PUMA Brand Analysis Report

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BRAND ANALYSIS REPORT

PUMA SUBMITTED TO: MS. Monica Mor

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Table of Contents EXECUTIVE SUMMARY:............................................................................................................................4 MARKET DISCRIPTION:................................................................................................................... ......... 6 CUSTOMER INSIGHT:................................................................................................. ............................. .6 PRODUCT CATAGORIES:.............................................................................................................. .6 COMPETITOR PROFILE:............................................................................................................... .. 6 MARKET SHARE :.............................................................................................................. ......... ...7 COMPETATIOR ANALYSIS:................................................................................................ ........................7 COMPETATIVE SWOT ANALYSIS: ................................................................................................ ......... ...8 BRAND IDENTITY :.................................................................................................... ................................9 BRAND IMAGE: .................................................................................................. ......................................10 BRAND PERSONALITY:................................................................................................................... ............10 BRAND OBJECTIVES: ...................................................................................................................... ...........10 MAKETING MIX: ........................................................................................................................................11 4 P’S:................................................................................................ ...................................... .....11-14 CBBE MODEL: ................................................................................................ ..........................................15 BRAND STRATERGY UNDERTAKEN :.................................................................................................... ...... 16 REFRENCE:..................................................................................................................................................18

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Executive Summary Puma was established when the German brothers Rudi and Adi Dassler split their family company, the “Bebrüder Dassler Schuhfabrik”, into Adidas and Puma in 1948. Rudolf Dassler decided to set up a rival to his brother Adi’s sports shoe factory on the opposite bank of the Moselle River in Herzongenaurach, Germany. By the end of the 1950s, the company had become a limited partnership. It was the first company to use vulcanization production techniques and the first to manufacture sports shoes with Velcro fasteners. In 1986, the company went public. But Puma was already incapable of successfully competing with Nike or Reebok It then opted for a radical reorganization that would transform it into a marketing-oriented company, which was primarily concerned with how to “diversify the brand into a plethora of lifestyle and fashion options. Puma’s company focus thus drifted away from its traditionally centralized structure to “become the first truly virtual sports company This decentralization is best reflected by the fact that it has three headquarters, one in Germany; one in the US; and one Hong Kong. Puma was one of the first shoe companies to successfully market sports apparel. Currently its major business activities include the design, manufacture, and distribution of sporting goods and actively operate in three sectors: footwear, apparel and accessories. Puma products are sold in more than 80 countries on six continents. The aim of our project is to develop a strategic brand management plan in Singapore. Our strategic brand management includes the market description, customer insights competitor profile, brand image, identity, and personality. Our brand strategy and their objectives and the implementation of marketing mix decision for brand awareness.

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Market Description The sports wear industry in India has a very close working relationship with the sportsmen which are the midst of a major transformation. In Indian market Puma is present from many years and a good brand image to the Indian. A convergence of the user, developer and producer has provided Indian with the regions most sophisticated sportswear sector. In the Indian market athletic sportswear began to evolve from a product line aimed at small and unique market into a main stream fashion product. The clear divisions between performance and fashion function and style formal and informal that once existed have became increangisly blurred. The acceptability of casual dress on more occasion parallel the way for sportswear to move into the mainstream clothing market. The trained was accomplished by a real increase in sports participation. The sportswear market in India is well established as well as booming. The demand for sportswear is ever increasing.

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6 Customer Insight Product Categories : Athletic footwear — exercise, baseball, basketball, running, track & field. Apparel — tracksuits, football strips, and similar sportswear. Accessories — sports luggage, footballs, and gloves.

Competitor Profile : Although Puma has labeled “B” brands because in terms of their market share, they form a second rung of manufacturer’s in the sportswear industries just below the market leader or the so called “A” brands like Nike, Reebok and Adidas. So the main competitors for Puma are 1.Nike 2.Adidas 3.Reebok 4.New Balance As mentioned above other sports apparel brands almost dominate the market not just in Singapore but elsewhere as well. Puma is one of the poorly marketed products in Singapore which results in low market share. It is very less popular as compared to other strong competitors. The market shares of these competitors along with the market share of Puma are as follows:

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Market share of all sports apparel brands: (Company) Nike Adidas Reebok New balance Kappa Umbro Others

(Market share) 43.2% 18.03% 10.9% 9.4% 1.0% 1.0% 16.47%

Competitive analysis in terms of SWOT analysis: Almost all the sports apparel brands have strong brand recognition. They all have a wide range of products. These companies are well established not just in Singapore but elsewhere as well. They are all geographically well diversified which has a strong brand recognition. Almost all these brands have good relationships in the form of bonds with sports clubs, athletic teams, international sponsorships, good endorsements across the world which help them to be recognized as a global brand. Strengths Brand Product Range

Weakness Price Young Costumers only

Design

Too few stores

Opportunities Open more stores Cooperate with more designers Consignment goods

Threats Intratype competition Intertype competition

Comparative SWOT Analysis of sports apparel brands :  Nike They are strong as market leaders. They have strong bond with athletic organizations

At the same time their weakness can be noted as their products are highly expensive. Most of their profit margins comes from the shoe market. They can take the opportunities of developing sports wear, sunglasses and jewelry. 

Adidas –

Their biggest strength is that they have a very strong brand name. Their operations are diversified geographically.

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8 At the same time their weakness can be termed as poor margins and low inventory. They have the opportunity of sponsorships. 

Puma –

Puma’s strength is lies in the famous brand name and variety of product range such as Athletic foot wear, Apparel, Accessories, gloves. Puma has very less no of outlets that is the weakness of Puma. Puma can take an opportunity of selling consignments goods and it can also take an opportunity of sponsorship. All the three brands have the threat of increased competition and imitation of goods.

Brand Identity :

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How you want a consumer to perceive your brand can be termed as Brand Identity. We want Puma to be seen as : 1)Young, innovative Brand. People who are young or those who wants to feel young should wear Puma. The customers should feel when they energetic, young, full of life when they wear Puma. That Brand Identity we want to gain for Puma. 2)A sports Lifestyle Brand – Puma seeks to be the most desirable Sports lifestyle company by developing a sustainable, iconic and global brand built upon core values such as design, innovation and inclusiveness and communicated to thru all consumer’s touch points from product to distribution to marketing. The result is holistic, meaningful and long term relationship with consumers. 3)A socially responsible brand. Puma should be recognized as an environment concerned socially responsible brand. Puma developed the social accountability and fundamental environmental standard house with 5 core pillars as a basis for their S.A. F.E concept representing a milestone for Puma’s corporate social responsibility policy. Social accountability means puma stands for its responsibility to all it’s stake holders including

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10 direct and indirect employees, share holders and consumers. Puma needs an active dialog with these stakeholders and interest groups such as governmental organizations, academia and others. The environmental standards aims to reduce any negative environmental impact from Puma’s business activities and guarantees products are free of hazardous substances. Puma aims at producing environmentally compatible sports goods.

Brand Image : It is the image of the perception which the customer has about your brand. 

Sports Brand.

People think that it is just a sport brand. They should also wear Puma casually. 

It is not at par of Adidas and Nike.

Puma is not as famous as Adidas and Nike. It has gained the breadth of brand awareness but not the depth. When people want to buy sports shoes the brand name come to their mind is Nike and Adidas. Puma does not occur to their minds at first place. People also think that Puma is not a sophisticated Brand.

Brand Personality : A Brand’s relationship with human being, his characteristics and personality. Puma can be related to personality which has characteristics like innovative, fun loving, exciting, outgoing, energetic, full of life etc. For Example - A famous Indian young creative Actors like Zayed Khan and Shahid Kapoor who has these traits. Puma can be related to them.

Brand Objective : 

To make Puma as sophisticated Brand

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Puma to be known as a Sports life style brand.

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Puma to be known as socially active and responsible brand.

Marketing Mix :

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A marketing mix is the combination of product offering used to reach a target market for the organization. It consists of the controllable variable that a company puts together to its target market. Marketing mix comprises the product (what the actual offering comprises) price (the value exchange for that offering), promotion (the mean of that communicating that offering to the target audience) distribution (also known as place, the mean of having the product offering available to the target audience) therefore marketing mix also known as the 4 Ps. 

PRODUCT: In term of product we are going to come up with strategies in quality, warranty, and innovation.

a) Quality: we look forward to provide better quality product to our customer, to differentiate in term of quality standard. Hence, puma has already established its brand reputation over the years. But still there are people, who prefer other brands like Adidas and Nike. So to be the first choice in consumer mind we have to increase the standard, so that consumer should have a wish or perception on their mind to opt for the brand. b) Warranty: we will provide one month warranty to every customer to gain customer loyalty, that if any fault has been seen after purchase we will exchange with a new pair of shoes…therefore we can create brand image. c) Innovation: We will be coming up with continuous innovation in our product range, so that the customers get his/her suitable choice. We would like to redesign our shoes and every other stuff, for every age group. Not just sportswear but in every product of puma, every age group should find their choice of stuff in our product range. There is less interest among customers in Puma due to less product range as compared to the market leaders Nike and Adidas. To change this attitude we are trying to redesign and increase our collection of shoes not just for sportswear but for casual and office wear too. Bringing distinctive and latest trendy design is our prime focus, as we all know that these days, we all are fashion conscious.

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 PRICE: We are going to set a competitive price. Due to Chinese new year we will provides 20 %

discount to the customer, so that they can buy puma brand and look over the brand as in compare to other high level brand. Discount on high unit purchase i,e if 4 pair of shoes are purchased in span of 1 year then customer will get 50% to 60% off on their 5th one when they will buy, this will grow the customer attention toward our brand and they mite switch from buying an Adidas sportswear. We will also introduce a innovative way, that on purchase of a pre set limit a free gift will be offered. The company will also offer package like a full range of soccer apparel, including jersey to gloves throughout the year. PROMOTION: I It can be done in various ways. We will sponsor events like Formula -1 car racing, road shows 

or local football match to increase our brand identity and that will create public awareness. We will also sponsor inter school, college and corporate tournament, to gain good publicity toward our brand puma and also can indirectly help to get a positive attitude towards puma by our customers. Endorsement: Since puma is already a reputed brand in the market; therefore finance won’t be a problem at all. Therefore in order to create a strong brand image we can endorse celeb like tiger woods to promote our strategies, that will help to create a image on consumer mind, that can be made telecast through advertisements in t v and in mrt and buses or even in magazines like sports star and sports today. Keeping the collection available in puma website, because there are people who don’t have time to check, by going on around various store so they can look through the particular website to select product of their choice and buy the stuff. This can be added advantage for us to capture those potential customers who love to shop online. It will create strong brand image. Packaging: it is also a vital factor. As it involves the development of a container and a graphic design for a product . Packaging function includes protecting the product from damage. As package can be a vital part of the product making it more versatile. Like a brand name, a package can influence customers attitude towards a product and so effect their purchase decision, so we will look through our packaging. We will try to use the promotional logos of Formula-1 car racing competition in our shoe boxes. It is going to a big sporting event in Singapore and will definitely enrich our brand image if we become successful being one of the sponsor of the event.

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14 The sports shoe industry is estimated to be worth S$70 million, with growth rates averaging 5-10% a year. Sports shoes have become big business, as more people are adopting exercise as a way of life. Function and style are equally important for a majority of consumers when it comes to choosing a sports shoe. Consumers want their sports footwear to be useful for their sport, and to look good on a social level, as they want to wear them on the street as well. However, keen sportsmen continue to stay with high-end performance products with the wide variety of sports shoes currently available (ranging from basketball, running shoes, aerobics, tennis, and other sports). This is probably a opportunity for puma to increase and raise the standard of the brand. Hence innovation and increase in product range is seen viable that what puma lack in comparison to other brands. To create a strong brand image, we will be implementing successful strategies to get into people mind that puma brand is also a better one along with nike and addidas. Meeting customer expectation is our ultimate goal. PLACE : They are planning to open more retail outlets where there is consistent foot traffic with all the latest design and product of puma. We are trying to provide information of our latest promotions and product range through mobiles to our customers. It can be easy for anyone to retrieve information regarding Puma anywhere and anytime. This will definitely attract more customers to our Puma stores and help building a strong brand image.

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15 Customer Based Brand Equity :( CBBE MODEL )

1)Identity (Salience): Right from its inception, Puma has one of the most elegant logos among sports lifestyle goods. It has further supported its logo by the use of vibrant colors right from it packaging to its advertisements. People clearly identify this logo under any circumstances. This identity further brings to the minds of consumers the unique characteristics of the brand and the usefulness of it. Further it has tried to use this logo by making it larger than life on all its products. 2)Meaning (Performance / Imagery): Puma has always fulfilled the elegant requirements of a true sports lifestyle brand. It has specially designed products for a lot of sports and furthermore it has created such innovativeness that these products can be further extended to everyday casual use. People consider Puma to be a young brand that fulfils the high image requirements of the youth. It has always laid emphasis on innovation and striking designs in its products and has positioned itself as a high end fashion brand because of its high pricing. 3)Response (Judgments/Feelings): The perception of the consumers in Singapore for Puma has reached from functional to aspirational because not only does it fulfill the basic needs but due to its innovativeness and quality level, it has created a feeling of trust among its consumers. Unlike lower brands, consumers feel a sense of pride using puma products. All the more, the youth have understood its unique offerings and use it at various occasions by not limiting themselves to using it in specific categories. 4)Resonance: Though Puma has improved considerably over the years in Singapore, it has still not achieved the respect showered towards Nike, Adidas and Reebok. People still consider these

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16 brands superior in quality, class and functionality. Puma is trying to reach this level by further creating awareness by emphasizing on being a sports lifestyle brand. Brand Strategy : In 2010, they took an intense look at how to differentiate the PUMA brand from our major competitors in the sports market. The brand clarification involved evolving our positioning, a more detailed understanding of our target consumers and a zooming into who we are and how we look at the world with the crucial addition of sustainability to the PUMA brand’s vision. The World Cup Year 2010 coincided with the International Year of Biodiversity and PUMA – being the brand that joyfully mixes the influences of Sport and Lifestyle with the desire to contribute to a better world – seized the opportunity to combine its passion for sports, Africa and nature.They partnered up with the United Nations Environment Programme (UNEP) and launched the “Play For Life” campaign to support biodiversity worldwide and specific initiatives in Africa. Their goal was to raise awareness about habitat and species conservation among football fans and the general public during the Football World Cup and other football events worldwide. PUMA’s key fundraising lever was the revolutionary Africa Unity Kit - the world’s first ‘continental football kit’ designed to be worn by the 13 African football national teams that PUMA sponsors. The Africa Unity Kit was approved by FIFATM who officially recognised it as the Official 3rd kit to be worn by those PUMA-sponsored African teams. With all eyes on Africa during the 2010 football season – the Africa Unity Kit made a compelling global statement. By supporting the Africa Unity Kit, African teams are not only uniting as a powerful force in world football, but also raising awareness of the importance of environmental issues. The Unity Kit related products were amongst the top ten sellers in PUMA stores throughout the duration of the World Cup. PUMA once again lived up to its reputation as the leader in design and product innovation within the Sportlifestyle industry. PUMA’s third generation v1.10 football products that were worn by some of the best players in the world - including Samuel Eto’o, Emmanuel Eboue, Chinedo Obasi, Mohamed Zidan and Mario Gomez - scooped the prestigious iF product design award 2010 in the Leisure/Lifestyle category. The v1.10 boots and gloves combine high-performance materials with an African-inspired design aesthetic.

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Reference:

1)Kevin Lane Keller, second edition, 2003, Strategic brand management, Pearson prentice hall. 2)Philip Kotler, eleventh edition, 2003, Marketing Management, Pearson Education inc. 3)About PUMA > Company. 4)Puma - Review - KING OF THE ASTROTURF. 5)About PUMA > Company > Company History.

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18 6)Marketing Mix. 7)Welcome to adidas. 8) http://safe.puma.com/us/en/wp-content/uploads/GB-e-2010-sp.pdf 9)Nike.com. 10)Marketing Your Business: Building a Competitor Profile.

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