CHAPTER-1

INTRODUCTION
1.1 Marketing Introduction

Marketing is the study and management of exchange relationships. The American Marketing Association has
defined marketing as "the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large."

The techniques used in marketing include choosing target markets through market analysis and market
segmentation, as well as understanding methods of influence on the consumer behavior.

From a societal point of view, marketing provides the link between a society's material requirements and
its economic patterns of response. This way marketing satisfies these needs and wants through the development of
exchange processes and the building of long-term relationships.

In the case of nonprofit organization marketing, the aim is to deliver a message about the organization's services to
the applicable audience. Governments often employ marketing to communicate messages with a social purpose,
such as a public health or safety message, to citizen

Contemporary approaches

Recent approaches in marketing include relationship marketing which focuses on the consumer, business
marketing or industrial marketing which focuses on an organisation or institution and social marketing with focus
on benefits to society.[7] Newer forms of marketing also use the Internet and are therefore called Internet
marketing or more generally e-marketing, online marketing, 'digital marketing', search engine marketing, or
'desktop advertising'. It attempts to perfect the segmentation strategy used in traditional marketing. It targets its
audience more precisely, and is sometimes called personalized marketing or one-to-one marketing. 'Direct
marketing' is used by those organisations, such as insurance services and health clubs, that have a defined customer
or membership base they wish to develop strong, on-going relationships with via personalized communications –
traditionally through 'direct mail' (postal) communications and more recently, via e-mail. Additionally, direct
marketing will employ broadcast mechanisms such as press, print, or television campaigns with a strong call to
action to attract new customers or members. Internet marketing is sometimes considered to be broad in scope,
because it not only refers to marketing on the Internet, but also includes marketing done via e-mail, wireless media
as well as driving audiences from traditional marketing methods like radio and billboard to internet properties or
a landing page.
1.2Introduction to topic

Puma SE, officially branded as PUMA, is a major German multinational company that producesathleticshoes,
footwear, and other sportswear. The company was formed in 1924 as Gebrüder Dassler Schuhfabrik by Adolfand
Rudolf Dassler. The relationship between the two brothers deteriorated until the two agreed to split in 1948,
forming two separate entities, PUMA and Puma. Both companies are currently based in
Herzogenaurach, Germany.Puma is known for its football shoes and has sponsored including Pelé, Eusébio,
Johan Cruijff, EnzoFrancescoli, Diego Maradona, LotharMatthäus, Kenny Dalglish,

The company offers lines of shoes and sports clothing designed by LamineKouyate, Amy Garbers, and others.
Since 1996 Puma has intensified its activities in the United States. Puma owns 25% of American brand sports
clothing maker Logo Athletic, which is
licensed by American professional basketball and association football leagues. Since 2007 Puma SE has been part
of the French luxury group PPR.
1.3 Literature review

Marketing Mix Of Puma

Brothers Rudolf Dassler and Adolf Dassler started making shoes in 1924 and formed a company called Adidas.
However, in 1948, Rudolf split from his brother’s company, and started a company called Puma. Puma has since
then grown to become one of Germany’s largest maker of athletic shoes. It is a public limited company, which is
listed in Frankfurt Stock Exchange. Puma employs more than 9,000 people and distributes its shoes in more than
120 countries throughout the world, generating more than $2.5 million in revenue per year. The company has
headquarters in London, Germany and Hong Kong.

Actually, Puma as a brand is committed to contribute to the sports world by supporting sustainability, peace and
creativity. And staying true to its values has made the company a global force. However, this is not the only reason
why the company has recorded such a huge success. Its excellent marketing strategy has seen to it that it continues
to be a global leader in athletic shoe making. Apart from shes it has also forayed into manufacturing of sports gear,
watches and other accessories.
 Product in the marketing mix of Puma
Puma has a wide range of footwear, sports goods, and sportswear and fashion accessories. Puma is also the main
producer of enthusiast driving shoes and race suits. As matter of fact, the company is the sole produce of NASCAR
and Formula 1. In addition to that, the company has partnership with BMW and Ferrari.
Through its collaboration with renowned designers such as Alexander McQueen, Rossi and Yasuhiro Milharaand,
Puma has established itself as a reliable brand that can be depended upon to offer quality products. Specifically, the
company produces the following products
 Sports shoes
 Custom made shoes
 Apparels
 Fancy shoes
 T shirts
 Tracks
 Boxers accessories
 Gloves
 Helmets
 Water bottles

Puma uses national brand ambassadors to promote its product line. Product diversification strategies include
production of gymnasium equipment, trekking equipment and Nutrition and Fitness consultancy. Product
diversification strategy is designed to make the company more profitable and attract a diversified customer base.

Promotion in the marketing mix of Puma

The company’s advertisement strategy in India focuses more on revenue generation from cricketing equipment and
sponsoring Ranji trophy. But the company also spends a lot of money advertising in print media and designing
creative billboards. Also, there is a greater focus on football gear revenue.

Other advertising strategies include the following

 Television commercials
 Online customization options
 Excellent apparel packaging
 Engaging in corporate social responsibility like environmental pollution control
 Sales promotion is also another marketing strategy employed by Puma and this comprises of various short-term
incentives that encourage more purchases and trials of the products.
The following celebrities have endorsed puma as a brand
 Badminton- SainaNehwal
 Tennis Gears- SomdevDevramman
 Cricket Equipment- Yuvraj Singh
 Health Academy- ShilpaShetty

Puma is also playing its public relations game well. For instance, the company sponsors trophies in order to promote
and protect its image.

Place in the marketing mix of Puma

Puma shoes are mostly distributed to multibrand storefronts as well as the exclusive Puma stores that can be found
in major cities in the world. This necessitates a wider selection of shoes and accessories to customers than the
competition. With big distribution network coupled with harnessing resources and experience, it is a brand
available almost everywhere.

Also, Puma is continuously focusing on retail expansion as can be seen with its aggressive opening of new stores in
various countries throughout the world. This is not only meant to bring the products closer to the consumer but also
drive its brand and generate profits. As a matter of fact, Puma has vowed to continue to expand its consumer base
and full integrate its retail stores online.

Pricing in the marketing mix of Puma

Puma’s product prices are affordable when compared to higher priced competitors like Reebok and Adidas. The
pricing strategy employed is designed to offer competition to its rival companies. Moreover, Puma normally uses
premium pricing strategy because Puma views its brand as premium. Thus, Puma will be higher priced when
compared to a competitor like Bata. Adidas and Reebok are the only closest competitors for Puma, pricing of whom
is comparatively higher than Puma. Due to the brand name it enjoys, the pricing of Puma products look convincing
most of the times.

Objective of the Study

The purpose of the study is to discover answers to questions through the application of secondary information.. The
main aim of study is to find out the truth which is hidden and which has not been discovered as yet.

The main objective of this research was to :-

To study about Puma i.e. when it was established, why it was established and by whom it was established, financial
structure, organisational structure etc.

To study about marketing strategies adopted by Puma SWOT analysis of Puma.

CHAPTER 2
LITRATURE
REVIEW
Marketing Mix

The marketing mix is a business tool used in marketing and by marketers. The marketing mix,
originally coined by Neil Borden, can be used when determining a product or brand's offer,
and is often associated with the four Ps.[8] The four Ps was proposed by professor E. Jerome
McCarthy in the 1960s.[9] The "four P's". Product is the first P representing the actual
product. Price represents the process of determining the value of a product. Place represents
the variables of getting the product to the consumer such as distribution channels, market
coverage, and movement organization. The last P stands for Promotion which is the process
of reaching the target market and convincing them to buy the product. The four Ps determine
how marketing satisfies consumer needs. They are considered controllable marketing mix
factors, meaning that they can change or be altered as needed. Habits, lifestyle, and diet are all
considered to be controllable risk factors.

In the 1990s, the concept of four C's was introduced as a more customer-driven replacement
of four P's.[10] There are two theories based on four Cs: Lauterborn's four Cs
(consumer, cost, communication, convenience)[11] and Shimizu's four Cs
(commodity, cost, communication, channel) in the 7Cs Compass Mode

Factors of influence on marketing strategies

In addition to the controllable marketing mix factors, there are uncontrollable factors called
environmental forces. The external influences are the forces that affect the characteristics of
the marketing strategies to which marketeers adapt. Amongst others they include: regulatory,
economic, social, political environmental, competitive, and technological.[16]

• Regulatory: This refers to laws and legality (governmental policies) that may affect the way
marketing can be characterized. For example, government restriction on the importation of a
particular product might hinder the marketers playing in that particular field.

• Economic. Various trends in the economic business cycle, including inflation, recessions,
deficit, or income level. Each of these factors can have a direct impact on marketing which
may have to be re-evaluated and overhauled as a result.

• Social: The social forces refer to the structure and dynamics of individuals and groups and
their behaviors, beliefs, thought patterns, and lifestyles, friendships, etc. When consumers
change their needs and wants, this directly affects marketing strategies.

• Political: The socio-economic conditions are closely related to the state of the governmental
institutions. Depending on the governmental impact on bureaucracy, corruption, freedom of
speech, and other limitations (or opportunities), the marketing strategies will adapt to the
political conditions.

• Competitive: Competition refers to the numbers of similar competitive product brands. A

new competitor entering the market will directly affect the marketing strategies of the
incumbent companies. Firms offering similar services or products often achieve
differentiation through marketing, positioning, and branding.

• Technological: The marketing strategies often adapt to the pace of development of the
consumer demand and exponential technological progression

Customer Orientation

Constructive criticism helps marketers adapt offerings to meet changing customer needs.

A firm in the market economy survives by producing goods and services that persons are
willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's
future viability and even existence as a going concern. Many companies today have a
customer focus (or market orientation). This implies that the company focuses its activities
and products on consumer demands. Generally, there are three ways of doing this: the
customer-driven approach, the market change identification approach, and the product
innovation approach.[17]

In the consumer-driven approach, consumer wants are the drivers of all strategic marketing
decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of
a market offering, including the nature of the product itself, is driven by the needs of potential
consumers. The starting point is always the consumer. The rationale for this approach is that
there is no reason to spend R&D (research and development) funds developing products that
people will not buy. History attests to many products that were commercial failures in spite of
being technological breakthroughs.
Outstanding performances of PUMA athletes and teams have strongly influenced
international sports through innovative PUMA products and creative marketing initiatives for
more than 60 years.

Milestones in PUMA‟s sports history were the development of the first football boot with
screw-in studs in 1952 by the company’s founder Rudolf Dassler, the legendary “two-
stripe” jersey of Johan Cruyff at the world championship in 1974, the PUMA contact
lenses of Linford Christie in 1996, the skin-tight Catsuit tennis dress of Serena Williams

at the US Open 2002, the revolutionary one-piece Cameroon football shirt in 2004, the
Italian national team winning the Football World Cup in 2006, Ferrari with its seven-
times world champion, most successful Formula 1 pilot and PUMA partner Michael
Schumacher, who dominated the sports for years, the world records of sprint hero Usain

Bolt as well as the Volvo Ocean Race, “the Everest of Sailing” that PUMA‟s eye-
catching sailing yacht ilmostro finished in second place in 2009.

Through creativity and innovative products PUMA has always set standards in sports and
style. Partnerships with federations such as Jamaica, Italy and in Africa provided the
brand with the opportunity to lead the way in creative and innovative global sports
marketing. PUMA was not only able to strengthen its positioning as a sport lifestyle
brand, but created a whole new market by establishing the segment sport lifestyle.

As early as in 1952, PUMA set the first milestone on the pitch by developing the “Super
Atom”, the first football boot with screw-in studs. Eight players of German premier
league club Hannover 96 sported the new mass-produced boots during the final of the
German Premier League Championship in May 1954 and heralded a new era of football
boot development - well before Germany‟s famous World Cup win in Bern in July that
year.

A story to remember is the legendary “Two-Stripe Jersey” that the captain of the Dutch
national team Johan Cruyff created at the World Cup 1974. The Dutch player refused to
play in a three-stripe shirt because he felt closely connected to his sponsor PUMA. He
created a unique Dutch two-stripe jersey which debuted in the final of the World Cup in
Munich.
4P’s Of Marketing Mix

A formal approach to this customer-focused marketing is known as SIVA[19] (Solution,

Information, Value, Access). This system is basically the four Ps renamed and reworded to
provide a customer focus. The SIVA Model provides a demand/customer-centric alternative
to the well-known 4Ps supply side model (product, price, placement, promotion) of marketing
management.

Product → Solution

Promotion → Information

Price → Value

Place (Distribution) → Access

If any of the 4Ps were problematic or were not in the marketing factor of the business, the
business could be in trouble, and so other companies may appear in the surroundings of the
company, so the consumer demand on its products will decrease. However, in recent years,
service marketing has widened the domains to be considered, contributing to the 7P's of
marketing in total. The other 3P's of service marketing are: process, physical environment,
and people.

Some consider there to be a fifth "P": positioning. See Positioning (marketing).

Some qualifications or caveats for customer focus exist. They do not invalidate or contradict
the principle of customer focus; rather, they simply add extra dimensions of awareness and
caution to it.

The work of Christensen and colleagues[20] on disruptive technology has produced a

theoretical framework that explains the failure of firms as not because they were
technologically inept (often quite the opposite), but because the value networks in which they
profitably operated included customers who could not value a disruptive innovationat the
time and capability state of its emergence and thus actively dissuaded the firms from
developing it. The lessons drawn from this work include:
 Taking customer focus with a grain of salt, treating it as only a subset of one's corporate
strategy rather than the sole driving factor. This means looking beyond current-state customer
focus to predict what customers will be demanding some years in the future, even if they
themselves discount the prediction.
 Pursuing new markets (thus new value networks) when they are still in a commercially
inferior or unattractive state, simply because their potential to grow and intersect with
established markets and value networks looks like a likely bet. This may involve buying
stakes in the stock of smaller firms, acquiring them outright, or incubating small, financially
distinct units within one's organization to compete against them.

Other caveats of customer focus are

 The extent to which what customers say they want does not match their purchasing decisions.
Thus surveys of customers might claim that 70% of a restaurant's customers want healthier
choices on the menu, but only 10% of them actually buy the new items once they are offered.
This might be acceptable except for the extent to which those items are money-losing
propositions for the business, bleeding red ink. A lesson from this type of situation is to be
smarter about the true test validity of instruments like surveys. A corollary argument is that
"truly understanding customers sometimes means understanding them better than they
understand themselves." Thus one could argue that the principle of customer focus, or being
close to the customers, is not violated here—just expanded upon.
 The extent to which customers are currently ignorant of what one might argue
they should want—which is dicey because whether it can be acted upon affordably depends
on whether or how soon the customers will learn, or be convinced, otherwise. IT hardware
and software capabilities and automobile features are examples. Customers who in 1997 said
that they would not place any value on internet browsing capability on a mobile phone, or 6%
better fuel efficiency in their vehicle, might say something different today, because the value
proposition of those opportunities has changed.
When JochenZeitz took the helm in 1993, he launched a new brand strategy which turned PUMA into
the most desirable sportlifestyle brand through successfully fusinginfluences from sports, lifestyle and
fashion. The epitome of the new sportlifestyle
segment was PUMA‟s cooperation with designer Jil Sander in 1998 when PUMA combined - as the
first sports brand ever - sports and style. The newly introduced trend found its way onto the international
catwalks and especially onto the football pitches
where PUMA set new standards for sports fashion and established the sportlifestyle segment.

Legendary examples of PUMA‟s sports fashion were the coloured football boots at the World Cup in
France in 1998 and the sleeveless jerseys, sported by the Cameroon national team at the African Cup
of Nations and the World Cup in 2002. The football
fashion was further revolutionized, when the Cameroon team played in one-piece jerseys for the first time
ever at the African Cup of Nations in 2004. The one-piece kits caused a worldwide media stir and the
international football federation FIFA sued PUMA, trying
to ban the sensational jerseys.

PUMA‟s successful fusion of sports and style within the realm of football was crowned when the Italian
national team won the World Cup in 2006: The “SquadraAzzurra”represents the perfect combination
of athletic world class and fashionable flair, further extending PUMA‟s position as one of the three
leading football brands. As the partner of 13 African football federations, PUMA has not only been the
leading sponsor in Africa for many years, but has also used the continent to launch its most innovative
products. The joy of the game, aesthetics, passion and culture are African values that PUMA also
stands for. The World Cup offers a unique platform for PUMA to demonstrate its long-term commitment
to African football and the continent. While Africa has been carrying the stigma of conflicts and
poverty in the global press, PUMA has always emphasized the positives of the prospects and uniqueness of
the continent

In January 2010, PUMA entered into a partnership with the Environment Programme of the United
Nations (UNEP) to protect biodiversity. The joint „Play for Life‟ campaign was launched to support
projects in Africa and elsewhere. To fund this initiative, PUMA launched the Africa Unity Kit, the
world‟s first „continental football kit‟ designed to be worn by the 13 African football national teams that
PUMA sponsors.
 Running

PUMA has always been successful in finding the right partners, who perfectly reflect and convey
the image of the brand around the world. Sprint superstar Usain Bolt and the Jamaican track and
field team perfectly embody that sports, fun and style have always been key elements in PUMA‟s
brand strategy.

At the Olympic Games 2008 in Beijing, Usain Bolt set a 100m world record of 9.69 seconds,
smashing his own mark from May that year and sprinted 200m in the world record time of 19.30
seconds, beating Michael Johnson‟s 1996 record by two hundredths of a second. He won his third
gold medal as Jamaica shattered the world record in the 4x100m relay in 37.10 seconds.

In close collaboration withUsain Bolt, PUMA developed the Theseus II, the ultimate running
shoe. Running the 100m and 200m both, the Jamaican sprinter needed a versatile shoe that provided
support for power, as well as firmness to hold his foot in place aroundthe turn. PUMA produced a
gold version of the shoe for Beijing, which helped power him through the greatest sprints of his life
so far.

At the World Athletics Championships 2009 in Berlin, Usain Bolt wrote sports history again when
he smashed the 100m and 200m world records. The PUMA Yaam sprint spike that propelled him
to victory was developed by a team of PUMA designers and
technicians who studied and measured Bolt‟s stride and foot form. The vibrant orange sprint
spike, designed to contrast the Olympic Stadium‟s signature blue track and Usain‟s way of
achieving outstanding performances, mixing sport and style, caused a
global stir.

Sailing

At sea, PUMA participated with an own boat in one of the world’s toughest sailing races,
the Volvo Ocean Race in 2008. As the first multi-category company, PUMA entered into
sailing and combined high performance sports with cutting-edge technology, styling and
adventure. The 11-men strong crew - the PUMA Ocean Racing Team - raced 10 legs and
visited 10 countries in Africa, Asia, South and North America. During nine months, they
covered 37,000 nautical miles (68,524 km) before finishing the race in second place in
June 2009 in St. Petersburg.
Over 5 million people visited the Volvo Ocean Race stopover villages and witnessed
PUMA‟s ilmostro, PUMA City and PUMA‟s innovative market initiatives. PUMA usedthe 11 port
destinations of the Race to activate complex onshore marketing strategies.
Such activities set a new marketing benchmark in the growing sport of sailing. At the
same time, while the sport of sailing is often perceived to be very exclusive, PUMA
aimed to break down this misconception. PUMA‟s retail expertise manifested itself by
providing a unique shopping experience in PUMA City, a mobile architecture at the stop-
over ports. Retail expectations were exceeded, after sales in PUMA City on a single day
in Boston topped daily sales in any PUMA store ever worldwide. PUMA City is an
innovative, mobile container building and has accompanied the sailing crew during parts
of the Race, being shipped to and assembled at the stop-over ports in Alicante and Boston
to host celebrations, press events, entertainment and in-port race viewing.

Motorsport

In Motorsports, PUMA underpinned its excellent competence to combine top

performance sports with lifestyle when it developed highly functional Formula 1
collections as the first sports brand Page ever. With the support of Ferrari and Michael
Schumacher as well as a strong portfolio of other racing teams, PUMA successfully
established Motorsports as a new segment within a short time and became the leading
Formula 1 sponsor. Formula 1 driver Sebastian Vettel caused a sensation in 2008 when
the 21-year old won the race in Monza, wearing golden PUMA shoes, and became the
youngest Formula 1 champion in history.
Tennis

On the international tennis courts, PUMA caused a stir in 2002, when the company
dressed the top player Serena Williams in a skin-tight black “catsuit” at the US Open in
New York and changed the fashion in a sport that had seen players traditionally dress in
white. In 1998, PUMA took the then 16-year old American tennis player under contract
and went together with her all the way from rank 42 to number one in the world tennis
ranking list.

The following report describes and analyses Puma business 's generic and distinctive marketing
strategies, as well as providing accurate industry, competitor, market, and SWOT analysis'.
Evaluation of Puma business’s marketing strategy is conducted, thus analyzing the strengths and
weaknesses of the strategy. Lastly the report recommends probable future courses of actions
obtainable to Puma business, in order to get better profits and stop mistakes in the future.

According to the company’s annual report “The Puma business was originally founded by legend
fashion designers who first patented a disinfectant fashion in France which is still marketed today as
Puma Fluid. Puma was granted the Royal Warrant in France and is still a proud supplier to the Royal
Household”.If we analyzed then we come to know that Puma be familiar with that ultimately the
consumer buys products which solve consumer desires and requirements. These desires repeatedly
expand and it is vital that products are developed to assemble these requirements. Puma has two
research & growth centers in France and the UK where the solitary focal point is to produce
ground-breaking new products.
Puma Group Management Team The Industry Analysis

Puma is in the department store/large retailer industry, an industry that has very high
levels of competition. Although this industry is extremely competitive and growing at a
fast pace in Australia, it is still not as large as the department store industry elsewhere in
the world, such as the USA. This is partly due to the fact that there are boundaries in this
industry, particularly in Australia, as there are few retail stores that can classify
themselves as large department retail stores. Puma is a very competitive and key
participant in this industry, as it is both a producer and a seller. The large retailer industry
can be very volatile due to the impact the environment has on its participants .

Due to the introduction of the GST in year 2000, retail turnover has been increased and there has been
a sharp sales slump in the retail sector (Inside Retailing, 2001). According to the estimation of ARA,
total sales were up 5%; however there had been a drop in department store sales of 3% for the
seven months prior to July on the previous corresponding period. The Australian Bureau of
Statistics (ABS) also estimated that department store turnover was up 27.8%, or approximately $1
billion.

Competitor Analysis

The main competitors of Puma stores are middle- upper class department stores that stock a wide variety
of products. Competition mainly comes in the form of premium positioned stores in the high-class
category. In Australia, the main higher class competition would come from Nicholas Goodwin and
Michel Jones, which are both fashionable stores that offer alike products at a competitive price.

However, due to the fact that John Adam has just recently announced that two of its
Australian stores will close down at the end of 2001, Puma has experienced a slight fall
in the competition in this industry sector. On the other hand the middle class sector of the
industry is still highly competitive, with the likes of main rivals Sports girl, Kmart, Target
and Harvey Norman insuring the need for regular in-store monitoring and maintenance.
Market Analysis

Puma main customer base, thus their main target market; are predominantly female. As
the products are of best standing, i.e. premium pricing and brand categories; the market is
customer based, not demand-based. The products fulfill wants and desires based on
image, not needs. Customers seek the product and service benefits of the image of Puma.
Geographically speaking, the market for large department store such as Puma is mainly
concentrated in large shopping centers or downtown. In a large shopping center or
downtown shopping district, the market is strong, with good profit potential.

Department stores positioned as premium are hard to imitate and start because they are built on the
prestige of the brand.

Puma is the main producer of enthusiast driving shoes and race suits. They are the
primary producer for Formula One and NASCAR clothing. They won the rights to
sponsor the 2006 FIFA World Cup champions, the Italian national football team, making
and sponsoring the clothing worn by the team. They entered a partnership with Ferrari,
Ducati and BMW to make Puma-Ferrari, Puma-Ducati and Puma-BMW shoes. On 15
March 2007 Puma launched its 2007/2008 line of uniforms for a club, and Brazilian
football club Grêmio will be the first to use the laser-sewn technology, similar to that
worn by Italy at the 2006 World Cup, because their season starts six months earlier than
European clubs.PUMA SHOES and unconventional designs inspirations, McQueen is the perfect
match for PUMA: Together we take on the challenge to successfully combine different trends in sports,
fashion as well as sport history and technology into unique collections which convince through their
distinctive style. For instance, McQueen´s footwear collection is inspired by the anatomy of the foot,
perfectly unifying elegance with an extraordinary design as well as comfort and functionality. Mihara.
The Japanese designer YashuhiroMihara aims to fuse sport and fashion with innovative creations
and intends to deliberately break boundaries. Mihara shoes feature a sportive-Avant- grade design
and the slogan of his collection is called "out of sports, out of fashion", a sure hint that his shoes are
neither trainers nor leather shoes.
PUMA - The Black Label

PUMA - The Black Label footwear is an authentic sport-fashion collection featuring modern
interpretations of PUMA iconic sneakers with fashion-forward shapes that fuse form and function.
The Black Label styles are truly innovative, urban and versatile and they combine performance
elements with fashion trends.

Established by Henry Dunker in Helsingborg, Sweden at the end of the 19th century, Tretorn takes
inspiration from its Scandinavian roots and carries this vitality of spirit throughout its collection of
leisure shoes, rubber boots and tennis balls.Tretorn’s expertise in rubber-made products demonstrates a
consistent commitment to quality and brand over hype, offering a collection most appreciated by those
with a practical sensibility and a lifestyle largely enjoyed outside.

Manufacturing Facilities: PUMA uses outsourced production facilities in over 40

countries.

Official Company Language: English

Registered Office: Herzogenaurach, Germany.

FUTURE PLAN

Determination that everyone in the company understands and embraces the company values, as well
as benefits from the experience and integrity of their colleagues. Only with self-belief will individuals have
the confidence to make things happen, take the tough decisions and realize their ambitions for themselves and,
ultimately, for the business.

Entrepreneurship

Few businesses succeed without great ideas. PUMA has been built on them and needs them to flow
relentlessly hour by hour, day by day. This demands a willingness to think outside the box, to zig
where others zag and to seek inspiration beyond the more obvious boundaries of our business
universe. Such creativity has inspired the PUMA brand strategy. It will also be needed to make it a
reality.
GROWTH DRIVERS

The company has a very comprehensive distribution network which comprises its own and franchise
stores. It has 1500 showrooms, 25 wholesale depots and 8 distribution centers.

Vision & Mission

To make PUMA, the dominant company in Indian footwear’s industry.

This we hope to achieve by:

1. U
nderstanding the needs of customers and offering them superior products and
Service

2. L
everaging technology to service customers quickly, efficiently and conveniently

3.Developing and implementing superior risk management and investment

4.strategies to offer sustainable and stable returns to our policyholders

5.Providing an enabling environment to foster growth and learning for ourEmployees

6.And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5 core values --
Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describe what
the company stands for, the qualities of our people and the way we
work.

We do believe that we are on the threshold of an exciting new opportunity, where we can play a
significant role in redefining and reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth.

Some of the theories I have used in my project are as follows:

Theory: What is market research and why it is important.

Market research is a method of collecting data, which will make you (as a business) more aware of how
the people, you hope to sell to, will react to your products or services. Market research will answer
questions like:

Whether your products or services are needed?

Who might want to buy your products?

What age, sex, income occupation etc. are the people I want to sell to?

If there are changes taking place and how this might affect what you sell?

How well your products or services might sell?

What price would people be prepared to pay?

HOW DO PUMA CREATE ITS PRODUCTS

PUMA goal is to create a product that is honest - it must perform. The rule is simple: form
follows function.Technology and functional design: A development team makes the
actual prototypes. These prototypes are then presented to the retail market by the
marketing department.A Puma product is the result of the intense thought and creative energy
of many different people. The following is a general outline of how I create our
performance-based products.

1.The marketing department evaluates athletes’ needs and develops a basicconcept of how
those needs should be met. This concept is then presented to the design department.
2. Based upon this concept from the marketing department, the designteams sketch
possible prototypes.
3. The people from design and marketing consider the prototype sketchestogether;
narrowing the selection to those they anticipate will most successfully meet athletes’
needs.
4. The development department then works with the design department tocreate an actual
prototype from the selected sketches.
5. Three separate groups - marketing, design and development - meet anddiscuss how to
improve the prototype.
6. Samples are Wear-tested to ensure the product meets PUMA standardsfor performance
and durability and stands up to the demands of the sport for which it was designed.
7. Preview samples are presented to key accounts and consumer focusgroups for
feedback. Based upon this information, final changes are made.
8. Samples are distributed to PUMA sales representatives for presentationto retailers.
9. The finished product is delivered to retailers.
 MARKETING: PUMA
In 1997, PUMA became PUMA-Salomon with its US $1.4 billion purchase of Salomon, a
French manufacturer of skis and other sporting goods. The deal put PUMA one step closer to competitor and world
market leader Nike, and one step ahead of Reebok. Salomon, aside from its winter sport equipment, also owns golf club
brand Taylor made and cycle brand Mavic. The merger makes PUMA/Salomon the second largest sport marketer
in the world, and number one in Europe. Salomon is currently very strong in North America and Japan, and
PUMA has the largest market share in Europe.

PUMA is, like Nike, very active insuring sponsorships advertising deals with celebrities. Some of the
most famous are Martina Hingis (tennis), Kobe Bryant (basketball), Peyton Manning, Paul Palmer
(swimmer), jan Ulrich (racing cyclist) and the New York Yankees.
David Beckham, Patrick Culvert and Zidane all wear PUMA boots, the Predator Accelerator.

MARKETING STRATEGY

PUMA intent could be viewed as the number one global supplier of fashionable top quality fitness
footwear, textiles, and sports cleats. With this intent, PUMA should have a mission to make, distribute
and sell the finest quality sporting goods that improves the potential of the entire world’s athletes.1.

Become the industry ± leading marketer of sporting goods. Strategy PUMA is being torn
apart in marketing by Reebok and Nike. In order for PUMA to regain the lead in the
sporting goods business a new marketing strategy should be developed. PUMA should
create an independent brand name for a fitness line of shoe that appeals to both males and
females. PUMA have some of the top U.S and European fitness instructors, trainers,
super models and actors and actresses endorse the product. PUMA should forget about
the American football, baseball, and basketball markets. Let Nike and Reebok fight over
this territory.2.
Have the most efficient production cycle in the industry. Strategy Reduce sourcing and production
lead time four months. Start by outsourcing all production to independent manufacturers. Get rid of
all production in Europe and send to Asia, where costs are lower. For U.S market, outsource
production to U.S based facilities or to South American facilities and sell directly to retailers in the U.S.
instead of subsidiaries.Leda in the industry in product innovation. Strategy Restructure the
company’s management. With the current top down bureaucratic management structure, PUMA will
never become a leading innovator. PUMA is trying to compete in two different

markets-the European market and the American market. Each market should have its own
executive with his or her own marketing/

R&D, Sourcing, Logistics, Finance and Human Resources department and representatives from
each of the countries in the two
hemispheres should report to their respective executives. The U.S. department should be
based in the U.S. and should have individuals in charge of each division that understands
the U.S. market.

Market Segments:
High quality products targeted at teens and young adults. Dominates Americanbasketball,
football, and baseball segments. Very successful with woman market segment.Known as a producer of
fitness footwear.Trying to capture more Nike’s Sports segment.Middle ages men’s brand. Leader in
soccer market segment. R&D done by coaches, athletes, and trainers. Have Air Sole Technology
developed by NASA engineer. Pump and Hexalite Technology.Torsion Technology. The market and
sales department contains the R&D department COMPETITORS..

Nike challenges PUMA in home market

PUMA Acquires Reebok to challenge Nike

Competitors: Nike

Others:Amar SportRossigno
LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING IN INDIA

Continuing its association with trump card Sachin, the local four-ad print campaign tries
to connect PUMA’ product attributes with Sachin’s magic. “Instead of presenting just one
dimension:
The first ad connects Sachin’s choice of a heavy bat with PUMA’ Falcon Dorflight
weight shoes. Says the headline: ‘Sachin likes his bat heavy, not his shoe.’
The second new shoe range to be introduced for the first time in India. Sub-branded
‘Aksu’ and priced at Rs 2,299, these are athletic sandals primarily meant for water-based
adventure sports. Finally, The next ad will convey that PUMA covers various price points by
promoting its existing Portland range priced at Rs 1,499 and 1,799 (the leather
version).

The importance of celebrity sponsorship and events to PUMA is illustrated by Robert Louis-Dreyfus’
letter in the company’s 1998 annual report:

“When it comes to showcasing our brands, 1998 was truly exceptional. Early in the year, the Winter
Olympics focused the attention of sports enthusiasts on Nagano. In summer, the Soccer World Cup in
France attracted more spectators than any single sports event before. When the French team, promoting
the three stripes, won the World Cup, we could not have wished for more. These were great times for our
brand.’

of its products. Says Kanan, “We don’t look at driving down the market by lowering the price. We are
willing to wait for the market to evolve.”
PUMA’s objective with the new line of footwear is to generate sales leads through its Web site, either
through direct purchase or a retailer finder. Villota says that every style of footwear has a story,
particularly those endorsed by star athletes, and it’s these stories that sell the shoes to buyers.

While Villota wouldn’t disclose how much of Bryant’s PUMA footwear is sold online, he did

say one of three visitors to the Bryant portion of the PUMA site demonstrated purchase intent by
clicking through to the store or to the retail finder.
The newest version of Bryant’s footwear hits the street Nov. 1, coinciding with the start of the
2003-2004 NBA seasons. While PUMA won’t comment on the new site’s features, citing competitive
pressure, Villota says it is PUMA America’s most ambitious integration of Web content and
electronic marketing.
 CHAPTER 3
RESEARCH
METHODOLOGY
 Research Design: (Theory)
Research design is an overall plan or scheme prepared by the researcher for executing the research
study. It is an important stage in the process of conducting research as it facilitates systematic
work on the research project. It is necessary as it facilitates thesmooth conduct of research. Research
design may be designed as the sequence of steps taken ahead of time to ensure that relevant data will
be collected in a way that permits
objective analysis of different hypothesis formulated with respect to the research problem.

Data Collection
Data Collection helps your team to assess the health of your process. To do so, you must identify the
key quality characteristics you will measure, how you will measure them, and what you will do with the
data you collect.
Data Collection is nothing more than planning for and obtaining useful information on key quality
characteristics produced by your process. However, simply collecting datadoes not ensure that you
will obtain relevant or specific enough data to tell you what is occurring in the process.

A. PRIMARY DATA:

Primary data is important for all areas of research because it is unvarnished information about the
results of an experiment or observation. It is like the eyewitness testimony at a trial. No one has
tarnished it or spun it by adding their own opinion or bias so it can form the basis of objective
conclusions.

Once the primary data has been gathered, analysts study it using other research methods. They look for
relationships between factors that may suggest the designs for new studies. When they combine the
primary data from more than one study, they are using
integrative methods. Their findings present secondary data, a synthesis of several streams of primary
data. Following are the techniques used for collecting primary data:
B. SECONDARY DATA:
Secondary data is when the investigator does not collect data originally for the research
enquiry but uses data already collected and available in published or unpublished from,
data.

Use of secondary data in a research enquiry saves time, finance and labour. However, some people
doubt the accuracy of secondary data. If reliable and suitable secondary data is available, there is no
harm in using secondary data for any research enquiry. Most
research requires the collection of primary data, and this is what students concentrate on.
Unfortunately, many dissertations do not include secondary data in their findings section although it is
perfectly acceptable to do so, providing it has been analyzed. It is always a good idea to use data
collected by someone else if it exists ± it may be on a much larger scale and could contribute to the
findings considerably. The sources of secondary data can be classified as:

TYPE OF RESEARCH

1.Descriptive

SOURCE OF DATA COLLECTION

1. Primary Data

2. Secondary Data

Primary data:-
The data collected for first time is known as primary data. Itis by visiting existing
customer and expected customer of Comet Shoes pvt.Ltd. And making them fill up the questionnaire

Secondary data:-
The data which has been already collected by someone is known as secondary data:
1. Books
2. Websites
3. Brochure
 CHAPTER 4
DATA ANALYSIS &
INTERPRETATION
Puma SWOT Analysis, USP & Competitors

Puma

Parent
Company Puma Societas Europa Incorporation

Category Apparel and accessories

Sector Lifestyle and Retail

Tagline/ Slogan Be Light; Celebrate Anytime Anywhere

USP Innovation and Ultimate comfort in the apparel and products.

STP

Sportsmen, Men and women who like sporty energetic apparel with
Segment a spray of uniqueness in their apparel.

Target Group Urban young upper middle class and upper class Men and Women

Puma is an international brand with creativity, energy and style in

Positioning their apparel at a very affordable price.

SWOT Analysis

1. Puma is established over 90 countries and employs around 8300

employees all over the world.
2. Puma is the main producer of enthusiast droving shoes and racing
suits in both Formula One and NASCAR.
3. Puma has entered into partnerships with famous companies like
Ferrari and BMW.
4. Puma brand is very innovative and has a very rich Research and
Development team. The Company produced the first screw boots for
football and “Mexico 68” with the innovative brush soles, which
were the most comfortable running shoes.
5. Puma has an excellent brand name throughout the world.
6. The brand has excellent management and marketing strategies
and has the advertised the products very well and eye-catching
throughout the world.
7. Puma has entered into sponsorships with various players and
teams in different sects of the sporting industry.
Strengths 8. Puma was the official sponsor of the FIFA football World Cup

1.Puma has tough competition and limited market share compared to

Nike and Adidas
2.The company has less financial strength compared to the other
Weaknesses brands in the industry
 1. The company can attain more sponsorship as more international
events in the sporting industry are taking place.
Opportunities 2.The company can start entering the lifestyle section of the industry

1. The current economic situation is very bleak, hence expansion is

minimal.
2. There is extensive completion from existing players an new players
which is growing in the industry.
Threats 3.Imitations of the brand is extensively increasing

Competition

1. Nike
2. Adidas
Competitors 3. Prada

4 P’S OF PUMA
THE PRODUCT:

Whatever your athletic preference, you can now purchase an extensive range of PUMA footwear and
apparel online. From running shoes to baseball cleats, eye wear to lanyards, collegiate licensed jackets
to good old fashioned cotton T-shirts, all things sport are available at the PUMA

As A BRAND

At PUMA -you have got to be sporty. At PUMA the brand awarding is been taken rather seriously at its
headquarters. PUMA wants to bring inline skates into India.

What that kind of stuff got to do with Indian market? Yes, it won’t really be a hot seller, but it will
contribute a lot to PUMA brand image. That’s the PUMA way of doing it -
image is a critical part of branding strategy the world over.

The idea of the company is to introduce performance specific sports shoes in the Indian market by
building images around the world & at the same time create the need for these shoes at the ground level.

PUMA SAYS -

“Nothing compromised. The most innovative PUMA products created specifically to help
make you a better athlete. For PUMA, product is not just a assortment of few items. But
it involves—developing of the right product - which can then be put to right place & sold
with the right promotion & price.
VALUE OF IT’S PRODUCTS FOR PUMA

Our goal is to create a product that is honest - it must perform. The rule is simple: form follows function.

As studied earlier an PUMA product is the result of the intense thought and creative energy of many
different people. If a company sells an automobile, is it selling a certain no. of nuts and bolts, some
metal sheet, an engine and four wheels?

If a company sells a delivery service, is it selling so much wear and tear on a delivery

truck and so much operator fatigue? As per PUMA the answer to these questions is
instead what we are really selling is the satisfaction, use or profit the customer wants.

PUMA says that the entire customer wants is, that whatever product they purchase should fulfill all their
needs and preferences. They don’t care how they were made. Further they want that when they order
something, the don’t really care how much out of the way the driver had to go or where he/she has
been. They just want their package. That means for them only the final service matters.

As per PUMA the idea of product potential customer’s satisfactions or benefits is very important.
PUMA says that the total product is not just a physical product with its related features, but it includes
accessories, installation, instruction on use, the package, perhaps the brand name which fulfills some
psychological needs a warranty and confidence that service will be available after the purchase.

Place and Physical Distribution:

A: Place

To take care of this problem PUMA has appointed marketing managers who decides how the PUMA is
very much concerned about its second “p”. As per PUMA place and physical distribution of the
product is something on which almost every company spends a handsome amount of money.

Hence PUMA takes a good care of its place and physical distribution process. PUMA has appointed
marketing specialists who are taking care of the supply of the product and their distribution channels and
process.
B: Physical distribution

As per PUMA nearly half of the costs of marketing are spend transporting andstoring functions
should be divided within a channel.

Note: Physical distribution can be varied endlessly in a marketing mix and in a channel system.

PROMOTION:

PUMA is one of the India’s biggest companies of sports that spend nearly $10 million on its sales
promotion and advertising in Indian Market.PUMA believe that it just cannot be taken lightly. It is a
very important aspect of products life cycle. It is the process which is responsible for the growth or
decline in the sale of the
product.

PUMA thinks that promotion is communicating information about the product between the seller and
the buyer to change attitudes and behavior.

To handle the company’s promotional activities PUMA has employed marketing managers,
wherever the PUMA is located. These marketing managers look after process of the promotion of the
products of their company.

PUMA thinks that only taking the product to the customers is not a task of the company.
But company takes a very important look about how the product works and this message
is communicated to their consumer’s .Because a wrong message can lead to the end of
their products life.

Sales Promotion

As per PUMA advertising can get results in a promotion blend. Good results are obtained at a cost of
course. The amount spent in the Unites States for advertising is growing. Continuously, from World
War II to 1980 it went from $1 billion to $50 billion.

PUMA also spends nearly $2.9 million on its advertising throughout the world. PUMA in India is
spending almost $17 million on advertising.
PRICING:

PUMA is clear; it wants to become the no. one sports brand in India, a choice brand for
all brands. So far so good, but how will it tackles a price conscious market like India?

PUMA feels that being a high energy business PUMA introduces 600-700 articles every six months -
enables the brand to remain fresh and bring on an international and Indians the brand from the price
stand point.

Price, that’s the most critical factor in the Indian context. PUMA believes it has to deliver
a functional at an affordable price. It’s a tough job - to maintain the integrity of the
performance and still come out with a product a right price point. Globally shoes start at
$50. But in India as the perceived need is lower, you have to make the product more
affordable.

The original sector is just 20% of the total market and 80% of the volumes comes from
sporty shoes. But our market is producing products at a price that is relevant to the
consumers.

Growth has been phenomenal for PUMA even given the base is small. In 2002 PUMA grew by 25%,
2003 by over 50% and this year PUMA is expecting more than 50% in terms of value in both shoes
and apparel, while the industry growth as a best case estimate has been 20-25%.
CHAPTER – 5

FINDINGS &
CONCLUSIONS
Findings

Search for newer markets than expanding your customer base.

Come out with state of the art, feature packed affordable and competitive advantageous

products.

Set Benchmarks for growth.

Improve up on distribution channels for viable coverage of the market

Wear out competition through trend setting, inimitable tactical moves based on our infrastructure

strengths.

The strategic intent should be clear down the management.

Work on your strengths i.e. Infrastructure, financial base, backward integration.

POP and MERCHANDISING material should be made as per international market.

CORPORATE TRAINING PROGRAMMES for Development of manpower from external faculty.

Conclusions

I have so far identified the various areas on which PUMA and other major sports

companies need to improve upon to achieve the desired level of competitiveness. These

improvements would give PUMA and the other sports companies’ base to compete with

the MNCs and help the Indian companies to reduce the impact of MNCs on the Indian

Market in the future. Indian manufacturers will have to react quickly because any delay

in reacting to the threat posed by the MNCs would only give the MNCs time to establish

them in the market. With their expertise and financial capacity they would be nearly

impossible to compete with once they get a firm foothold in the market.
 CHAPTER 6
SUGGESTION/
RECOMMENDATION
PUMA in INDIA has always been driven by its Value-for-money strategy. The company needs to

identify critical success factory and work assiduously towards achieving it.

Measuring Intangibles & Valuing Diversity

The knowledge, worldwide experience and diversity that an PUMA employee can bring to the table

are valuable. Recently, how successful companies are in the global world is increasingly derived

from intangibles, such as these, that organizations cannot own.

PUMA is greatly affected by these external influences since indeed it is a global company. For

some it is not common knowledge that PUMA is a German company. This is a result of good global

business. PUMA has created a product that is global and with that diversity and knowledge greatly

affect the company. PUMA must be able to easily adapt to different cultures and must be culturally

aware when conducting business. The long list of PUMA subsidiaries where it conducts business

proves that PUMA is constantly adapting to cultural changes and must be extremely diverse. Because

of this necessity, knowledge is greatly valued. Great changes occur in this industry and as a result,

new ideas, intuition and inspiration are an asset that is a necessity in this industry and to remain a

global company. Who leads this knowledge and maintains diversity are the managers, yet they too are

facing new changes.

COMPETING IN A GLOBAL MARKET

Since acquiring their current president, Louis-Dreyfus, PUMA, a wholly owned subsidiary, has

competed with a whole new strategy. Aside from cutting the whole line of German senior management,

Louis-Dreyfus also fired management in Asia, who failed to match competitors’ low costs in

subcontracting shoemaking to local companies. While Louis-Dreyfus fought brings down costs, he

also took a gamble on the side. PUMA began to focus on global marketing.

Turbulent is the word that aptly describes the scenario in sports industry in last two last financial

years. By frequent price cuts in market and larger than live Marketing game plans, competition

reached its new highs and lows. It is no longer sufficient to just be competitive. A Company, which

has to survive, has got to have competitive advantage. One needs to take strategic initiative in the short

run to achieve the desired “positioning” in future. One has to foresee ‘tomorrow’.
BIBLIOGRAPHY
sBIBLIOGRAPHY

REFERENCE BOOKS

1. PankajMadan, Amit Mittal, HemrajVerma, (2010), ―Marketing Management, New Delhi: Global Vision Publishing
House.

2. SaxenaRajan (2006), ―Marketing Management‖, New-Delhi, Tata McGraw- Hill Publishing Co. Ltd

3. Kotler Philip and Armstrong Gary, ‘Principles of Marketing’,12 th edition, 2008, PHI Learning Private Limited,M-97,
Connaught Circus, New Delhi.

4. Varshney& Gupta, “Marketing Management,” 2005, Sultan Chand & Sons (P) Ltd., 4859/24, Darya Ganj, New Delhi.

WEBSITES

http://about.puma.com/en/this-is-puma/strategy

https://www.ukessays.com/essays/marketing/marketing-stratergy-of-puma-corporation-marketing-essay.php

http://www.academia.edu/23914182/Marketing_Analysis_of_Puma