Introduction
Clothing Industry 1924 (registered in -1948) Rudolf Dassler Herzogenaurach , Germany Jochen Zeitz (CEO and chairman of the management board), Melody Harris-Jensbach (deputy CEO), Francois-Henri Pinault (Chairman of the supervisory board) Products Foot wear, Sportswear , Sports goods, Fashion accessories Revenue 2.461 billion (2009) Operating income192.4 million (2009) Profit128.2 million (2009) EmployeeApprox- 10,000 (end 2009) Main geographic areas-Europe, United States, Asia Official websitehttp://www.puma.com Industry Founded FoundersHeadquarterKay people
Company Profile
It was founded in 1924 and has head quarters in Germany . In 1948 , Adolf Dassler split from his brothers company , Adidas to form his own company called Puma. Puma is a large German multi national company which designs and develops athletic shoes, lifestyle footwear and other sports wear and accessories. The company also offers lines shoes and sports clothing, designed by Lamine Kouyate, Amy Garbers, and others.
Contd
It distributes its product in more than 120 countries, employs more than 9000 people and generates revenue of $2.5 millions. They sponsor many football teams all over the world and have a big involvement in terms of sponsorships in the football matches and players. Puma is partnered with several major national soccer leagues in countries such as Germany and Egypt.
Puma in India
June 2006, the first Puma Store opened in Chennai. Puma India closed 2007 with 14 exclusive stores, presence in hundred outlets and a Regional Office in Gurgaon (NCR). Within a short span of 2 years PUMA India has established itself as the most desirable sports lifestyle brand of the country. Currently, Rajiv Mehta is the Managing Director of Puma India, Bangalore, India.
Company History
1924: Rudolf Dassler and his brother Adolf start making sport shoes. 1948:Adolf Dassler split from his brothers company , Adidas to form his own company called Puma. 1951: Rudi registered the first version of the puma logo. 1958:Introduction of Puma's signature form strip at the FIFA World Cup in Sweden. 1974: Rudolf Dassler dies. His sons Armin and Gerd take over the company's management. 1986:Transformation into a stock corporation. 1993:At age 30 Jochen Zeitz was named chairman & CEO of puma AG . he shifted the production from Germany to Asia. 1994: The first profit since the companys IPO in 1986 is registered . 1998:Puma merges sports and fashion. The company starts a cooperation with designer Jil Sander . 1999:Puma becomes an official on-field supplier of the U.S. National Football League (NFL).
Contd
2000: Production of fireproof footwear in partnership with Porsche and Sparco. 2003: Majority shareholder Monarchy/Regency sells its shareholdings to a broad base of institutional investors. 2004: Collaborative partnership with world-renowned designer Philippe Starck . 2005: Total of 16.91% shareholding. 2006: Shoe collection in cooperation with Alexander McQueen. 2007:Brazilian football club will be the first to use the laser sewn technology. 2008: Melody Harris-Jensbach is appointed Deputy CEO; Designer and artist Hussein Chalayan becomes Creative Director. 2010: Signs two year deals to make the kits of Newcastle United, Motherwell, Hibernian & Burnley from the 201011 season.
Corporate Strategy
This long-term strategic objective is to be achieved through: Expansion of product categories Regional expansion Expansion with non-PUMA brands
Brand communication
Clean & Modern typography: letting the products speak for themselves. Refined color palette: Layout: Logo identity & placement -Master logo -Typography logo -Leaping cat logo -Super cat logo
Pumas Brand
Puma has master and sub brands. Master Brand Sport Lifestyle Sport Sub Brands-Nuala -96 Hours -Mihara -Starck
Retail
PUMA is continuously focusing 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, and firmly maintain its position that retail should function simultaneously as a tool to generate profitable growth.
Products
Sports
Life style
Men
Women
Kids
Swimwear
Accessories
Fragrance
Sunglasses
Body wear
Socks
Price
Soccors The price points under this range start from around Rs. 2200 & maximum reaches out up to around Rs. 9500. Here the average price point is around Rs.5850. Running shoes: The price points under this range start from around Rs. 2200 & maximum reaches out up to around Rs. 6330. Here the average price point is around Rs.4265.
Revenue by produts
Sales
Tennis Sports life style Running
Training 3 %
23%
28%
Others 13%
% % % 8% 6%
SWOT Analysis
Strength Financial growth is phenomenal. More diversified than its competition. Wide array of shoe- wear. Brand stands for quality, latest technology and prestige. Increase in demand is the expected market trend Global brand Pumas 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.
Industry Analysis
The sport industry is now estimated to be worth $500 billion worldwide, but recent growth belong to a new rapidly developing markets. These markets are located in Brazil, Russia, India, China, Central Asia, Eastern Europe, the Far East and Africa. Regional hubs of Puma are: Germany , Austria, Hong kong, USA, Australia A number of new centres around the world are playing an ever more visible role in global sport. In the market of sport products there are three main players: Nike, Adidas and PUMA.
The Compititors
Nike Number one sports brand in the world US based: administrative activities & design and product innovation Sub brands like Tiger Woods or Michel Jordan ADDIDAS Focus on core sports like soccer, tennis, athletics and skiing 6 times the financial resources Design and marketing department 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, footwear, watches, fragrances and writing tools Experienced an unexpected growth rate Brand is still situated in Italy (jeans production)
Promotion of Brand
Who and What Sports: Who: fans of niche sports who are fashion conscious What: buy the puma products for the sports they like and express their love for the sports through wearing them Lifestyle: Who: young, hip, trendy, urban What: buy, wear and talk about their PUMA gear as a personal statement
Sales growth of 10% while maintaining strong margins Continue to invest in product innovation across categories and markets Expand retail operations Provide unique brand experience Speed to market Gain product development and marketing expertise by being closer to consumer
Raise profile of PUMA brand Continue designer collaboration approach Communicate through all touch points Drive traffic to PUMA stores Increase loyalty and repeat purchase
Reference
www.puma.com http://www.wikipedia.org http://www.gotomanager.com/news/