Casestudy of Puma Sample Essay

Introduction to Puma
Puma is one of the world’s taking Sport lifestyle companies. As an administration it designs and produces athleticss equipment. footwear. dress and accoutrements. Puma distributes its merchandises to “120 states. employs more than 11. 000 people worldwide and has central offices in Herzogenaurach in Germany. Boston. London and Hong Kong” ( about. cougar. com 2012 ) . Puma as an administration was founded in 1948 by a German adult male called Rudolf Dassler. who split from his brothers company which went on be known as Adidas after originally get downing out as “Gebruder Dassler Schuhfabrik” . The Puma group owns the trade names Puma. Cobra golf and Tretorn. this allows the administration to ramify into different markets and vie for market portion in different industries. Marketing Orientation

‘I make what I can sell’ ( Adcock et al. 2001 ) . This is the doctrine the orientation takes. following the administrations market research. Marketing orientation takes into consideration the clients and their rivals. The administrations look into several factors such as: * Identify the customer’s demands and wants. through market research * Develop their merchandises to run into the demands. through merchandise development * Decide on the monetary value for the clients

* Distribution. looking at the right clip to establish the merchandise into the market * Informing and carrying the clients to purchase the merchandise. through publicity

Figure 1.

Merchandise Orientation
Companies who are merchandise oriented focal point on forcing the gross revenues of the merchandises they sell the most. ‘It frequently involves fabricating merchandises in big measures in order to understate the costs of production. ’ ( Adcock et al. 2001 ) . Problems exist in this orientation. such as although the initial gross revenues may be really high due to a successful merchandise but are more likely to diminish rapidly. Another disadvantage is the unsated clients are difficult to delight as the merchandises are the same for the company. Companies who adopt merchandise orientation frequently find themselves switching towards gross revenues orientation when their merchandise gross revenues are worsening as they introduce aggregate advertisement and gross revenues runs. Gross saless Orientation

‘Sales orientation dictates that a concern must sharply advance its merchandises. ’ ( Adcock et al. 2001 ) . The company is looking to advance an already bing merchandise. it is up to the employees to happen possible clients for the merchandise and they will be aiming through publicity. Even though the clients are being targeted the merchandise still does non run into the clients demands and wants hence differing from client orientated selling. The chief disadvantage of the orientation is the fact that clients demands and wants are non considered so if clients don’t like to the merchandise gross revenues will be really limited. Puma Orientation

Cougars have adopted the selling orientation. placing their clients need and wants. Puma show that they use this orientation to great consequence as they created the ‘Sports lifestyle segment’ in the market. This section combined the engineering of athleticss apparels but incorporated into stylish apparels to have on on all occasions. ‘PUMA was non merely able to beef up its placement as a athletics lifestyle trade name. but created a whole new market by set uping the section athletics life style. ’ ( Neuber. 2011 ) . Puma has been really successful in run intoing the demands and wants of their professional clients. They have strong partnerships with jocks such as Usain Bolt. Michael Schumacher and Yaya Toure and sponsor many national football squads. When Michael Schumacher won his seven universe titles Puma were the supplier of his places and now are the largest supplier of rushing auto places. demoing that their merchandises have met the demands of the users and their market portion has grown.

The partnership with Ferrari and Michael Schumacher led to the company establishing manner merchandises in the ‘Sport Lifestyle’ section like trainers. caps and dark glassess. In the universe of football Puma has had success in their merchandises. they launched the first football boots with prison guard in he-man in 1952. run intoing the player’s demands of better quality boots and revolutionizing football. Puma has strong influence in the African market patronizing 13 football federations ; here they opened many of their advanced merchandises. First they created the sleeveless New Jersey in 2002 to assist maintain the Cameroon participants cool as they are playing in one of the hottest continents in the universe. Second they created the one piece kit the first of all time of its sort the Cameroon squad wore this for the 2004 African cup of states. It was greeted with contention nevertheless this was good for Puma as it brought them trade name consciousness. Puma continue to work closely with their clients in footings of run intoing their demands with high quality merchandises. Usain Bolt is another illustration ‘The Jamaican sprinter needed a various shoe that provided support for power. every bit good as soundness to keep his pes in topographic point around the bend. ’ ( Neuber. 2011 ) .

From Bolt’s needs they developed the Theseus II running shoe and he went on to interrupt the 100m and 200m records at the 2008 Olympics. Again in 2009 the Puma squad developed the shoe by looking at Bolts pace and pes signifier and altered the spikes to accommodate his manner. To get the better of the rivals in the market Puma attempt to make their merchandises with a sense of manner. they will utilize alone colorss. different stuffs and make new vesture types. Nike and Adidas are their chief rivals in the athletics section. to vie with them Puma usage Athlete indorsement and sole manners that merely their merchandises have. However in the Sport life style section Puma has other rivals like Prada Sport and Lacoste.

These rivals are already renowned in the universe of manner so Puma have to vie with them in merchandises such as eyewear and apparels. Pricing is one manner Puma compete frequently their merchandises will be cheaper than rivals nevertheless still high quality or they are more appealing with indorsement like Bolt or Ferrari. To summarize the market orientation Puma usage works efficaciously for them to derive association with professional jocks. with a record of bring forthing what they need to derive success. They distribute their merchandises to over 130 states around the universe. To keep being competitory they have utilised the Sport life style section to their advantage by concentrating on it. Pumas merchandises are frequently cheaper than their rivals. The competitory advantage/disadvantage of cougar.

Puma has many competitory advantages runing from the its selling schemes which have seen it go the most popular trade name in certain countries. but besides the sponsorship deals that it has. which has gone on to increase the exposure of the trade name around the universe. In the universe of sports. if non the Olympics. the most recognizable face has to be Usain Bolt. For the London 2012 Olympics he was seen as the posting male child. with the universes media focused on the 100 meters concluding which was watched by a record 2billion people. with 2billion besides watching Pumas merchandises being shown on show. This is one of the grounds Usain Bolt holds the most moneymaking contract in Puma history reported to be deserving ?12. 5million per twelvemonth with him backing both sportswear vesture for Puma every bit good as his ain line of Runing Shoes. The chief purpose for Puma engaging Usain Bolt was to utilize his repute around the universe and his media exposure to pull people to the trade name. and to turn their ain trade name around him.

His exposure would see gross revenues in countries that he promotes grow and exceed that of its challengers. Nike for illustration. which don’t have a jock to vie with Usain Bolt. Another advantage that Pumas holds is that it was the first major athleticss trade name to aim new and emerging markets and set up itself as a cardinal participant in the markets. These markets were largely in the Middle East and Africa. with the market portion being largely because of the national squads that they provide shirts for. Compared to other industries Puma sponsor the most successful national squads. which include Ivory Coast. Ghana. Togo and the Cameroon. with Puma ruling the market. The competitory advantage that this provides so is that with Puma patronizing the major squads and the most popular. the other major rivals do non hold a opportunity to hold the same influence on the market. Besides with gross revenues of replica national football shirts being the highest beginning of gross for football on the continent Puma are able to dominant and hold the largest per centum of entire gross from football ware than any other rival.

Before the last 10 old ages Puma was seen every bit merely a normal athleticss public presentation company. and as a consequence was get downing to worsen as they couldn’t compete with the two major participants in the market Nike and Adidas. with Puma being eight times smaller than Adidas by the last 1990’s. As a consequence of this and the hazard of the company fall ining. Puma began to separate itself as a company that focused on the Sports manner than that of Sports Performance. This proved to be a successful turnaround for the company as after ten old ages since altering their company focal point. they have continued to turn and now are merely three times smaller than Adidas. a major success for the company. The alteration involved Puma traveling off from merely the side of athleticss to traveling into other new markets such as music and manner. which besides saw the company diverse itself into new markets. but at the same clip divide itself out in the market from being merely another athleticss public presentation company. making a competitory advantage of being a company that offers something different. A major disadvantage of Puma is at that place advertisement and sponsorship is non on the same graduated table as that of Adidas and Nike.

The two major giants in the market pride themselves of being able to pull major athleticss for each single athletics. with Puma non being as competitory in making this. A illustration is that Adidas run a football boot run around the universe participant of the twelvemonth. with Lionel Messi being the face of both Television adverts and Poster boards to make this strong relation with Messi and the boot in inquiry. Similarly Nike have hired Cristiano Ronaldo as the face of their football run and once more have created a whole selling run around them both. Furthermore. even though the single participants may non be involved in selling runs both Adidas and Nike besides have many single boot trades with universe recognizable football players. with Puma merely concentrating on a much smaller minority of participants to hold boot trades with the most recognizable Cesc Fabregas and Sergio Aguero.

As a consequence this creates a major disadvantage for Puma because fan want to have on the boots that their graven images wear and as a consequence of this Adidas and Nike have become the two major dominants of the market with Puma fighting to catch-up. with boot gross revenues non every bit strong as the major two trade names and as a consequence are seen as the 2nd grade of rivals in the market with other trade names like Umbro. Another competitory disadvantage of Puma is that they are non involved in every bit many athleticss as Adidas and Nike. Example is that Puma patron either a nine or a jock in 14 different athleticss. which is considerable lower than Adidas who have sponsorship trades within 30 different athleticss. This is one of the grounds that Puma is non every bit much of a recognizable trade name as Adidas or Nike. with Puma being non really known in America because of the deficiency of engagement in American Sports. which is a major market section for athletics. This is besides one of the chief grounds that Puma doesn’t have the same gross figures near to Adidas and Nike because of the deficiency of variegation into the sum of athleticss.

SWOT Analysis
StrengthsThe fiscal place of Puma. More diversified than it’s competition. Puma’s trade name image stands for quality. the latest engineering and prestigiousness. Longer established than its competition and has been able to make a favourable trade name image. Marketing Driven. Globally recognised. Strong popularity in Africa compared to other brandsCelebrity indorsements e. g. Usain Bolt and Cesc FabregasFashionable in Youth Culture. The Success of the Italian National Team. Fastest Growth in Gross saless and Net incomes from Hip Hop and Skateboarding from 1988 and 2003. | WeaknessesNot as much advertizements as their competition. Income is to a great extent dependent upon its portion within the footwear market. Retail sector is monetary value sensitive. Focus is excessively narrow. Lack awareness amongst possible clients.

Not diversed in every bit many athleticss as major competitorsSlow updates of ProductsStock levels| OpportunitiesEstablishing themselves in the middle-east before Nike and Adidas. Product Development. Market Segment is poised for rapid growing. Potential to diversify into related market sections. Strong Global Brand Recognition. Global events can be utillised. Contracts with Italian Football Association untill after the 2014 Brazil World Cup. Sponsor all of the major African Nations football squads. | ThreatsEconomic lag could cut down demand of their goods. The Market is monetary value sensitive. The criterion of come ining into the Sports Industry. The Competition that Puma face. The exchange rate – worldwide gross revenues. | Marketing Mix

The traditional selling mix represents the strategic combination of four primary elements represented by the four Ps ( Chadwick 2007: 38 ) . These four Postscripts are known as Product. Place. Price and Promotion. An administration aims to make a point where an appropriate combination of the four elements is reached so that its selling scheme can be at its most effectual. The selling mix is basically the really foundation of selling. upon which the strong basicss and rules of selling as a topic are formulated. Merchandise:

Puma offers a broad scope of merchandises that centre on their subject of Sport life style. Puma’s purpose for their merchandises is to include Innovation. which “has been changeless throughout their history” ( about. cougar. com ) . a bad alone expression and aesthetic individuality. Their coveted consequence is that Puma create advanced merchandises that reflect top public presentation combined with typical and alone Puma signature design. Pumas trade name message is that they are a athletics lifestyle company and they want their merchandise scope to reflect that. The athletics lifestyle message basically means Puma have fused influences from athletics. lifestyle and manner and incorporated them into their merchandise scope. This is represented by a broad scope of merchandises that cover everything from featuring equipment to high terminal manner garments. The purpose of this is to promote possible clients to purchase into the trade name who are non basically large athletics lovers or fans. It besides encourages consumers to purchase and have on Puma merchandises when they are non playing athletics. for illustration a Puma leather jacket could be worn casually.

Another illustration of this. is black places that are sold by Puma could be used for concern usage. This market incursion scheme into lifestyle and manner markets is an advantage for Puma as it allows them to pull and construct upon their client base. Product quality and scope is besides a farther strength for Puma. The company has built up a broad scope of well-known and esteemed trade names. for illustration. the land floor of most Puma retail mercantile establishment shops sell wellknown trade names of aroma such as YSL and Gucci. This emphasises the degree of quality of Puma merchandises and raises client perceptual experience of the trade name to consumers who enter the shop. By selling goods from other trade names. it can make an association between the two trade names. When Puma design their merchandises they aim to convey “Joy” to its consumers. They believe this “Joy” is what will distinguish its merchandises from its rivals. as they don’t believe that they carry the same merchandise entreaty.

When Puma come to the design the designing phase of a certain merchandise. “the first inquiry that is asked is. where is the Joy? ” ( about. cougar. com 2012 ) . This allows them to do certain that every merchandise carry’s the Puma trade name message and solidifies their fined tuned market place of “Joy” . Having such a fined tuned market place of their merchandises is an advantage of their market scheme as it allows all of their merchandises to be designed and produced at high quality criterion. As a company. Puma offers an first-class scope of Sporting merchandises that the bulk of athlete’s and clients can utilize and profit from when either playing athletics or merely lifestyle usage. One disadvantage of their merchandise scope is that they don’t offer a immense sum of top of the scope merchandises designed for elect performing artists and jocks. This is a disadvantage because if for case there is a possible client who competes at a nice criterion ( county degree for illustration ) who is looking to purchase a piece of equipment in the Football boot market so they are improbable to take Puma over other somewhat bigger trade names who have a broader scope of top degree equipment. Monetary value:

Out of the four P’s of the Marketing Mix. Price is possibly the most of import to a successful selling mix for Puma. Price is alone to the other elements as it is the lone constituent that generates gross for the company. All the other mixes are costs to the administration. whereas monetary value will retrieve costs and make net incomes. Price is basically the procedure of finding what an administration will get in exchange for its goods and services. When sing Price. Puma will hold to see some of the functions and perceptual experiences of Price. For illustration Price is the value that is placed on a merchandise and that monetary value is the common currency of value to both marketer and client. Furthermore they will hold to see that Buyers may hold different perceptual experiences on monetary value compared to the company itself. The critical point for Puma when it comes to discussing Price is. Puma is non the most moderately priced topographic point to shop. their monetary values have to be kept with their stigmatization scheme.

They aim to sell high quality merchandises and charge consequently. They can afford to make this because their mark market is that of the middle-upper categories. which can afford to pay for high quality goods and stylish trade names. Charging for merchandises consequently to quality is a positive for Puma as it will promote client trueness. Due to the Chinese New Year. Puma provide 20 % off to their regular clients that purchase their merchandises. They besides provide price reduction on high unit purchases. If a client has purchased 4 merchandises in the span of one twelvemonth. on the fifth purchase. a 50-60 % price reduction is applied. This price reduction strategy attracts repeat usage and will turn the client attending towards the trade name in which they might exchange from purchasing a rivals merchandise. Which in bend. can profit Puma. When Puma monetary value at that place merchandises they frequently use the scheme of Premium Pricing. This pricing scheme involves utilizing a high monetary value where there is uniqueness about a certain merchandise. It is frequently used when a competitory advantage exists within the industry.

This scheme is besides linked with Market planing. where higher monetary values are set to new merchandises to ab initio plane the market. pulling the least monetary value sensitive section. Associating these two pricing schemes allows Puma to profit as it is“used to maximise net income in countries where clients are happy to pay more” ( smallbusiness. chron. com 2012 ) A negative of Pumas Pricing scheme is that of because there frequently high monetary value scheme some possible clients may non see that monetary value peers value. and make up one’s mind to purchase into the market in other trade names. This is an obvious negative for Puma as they will lose out on valuable gross as clients look to take their money elsewhere. A recommendation for Puma to repair this is to include more of a promotional pricing scheme for a batch of its merchandises. This sort of attack includes actions such as 25 % of for illustration or even BOGOF ( purchase one get one free ) .

This scheme would hopefully pull clients to the trade name and increase Puma’s market portion. Puma’s pricing placement of merchandises can be seen as a failing of its scheme. for case. if disbursement and general activity in the economic system is on a downswing. Puma can’t cut down its monetary value. Similarly. Puma can’t cut down its monetary values in the signifier of gross revenues publicities to vie with rivals every bit easy as other administrations can. The ground for this is that low monetary values and low gross revenues publicities would non be consistent with Puma’s trade name imagetherefore ; it would hold a negative consequence for the company. Topographic point:

Puma sell their goods in retail mercantile establishments. online and are now supplying information on their latest publicities and merchandises through the usage of nomadic phones to possible clients. through the usage of an app or a nomadic online shop. This will do Puma’s merchandises easy to entree and will pull more clients as people may non hold the clip to see retail store’s so they can utilize the nomadic site/app to see the merchandises and can happen out whether the merchandise can be purchased online. Having merchandises accessible to possible clients via a nomadic phone or other nomadic devices will guarantee that Puma are able to make the universe whether they have internet entree through the usage of computing machines or non. They have opened retail mercantile establishments in shopping promenades which attain changeless pes traffic. With plentifulness of people sing the shopping promenades in which Puma have opened retail mercantile establishments inside. it could convey possible clients in.

This is positive for Puma as they’re may non be another athleticss retail merchant inside of the shopping promenade so this will give them an advantage over their rivals. as consumers will be able to buy goods at that place and so without holding to shop online for rivals merchandises. If rivals already have a retail mercantile establishment within the shopping promenade. the Puma mercantile establishments will give them some competition. Puma have a big popularity in Africa. The trade name patrons many of the major African Nations football squads and usage Usain Bolt to spearhead many of the trade names advertizements. giving the trade name an association with the jock and the squads that it sponsors in Africa. With the celebrated jock being endorsed by Puma. it brings a batch of involvement from Africans every bit good as Usain Bolt fans from all over the universe. who will follow the merchandise lines of Puma. The 100m race in the 2012 London Olympics was viewed by more than 2 billion people to see Usain Bolt. who was have oning Puma merchandises.

Promoting Puma as a trade name is done in assorted ways.
Since they are already a reputable trade name within the market. the company’s fundss are non a job. So in order to make a strong trade name image. Puma endorse top famous persons and sportswoman to advance their schemes. Usain Bolt. Oscar De La Hoya. Mario Gomez. Mario Reus. Cesc Fabregas. Samuel Eto’o. Michael Carrick. Sergio Aguero and pro-golfer Rickie Fowler are presently the top sportswomans to be endorsed by the trade name. This will assist make a stronger image on the heads of the consumers that can be made through advertizements broadcasted on Television and even placed within relevent magazines. By utilizing reputable sportswomans. fans of these people will so buy Puma merchandises because of their heroes backing the trade name. It will besides profit as the trade name will be recognised and assosiated with the sportswomans shown in its advertizements. Puma patrons legion events. squads and competitions every bit good as the participants it endorses.

Puma patrons competitions and squads in many athleticss such as Boxing. Cricket. Fencing. Football. Gaelic Sports. Golf. Rugby. Sailing. Tennis. Track and Field and Motorsport. It sponsors many noteworthy squads such as St Helens ( Rugby League ) . Williams ( F1 ) . Mercedes AMG ( F1 ) . Scuderria Ferrari ( F1 ) Newcastle Utd ( Football ) . Borussia Dortmund ( Football ) and Feyenoord ( Football ) . Sponsoring many athleticss can profit Puma as fans from these athleticss will recognize the trade name and may buy athletic wear for take parting in these athleticss. Sponsoring reputable squads will give Puma an association with the squads it patrons and fans will purchase Puma merchandises due to this association every bit good as their squads ware.

Puma besides sponsor inter school’s. college’s and corporate tourneies to derive good promotion and it can indirectly consequence the positive attitude towards the trade name. Packaging is besides critical factor in the publicity of Puma. The packaging used can be a critical portion of the merchandise which can do it more various. Packaging can act upon a clients attitude towards a merchandise and can consequence the buying determination of the good. Puma topographic point logo’s of the competitions. squads and events that they sponsor strategically on the packaging of the goods they sell. When they sell a football boot. it comes in a boot bag with a logo of one of the football squads that they sponsor. By making this. possible clients positions on merchandises can be influenced and the merchandise might be purchased. This could take to the clients positions on the trade name as a whole changing and could take to reiterate usage. This could give Puma extra net incomes which could be used to spread out farther.


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Written By: Adcock. Dennis ; Halborg. Al ; Ross. Caroline