History About The Strategy Of Puma Marketing Essay

INTRODUCTION:

Marketing Strategy:

A marketing strategy defines objectives and describes the way you’re going to satisfy customers in your chosen markets. It does not have to be written down but it is easier to communicate to outsiders, like your bank manager or other investors, when it is.

A set of strategies found quite commonly in smaller businesses are growth strategies. One way to look at strategies to grow your business is through the way you will use products and markets or customers.

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The marketing concept of building an organization around the profitable satisfaction of customers’ needs has helped firms to achieve success in high-growth, moderately competitive markets. However, to be successful in markets in which economic growth has levelled and in which there exist many competition who follow the marketing concept, a well-developed marketing strategy is required. Such a strategy considers a portfolio of products and takes into account the anticipated moves of competitors in the market.

Contents used to find out the strategy of PUMA are Current Marketing Strategy and Current Financial position. The other tools used are Porter’s 5 forces for the external environment. SWOT analysis for the internal environment. This report also looks into the marketing mix of puma.

History of PUMA:

The establishment of puma took place in 1948 by Rudolf Dassler and it became a published company in 1986. Puma’s head-quarters are in Germany.

Company profile:

Puma distributes its products in more than 120 countries, employs more than 9000 people and generates revenue of 2.5 million dollars. The present CEO and Chairman of PUMA is Jochen Zertz. PUMA is the main producer of enthusiast driving shoes and race suits. They are prime producers in both Formula 1 and NASCAR especially. PUMA has partnership with Ferrari and BMW.

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MISSION STATEMENT:

-PUMA has the long-term of becoming the most desirable sport life company.

-To be the world most desired brand in the sportswear.

-PUMA focuses on sports segments and accessories.

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PUMA AS A BRAND:

PUMA is committed to working in ways that contribute to the world by supporting creativity, safe sustainability and peace and by staying true to the value of being fair, honest, positive and creative in decision made and action taken.

BRAND PERSONALITY

-Passion

-Openness

-Self-belief

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-Entrepreneurship

PUMA’S Product Segment:

Foot ware: Custom made shoes, Sports shoe, and Family shoes.

Apparels: T-Shirts, Tracks, Boxers.

Accessories: Gloves, Helmets, Water Bottles, Sun Glasses.

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PUMA’S MARKETING STRATEGY:

-Phase I [1993]

World-wide organizational re-structure to increase profitability.

-Phase II [1996]

Improving brand equity.

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-Phase III [2002]

Exploring brand potential by increasing desirability of products.

-Phase IV [2006]

Long term mission of becoming the most desirable sports life style brand.

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-Phase V [2008]

Nouveaux Puma [Going Green]

PUMA’S STRATEGY:

Vision 2008-2013

To become the most desirable sport life style brand.

Uphold the spirit, Image and values of puma towards the sustainable pollution free world of tomorrow.

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-Increase of brand awareness.

-create a PUMA family.

CORPORATE STRATEGY:

This long-term strategic objective is to be achieved thought:

-Regional Expansion.

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-Expansion of product categories.

-Expansion with non-PUMA brands.

STRATERGY:

-Have a slogan.

-Co-Operation with William MC Donough and Michael Braungart to implement sustainability.

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-Involve customer in design.

STRATEGY GOALS:

-Enter new niche market that represents PUMA. [Climbing]

-Design new “GREEN PRODUCT-LINE”

-Create customisation opportunities [web site]

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BRAND STRATERGY:

-Bringing distinctive and a global outlook by blending influences of sports, lifestyle and fashion.

-Maintaining vigilant watch over distribution channels.

-Solid guidance and strict alertness for licensee.

PROMOTIONAL STRATEGY:

-PUMA sponsors many national football teams.

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-It has also sponsored and created the clothing for several noted professional football teams.

-It also sponsors football players.

-It also sponsors cricketers. [IPL teams]

-PUMA supply equipment’s to four National Rugby league teams.

MARKETING MIX:

PRODUCT

PRICE

PLACE

PROMOTION

1. PRODUCT:

-It has a wide range of products such as foot ware, sportswear, sports goods, and fashion accessories.

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-PUMA group owns PUMA, Tretorn, and Hussein Chalayan.

-Black label includes collaborating with renowned designers such as Alexander Mequean, Yasuhiro Mihara and Rossi.

2. PRICE:

-PUMA’S pricing is designed to be competitive to the other fashion shoe retailers. The pricing is based on the basis of premium segment as target customers. PUMA as a brand commands high premium.

3. PLACE:

-PUMA shoes are distributed to multi-brand store front and exclusive PUMA stores across countries. While these necessities a second trip for the countries to come and pick up the shoes, it allows PUMA to offer a much wider selection than any of the companies.

4. PROMOTION:

-Location, targeted advertising in the newspaper and strategic alliances serves as the foundation of PUMA advertising and promotion effort. The athletes and other famous sports personalities are always taken as brand ambassadors. They form the prime building blocks of their position strategy.

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5. RETAIL:

PUMA is continuously focussing 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, fully integrate the retail space into the broader communication mix and finally maintain its position that retail should function simultaneously as a tool to generate profitable growth and brand equity.

SWOT ANALYSIS:

Strength

-PUMA is very competitive organization.

-Financial growth is phenomenal.

-More diversified from its competition.

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-Wide array of shoe-wear.

-Strategy acquisition with reputed companies.

-Brand stands for quality, latest technology and prestige.

-Global Brand.

-PUMA 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.

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Weakness

-Less of promotional activities done by the company and not much of advertisement.

-They have diversified range of sport product but income of the business heavily depends upon its share of foot ware market.

-Retail sector is very price sensitive. However, most of its income is derived from selling into retailers.

-Profit margin tends to squeeze as retailers try to pass some of the low price competition pressure onto PUMA.

Opportunities

-Open more stores.

-Product development.

-Strong global recognition.

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-Expand in markets which have more disposable income.

-Participate in global marketing events like World cup, Olympics, etc.

Threats

-Harsh competition and to keep-up with the competitions penetrating effort will cost a lot of money and pressure on marketing and research and development [R & D].

-Short PLC play important role in the ROI in a particular product line.

-Weakling markets may be a serious threat.

-Puma exposed to international trade. Fluctuation in currency affects cost and profit margin of the company.

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PORTERS 5 FORCES

-Many provide on market.

-Build up healthy brand image.

-High competition.

-Per manner threat. [Same sector]

-Fragmented market.

-Big retail chain.

-Own distribution.

-Vulnerable sport market. [Asia]

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-Own retail store network.

THE COMPETATORS:

Nike:

-Number one sports brand in the world.

-U.S based administrative activities and design and product innovation.

-Sub brands like “Tiger Woods” or “Michel Jordan”

Addidas:

-Focus on core sports like soccer, tennis, athletics and skiing.

-Design and marketing departments 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, foot ware, watches, fragrances and writing tools.

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-Experienced an unexpected growth rate.

-Brand is still situated in Italy.

Draw Backs of PUMA:

-Very low brand awareness.

-Market share is low.

-Advertising is very low.

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-No penetration into the market.

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