Submitted by:Karthik V

Kartikeya BatraMansi ThakarPooja Varma

Shreya Gupta

Case Study Presentation PUMA AG

History and Case Facts: Dassler brothers in 1984 started the

Dassler Brother’s Shoe Factory.In 1948 The brothers split their business

after the World War 2, Adolf called his firm Adidas and Rudolf called his new firm Ruda.

Rudolf’s Company changed its name to Puma in 1948 and became a public company in 1986.

What the Puma Logo meant?

The Leaping Puma symbolizes a combination of speed, power and elegance often exhibited by professional athletes

The Puma logo is a symbol of the fierce rivary between the 2 brothers. No longer working with his partner and brother, the brand would come to symbolize the solitary and secretive nature of Rudolf’s new venture as it moved forward.

Phases in Management:Phase 1:o Aimed at making Puma profitableo To build a strong financial foundation.o Changes centred around the companies accounting

practises.o Profit centres and distribution oriented controlling

products were identified.o A working capital and accounts receivable were reduced.o Organization was restructured to be more cost efficient.o Production was outsourced to Asia and Turkey.o In short the focus was on its core competencies:

Marketing, brand Management and product management.

Phase 2:o Puma’s long-term development plan starts.o Its aim is to re position the brand as a high

value in both sport and life style sales categories.

o Producer Arnon Milchan was convinced to invest in Puma in 1997.

o This was a part of the brand building exercise that Zeitz planned on doing.

o Puma products appeared in several hollywood productions.

Current Brand Differentiation:Reasons for being: Mixing the influence of sports,

lifestyle and fashion.Value proposition: Fits your active lifestyle.Reasons to believe: 1. Distinctive trend setting styles.2. Branded retail experience (concept stores)3. Co developed celebrity lines( Nuala)4. Co branding partnerships( Ferrari)5. Partnerships with famous Designers6. Promotional events (Fifa)

Contd..• Persona: elegant, colourful, fresh,

spontaneous, individual, metropolitan, international

• Product Portfolio: Performance and causal footwear, apparels and accessories , sport equipments

• Audience: Anyone who leads an active lifestyle.

Strategies:Niche Differentiation StrategyPuma Sponsors many extraordinary sports teams- Jamician

Soccer team.Puma categorized its products according to different types

of sports.Puma’s innovative methods: Cell technology, new Shudoh

Shoe.Strong innovative marketing strategy: New collections like

Nuala and Platinum, relaunching the 1970 and 1980’s collection and calling it retro look .

Strong brand positioning: Worn by Madonna, displayed in exclusive boutiques next to luxury brands endorsed by famous athletes like David Beckham, Boris Beckar etc

PESTELPolitical / Legal

Different international and local laws because of outsourcing to low cost countriesTrade restrictions and tarrifs

EnvironmentalEco friendly products

SocialMore and more people are into sportsSports an important aspect into tourism industryPopularity of new sports such as skateboarding and divingDemographics –more women into sports

Technological Focus on RNDApplication of automation and new technologiesGlobal communication

EconomicalEconomic trends of home country (Germany)and

partner countries in terms of stocks,monetory issues

SWOT Analysis:Strength Weakness Opportunitie

sThreats

Innovation Wanting to address customers from every social segment.

The growth of the fitness industry

Imitation of products

Careful company partnerships

Product sold at dirt cheap prices.

Technology Growth

High competition.

Branding and Positioning

Value chain issues

Globalization

Endorsement of charismatic Celebrities.

Narrow product line

Outsourcing raw material and production.

Not present in all markets.

Puma Concept StoresTie ups with Famous Designer stores

PORTERSThreat of new entrants-low

•Established dominated players like nike,adidas•Brand positioning•Customer loyality to established brand

Bargaining power of buyer-high

•Price sensitive•Customer preferences•Brand loyal

Bargaining power of

supplier-low•Fragmented suppliers•Raw materials and cheap resources

Competitive rivalry-high

•Cutthroat competition-adidas,nike,diesel•Differentiation strategy

Threat of substitute

products-high•Undifferentiated products offered by players•Trends and fashion

Key Success Factors:Design and development of high quality

sportswear and apparelsCustomer loyalty and brand awarenessBrand positioning and Brand endorsementContinuous marketing research and

innovative productsGood supply chain management-JIT

Conclusion:To increase the Market Shares in Asian

Market.To Invest more capital in R and D.Aim to develop its market in accessories.

THANK YOU!!!!