brand extension: marketing plan · strategy. although steering away from sportswear, all its...
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B R A N D E X T E N S I O N : M A R K E T I N G P L A NVei BobadillaRizta PratamaMichelle Nguyen
EXECUTIVE SUMMARYPUMA’s rising sales in the past year has prompted a poten-tial for a successful brand extension. In this marketing plan is the introduction of a Ready-To-Wear line catered towards the power women, embracing PUMA’s “The Future is Female” strategy.
Although steering away from sportswear, all its products will maintain PUMA’s high performance quality — allowing flexibility and comfort in every day wear.
With its new product line in a new arena, PUMA can gain an advantage reaching into an uptapped market in sportswear. A RTW collection would spread PUMA into the fashion industry and put it in the forefront — gaining new market share that its competitors have yet entered.
ABOUT PUMA“FOREVER FASTER”PUMA is a global athletic brand founded in 1948 and headquartered in Germany.
Their products have played a key and influential role in sports throughout the decades. Their collections range from performance to lifestyle.
It currently distributes to over 120 countries.
BRAND VALUESBRAVE CONFIDENT DETERMINED JOYFUL
CURRENT LINESTEAMSPORT football apparel, footwear, products
RUNNING & TRAINING running apparel, footwear, products
GOLF COBRA PUMA GOLF apparel, footwear, accessories
MOTORSPORT racing apparel, footwear, partnerships
SPORTSTYLE sports-inspired lifestyle collections
KIDS lifestyle and sportswear collections for infants to teens
ACCESSORIES & LICENSING accessories
TARGETANALYSIS OF CURRENT CUSTOMERSPRIMARY:
15-35 years oldMale, femaleMiddle to upper class
SECONDARY:
7-14, 36-55 years oldMale, femaleMiddle to upper class
ATHLETIC
BOLD
ACTIVE
STYLE-CONSCIOUS
CREATIVE
COMPETITION
Global revenue: 3.39 billion euros 16.92 billion euros 27.83 billion euros
# of stores worldwide: 540 (2013) 1,698 (2015) 931 (2015)
PARTNERSPUMA SPORTS INDIA PVT. LTD. Wholesaler / Distributor / Supplier for:
Sports ProductsSports FootwearsSports ApparelSport Accessories
DISTRIBUTORS WAREHOUSE, INC. Wholesaler / Distributor for:
Inventory PUMA tools, parts, air compressors
INTRODUCTION OF NEW LINEa new ready-to-wear collection for apparel, footwear, and accessories
collection is emphasized by its performance capabilities — despite being more formal wear.
PUMA RTW CollectionPOTENTIAL IN SALES TURNOVER goal is to improve sales in the period by 20% FORECASTS we predict line will thrive due to increase popularity in sportswear and fashion collaborations
TIMING now is a good time to enter this market because PUMA has al ready initiated its fashion image with FENTY... the market is currently very receptive to sport vs. fashion collaborations
idea & development) 1 monthproduction ) 2 months
promotion & distribution) 3 months
3 AIMS
1. Extend the PUMA brand into RTW collections market
2. Refresh PUMA reputation and keep it relevant to evolving markets
3. Pioneer the evolution of athletic companies and product technology
"PEST" ANALYSISPOLITICAL & LEGAL
ECONOMICAL
SOCIAL & CULTURAL
TECHNOLOGICAL
Governmental regulations for importing and exportingTrade practice & manufacturing lawsTaxes, tariffs, etc.
Rising strength of developing markets Asia, Central & South AmericaStability in European markets
Successful use of celebrities / spokespeople to endorse brandPositive Brand ImageEstablishment of product in market positioningIncrease in popularity of lifestyle + sportstyle trend
Rising use of social media platforms to promote brand imageE-commerce used to reach international marketsInternet offers immediate and direct feedbackProduction technology allows for the advanced product capabilities
SWOT ANALYSISSTRENGTHS WEAKNESSES
THREATSOPPORTUNITIES
Strong, positive brand awareness
Successful & stable business model
Financially stable & able to sup-port new venture
Different approach to brand and product lines
May take time for consumers to adjust
Slow introduction / adaptation into the market
Inability to successfuly merge into current product lines
Pioneer this branch of RTW for traditionally athletic company
Not many direct competitors to new product lines
MARKET SEGMENTATIONFemale, ages 18-40Medium - high income, flexible spending patterns
FASHION FORWARD, INDIVIDUALISTIC, CREATIVE, PRACTICAL, ATHLETIC
Trusts the brand, but is willing to experiment with the new extension and type of products offered
Responds well to digital marketing, celebrity endorsements, and the allure of being at the forefront of the curve
The product line would fit into her typical fashion habits while satisfying the novelty factor she seeks and refreshing the brand image
ALTERNATIVE STRATEGIES
Sports / athletic drinks & nutritional supplements Adding an extension to the brand that focuses on PUMA brand athletic drinks and supplements such as protein bars to pair with athletic theme
Technology accessories Creating a line of sports accessories and technology such as watches, bands, headphones, and other pieces that are capable of monitoring athletic activities
CHOSEN MARKETING STRATEGYPUMA FOR THE “IT” WOMANReady-To-Wear collection that complements the brand image, but invites a new target audience of high, fashionable women
Extends the product line beyond athletics but maintains its essence
Products hold performance capabilities, making them unique in the market
Gives PUMA a distinct advantage over other athletic company competitors and shows ini-tiative towards the direction of the company
Continues brand’s effort into the fashion markets (FENTY, McQ by McQueen, etc.)
MARKETING MIXPRODUCT PRICE
PROMOTIONPLACE
RTW Collection that features sleek, chic, forward styles
With exceptional performance capabil-ities that extend the brand while main-taining its essence and values
Mid to high level prices
Ranges from $50- 300
Affordable to target
Use celebrity endorsements by influential figures that appeal to target market
Social media platforms to spread commu-nication and introduce the product line through platforms that the target uses
Sold primarily in PUMA retail loca-tions
Multi-brand retail and department stores
PRODUCTHIGH QUALITY APPAREL, FOOTWEAR, ACCESSORIES — same superior performance quality as previous products
AIMS Extend the PUMA brand into RTW collections market Refresh PUMA reputation and keep it relevant to evolving markets Pioneer the evolution of athletic companies and product technology
PACKING & PACKAGING Maintain original PUMA packaging as to not divert from brand
WARRANTY Offers a 1-year warranty for any malfunction or manufacturing error
PRICING STRATEGYPRODUCT INTRODUCTION:
PRODUCT DEVELOPMENT:
PRODUCT MATURITY:
PRODUCT DECLINE:
PRODUCT RE-LAUNCH:
skimming pricing strategy — introduce collection with higher price then price re-duction until it aligns average demands
decrease prices to reach more market shares, increase production volumes
maintain stable prices
price reduction — place discounts for a limited time using special information campaign to not lose brand awareness
original launch in north america and if successful, relaunch globallydepending on success, we could keep the items that are in demand and launch new collections every season
DISTRIBUTION
DIRECT PUMA stores, online store, and outlets
INDIRECT Selective distribution in order to fitwithcollectionstyle Multi-brand retail and depart ment stores
PROMOTION STRATEGYOBJECTIVE Inform about new collection Strengthen “The Future Is Female” strategy Create positive emotions to associate with collection Generate customer interest and purchase intentions
“THE FUTURE IS FEMALE” PUMA believes that women will continue to be more and more involved in sports worldwide, and sports is having an ever in- creasing influence on fashion PUMA wants to strengthen focus on female target group
ADVERTISING Launch advertising campaigns consisting of female heroes Strong, confident, powerful, dominant Emotionally lure target market to want to be like the models
Message: be successful, powerful, strong and fashionable with PUMA
High fashion magazines: Vogue, Elle, Marie Claire, Nylon, etc. Digital: Hypebae, Highsnobriety, social media, influencers
PUBLIC RELATIONS Product placements in magazines and editorials Involve female journalists as example of our power women
VISIONSHORT-TERM In a quarter, improve sales by 20% Successfully make collection viral Learn about primary competition and brainstorm what PUMA offers that they don’t
LONG-TERM Increase revenue by 5% at the end of the current fiscal year Reposition PUMA as the World’s fastest sports brand To be the world’s leading sports brand Propel PUMA as a fashion-oriented sportstyle brand Increase additional store outlet worldwide
CONCLUSION
Launch Ready-To-Wear collec-tion
Create alternative product line to differentiate PUMA from oth-er brands
New market share acquisition
RECOMMENDATIONS
Stress on “The Future is Female” strategy
Refocus on the brand
Advertise philosophy and sustainability aspect
Advertise products differently, especially in comparison to competitors
Have wider variety of product line