““SportingSporting Goods Goods””

Detailed FindingsDetailed Findings

Consumers PerceptionsConsumers Perceptions Defining Sporting GoodsDefining Sporting Goods Current perceptions of companyCurrent perceptions of company Where consumers buy sporting goodsWhere consumers buy sporting goods

Consumers HabitsConsumers Habits Frequency of sporting goods purchaseFrequency of sporting goods purchase Importance of piece when purchasing sporting goodsImportance of piece when purchasing sporting goods Importance of interactivity in a sporting goods departmentsImportance of interactivity in a sporting goods departments Age differences in participation in sports and outdoor activities Age differences in participation in sports and outdoor activities Gender differences in sports and outdoor activitiesGender differences in sports and outdoor activities

Consumer wantsConsumer wants Ideal sporting goods store/department layoutsIdeal sporting goods store/department layouts Insights from in-depth interviewsInsights from in-depth interviews

Defining “ Sporting Goods ”Defining “ Sporting Goods ”

Tools for an active lifestyle.Tools for an active lifestyle.

Anything you could to possible to need to engage in Anything you could to possible to need to engage in sports activities, from different types of shoes and sports activities, from different types of shoes and clothing to actual equipment.clothing to actual equipment.

Both traditional sporting products plus hunting and Both traditional sporting products plus hunting and fighting products.fighting products.

Goods and products used for the products of physical Goods and products used for the products of physical activities.activities.

Key InsightKey Insight : Sporting Goods is difficult to define. : Sporting Goods is difficult to define.

•Industry Suppliers : Brands, manufacturers, suppliers and/or distributors (including

licensing, franchising and retail businesses) of sporting goods and services.

•Industry Supporters: Recognized federations, associations and/or firms related to the

sporting goods industry (such as trade fair organizers, consultancy companies, etc.) which are not directly engaged in the manufacturing, supply or trading of sporting goods and services.

•National or Regional Organizations: National or regional organizations constituted and recognized as

national or regional sporting goods governing bodies in any country throughout the world. Regional organizations can include their national federations in their membership.

Where Consumers Buy Where Consumers Buy Sporting Sporting GoodsGoods

Women are 63% more likely then men to buy Women are 63% more likely then men to buy sporting goods at target.sporting goods at target.

Men are 47% more likely to buy sporting Men are 47% more likely to buy sporting goods at specialty stores.goods at specialty stores.

34% of more men and 33% of women bought 34% of more men and 33% of women bought sporting goods at mass retailers in the last sporting goods at mass retailers in the last years.years.

Key InsightKey Insight : : Consumers are more likely to Consumers are more likely to purchase their sporting goods from mass purchase their sporting goods from mass retailers than specialty stores. Affluence retailers than specialty stores. Affluence plays a significant role in purchasing plays a significant role in purchasing patterns.patterns.

Frequency of Sporting Goods Frequency of Sporting Goods PurchasesPurchases

0

2

4

6

8

10

12

Weekly Monthly Every fewmonths

Once ayear

other

Frequency of Sporting Goods Frequency of Sporting Goods PurchasesPurchases

““Good quality equipment doesn't have to be replaced Good quality equipment doesn't have to be replaced that often”.that often”.

““Only when a sports season changes or when a family Only when a sports season changes or when a family member out grows something”.member out grows something”.

Key InsightKey Insight : Consumer Typically shop for sporting goods : Consumer Typically shop for sporting goods every few months, therefore, they want quality products every few months, therefore, they want quality products that will last through the season.that will last through the season.

Importance of price when Importance of price when purchasing sporting goodspurchasing sporting goods

I I don’t like to waste money on things I know I will ruin don’t like to waste money on things I know I will ruin quickly so inexpensive items are helpful.quickly so inexpensive items are helpful.

Price is a primary purchase decision criterion. The quality of Price is a primary purchase decision criterion. The quality of an item is often related to its price.an item is often related to its price.

The cheapest price isn’t always the best buy.The cheapest price isn’t always the best buy.

I’ll pay anything to get a good quality product.I’ll pay anything to get a good quality product.

I shop for value.I shop for value.

Specialty stores draw people with higher income.Specialty stores draw people with higher income.

Importance of interactivity in Importance of interactivity in a sporting goods departmenta sporting goods department

• Interactivity allows me to determine quality level Interactivity allows me to determine quality level of the itemof the item

• I want to know what I am buying before I have to I want to know what I am buying before I have to return it.return it.

Importance of interactivity in a Importance of interactivity in a sporting goods departmentsporting goods department

A majority of our respondents believed interactivity would A majority of our respondents believed interactivity would add to their experience when purchasing sporting goods.add to their experience when purchasing sporting goods.

Key InsightKey Insight : Interactivity in sporting goods departments : Interactivity in sporting goods departments helps consumers make educated purchasing decision.helps consumers make educated purchasing decision.

Age differences in Age differences in participation in sports and participation in sports and outdoor activitiesoutdoor activities• As people get older, they participates less in As people get older, they participates less in

sporting activities (particularly around the age sporting activities (particularly around the age 45).45).

Key InsightKey Insight : : Fitness and health are an emerging Fitness and health are an emerging trend for both children and adults. This trend is trend for both children and adults. This trend is affecting purchasing decisions for sporting goods.affecting purchasing decisions for sporting goods.

RecommendationRecommendation

► Specific sport or outdoor activity labels.Specific sport or outdoor activity labels.► Increase product quality, while keeping price intactIncrease product quality, while keeping price intact► Significantly increase the level of interactivitySignificantly increase the level of interactivity► Tout partnership with Gold’s GymTout partnership with Gold’s Gym► Carry name brandsCarry name brands► Provide athletic shoesProvide athletic shoes► Advertise in parenting magazinesAdvertise in parenting magazines► Sell seasonal equipmentSell seasonal equipment► Sell swimming accessoriesSell swimming accessories

Additional ResearchAdditional Research

• Swimming has the highest participation of Swimming has the highest participation of any sports.any sports.

• Hispanics purchasing power will increase Hispanics purchasing power will increase by 48% by 2011.by 48% by 2011.

• Baby boomers are leaving team sports and Baby boomers are leaving team sports and having at home fitness equipment.having at home fitness equipment.

• Children cause elevated ownership of Children cause elevated ownership of sporting goods.sporting goods.

• Moms and grandparents buy children Moms and grandparents buy children sporting goods. sporting goods.

Top 5 Brands in “Sporting Goods”Top 5 Brands in “Sporting Goods”

Nike – Value $10.7 Billion – Nike is the sports apparel Nike – Value $10.7 Billion – Nike is the sports apparel giant.giant.

Adidas – Value $7.3 Billion – All Day I Dream About Adidas – Value $7.3 Billion – All Day I Dream About soccer.soccer.

Gatorade - Value: $6.4 Billion – While not technically an Gatorade - Value: $6.4 Billion – While not technically an

“apparel” brand“apparel” brand Reebok – Value: $2 Billion – While Reebok is the official Reebok – Value: $2 Billion – While Reebok is the official uniform provider for the NFL and NHLuniform provider for the NFL and NHL

Under Armour – Value: $530 millionUnder Armour – Value: $530 million

1. Brands in Sporting Goods

Definition and ManufacturedDefinition and Manufactured

Puma meaning and definitionPuma meaning and definition► A large American carnivore, found from Canada to A large American carnivore, found from Canada to

Patagonia, especially among the mountains. Its Patagonia, especially among the mountains. Its color is tawny. Or brownish yellow, without sports or color is tawny. Or brownish yellow, without sports or stripes. Called also catamount, cougar, American stripes. Called also catamount, cougar, American lion, mountain lion, and panther or painter.lion, mountain lion, and panther or painter.

ManufacturedManufactured► Puma is based in GermanyPuma is based in Germany► But has factories in a number of countries including But has factories in a number of countries including

china, turkey, el salvador, and indonesia.china, turkey, el salvador, and indonesia.

PumaPuma

Industry Clothing and consumer goods manufacture.Industry Clothing and consumer goods manufacture.

Founded 1924 ( registered in 1948)Founded 1924 ( registered in 1948)

Founder Rudolf DasslerFounder Rudolf Dassler

Headquarters Herzogenauurach, GermanyHeadquarters Herzogenauurach, Germany

Products Footwear, Sportswear, Sports goods, Fashion Products Footwear, Sportswear, Sports goods, Fashion accessories.accessories.

Revenue €2.461 billion (2009) Revenue €2.461 billion (2009)

Operating Income €192.4 million (2009)Operating Income €192.4 million (2009)

Profit €128.2 million (2009)Profit €128.2 million (2009)

Employees 9,650 (end 2009)Employees 9,650 (end 2009)

Creation of PumaCreation of Puma

• Rudolf’s company Rudolf’s company changes its name changes its name to Puma to Puma Scuhfabrik Rudolf Scuhfabrik Rudolf in 1948, and in 1948, and became a public became a public company in 1986. company in 1986. listed on the listed on the Borse Munchen Borse Munchen and Frankfurt and Frankfurt stock Exchange.stock Exchange.

Puma : Shoe Ads Done RightPuma : Shoe Ads Done Right

File these under File these under creative ads puma creative ads puma has associated its has associated its shoes with real life shoes with real life animals in their animals in their latest ad campaign, latest ad campaign, and the results are and the results are quite eye-catching quite eye-catching to say the least to say the least continue reading continue reading for more pictures.for more pictures.

Present dayPresent day

Puma AG has approximately 9,204 employees.Puma AG has approximately 9,204 employees.

Distributed its products in more than 80 countries.Distributed its products in more than 80 countries.

For the fiscal year 2003, the company had a revenue of For the fiscal year 2003, the company had a revenue of €1.274 billion.1.274 billion.

Puma were the commercial sponsors for the 2002 anime Puma were the commercial sponsors for the 2002 anime series Hungry Heart Wild Striker, with the jerseys and series Hungry Heart Wild Striker, with the jerseys and clothing sporting the puma brand.clothing sporting the puma brand.

ControversyControversy

Organizations promoting fair trade and workers Organizations promoting fair trade and workers ‘rights criticize Puma’s employment practices in ‘rights criticize Puma’s employment practices in their developing world factories, predominantly their developing world factories, predominantly relating to workers in China, Turkey. EI salvador relating to workers in China, Turkey. EI salvador and Indonasia.and Indonasia.

2. Brand in Sporting Goods

DefinitionDefinition and Manufactured and Manufactured

Definition Definition ► All Day I Dream About Sports.All Day I Dream About Sports.

ManufacturedManufactured► Adidas manufactures their products in Adidas manufactures their products in

Herzogenaurach, Bavaria which is Germany. The Herzogenaurach, Bavaria which is Germany. The city it manufactures in is also the city where the HQ city it manufactures in is also the city where the HQ

is.is.

AdidasAdidas

Industry Clothing and consumers goods manufacture.Industry Clothing and consumers goods manufacture.

Founded 1924 (registered in 1949).Founded 1924 (registered in 1949).

Founder Adolf Dassler.Founder Adolf Dassler.

Headquarters Herzogenauurach, Germany.Headquarters Herzogenauurach, Germany.

Area served Worldwide.Area served Worldwide.

Revenue Revenue €10.38 billion (2009 ).10.38 billion (2009 ).

Operating income €508 million (2009).Operating income €508 million (2009).

Profit €245 million (2009).Profit €245 million (2009).

Employees 39600 (2009)Employees 39600 (2009)

Products Products

Adidas currently manufactures several running Adidas currently manufactures several running shoes, including the adistar control 5, the adistar shoes, including the adistar control 5, the adistar Ride, the supernova sequence and the supernova Ride, the supernova sequence and the supernova cushion 7, among others.cushion 7, among others.

AccessoriesAccessoriesAdidas designs and makes sandals, watches, Adidas designs and makes sandals, watches,

eyewear, bags, baseball caps, and socks. As well, eyewear, bags, baseball caps, and socks. As well, Adidas has a branded range of male and female Adidas has a branded range of male and female deodorants, perfumes, aftershave and lotions.deodorants, perfumes, aftershave and lotions.

Financial InformationFinancial Information in millions in millions of eurosof eurosYearYear 20022002 20032003 20042004 20052005 20062006

SalesSales 6.5236.523 6.2666.266 6.4786.478 6.6366.636 10.0810.0844

EBITDEBITDAA

532532 627627 725725 818818 10981098

Net Net resultresult

208208 260260 314314 382382 483483

Net Net debtdebt

14981498 946946 594594 551551 22312231

3. Brand in Sporting Goods

NikeNike

• Industry Designing and manufacturing sportswear Industry Designing and manufacturing sportswear sport equipment.sport equipment.

• Founded January 1964 as Blue Ribbon Sports 1978 Founded January 1964 as Blue Ribbon Sports 1978 as Nike,Inc.as Nike,Inc.

• Founder William J. Bill Bowwerman Philip H. Knight.Founder William J. Bill Bowwerman Philip H. Knight.

• Headquarters Washington County Oregon, united Headquarters Washington County Oregon, united statesstates

• Area served Worldwide.Area served Worldwide.

• Product Athletic shoes apparel sports equipment Product Athletic shoes apparel sports equipment accessoris.accessoris.

• Revenue US$19.2 Billion (2009).Revenue US$19.2 Billion (2009).

• Operating income US $1.87 Billion (2009).Operating income US $1.87 Billion (2009).

• Employees 30,200 (2009).Employees 30,200 (2009).

Marketing of Sporting goodsMarketing of Sporting goods

Cricketing GearCricketing Gear Bats, Balls, Gloves, Bats, Balls, Gloves,

Helmets.Helmets. Made from specially Made from specially

designed designed English & Kashmir willow, English & Kashmir willow, our batsour batsare well balanced and are well balanced and nicely curvednicely curvedwith a special bulge for with a special bulge for extra power.... extra power....

Inflatable BallsInflatable Balls

Footballs, Volleyballs, Footballs, Volleyballs, Basketballs, Rugby.Basketballs, Rugby.

Some of the worlds most Some of the worlds most popular games, football, popular games, football, volleyball, basketball etc have volleyball, basketball etc have evolved into a global sports. We evolved into a global sports. We have a wide range of inflatable have a wide range of inflatable balls which are of the highest balls which are of the highest quality and made with the quality and made with the latest approved materials latest approved materials

Thanking you