advantage. This is something the brand must work actively on if they wish to change
the general idea of the brand.