BySupreet Gill

Meenal GuptaKirti

Bhagesh

History• In 1924, Foundation of “Gebrüder Dassler Schuhfabrik”,

by Rudolf and Adolf(Adi) Dassler

• In 1948, the brothers split their business, Adolf called his firm Adidas after his nick name; Rudolf called his new firm Ruda - from Rudolph Dassler.

• In 1948, introduction of the PUMA Atom,

PUMA’s first football shoe

• In 1986, it became a public company , and was listed on the Frankfurt Stock Exchange

• PUMA is one of the world’s leading sport lifestyle companies that designs and develops footwear, apparel and accessories.

• It is committed to working in ways that contribute to the world by supporting Creativity, SAFE Sustainability and Peace, and by staying true to the values of being Fair, Honest, Positive and Creative in decisions made and actions taken.

• PUMA starts in Sport and ends in Fashion. Its Sport Performance and Lifestyle labels include categories such as Football, Running, Motorsports, Golf and Sailing.

• The PUMA Group owns the brands PUMA, Tretorn and Hussein Chalayan.

• The company distributes its products in more than 120 countries, employs more than 9,000 people worldwide and has headquarters in Germany, Boston, London and Hong Kong.

Logo• Puma logo grips a notion of strong and chic icon with

the help of a leaping animal and bold font. A distinguished impression is immediately cast on the spectator, narrating the kind of image the company possesses.

• Shape of Puma Logo:A leaping Puma, an animal known as cougar, panther or a mountain lion, is highlighted in the Puma logo. It summarizes the power beast-like nature of the firm and its products. The logo enhances the attributes of the firm’s reliability and its product’s aptitude in the international market.

Logo• Color of Puma Logo:

Puma logo is wrapped graciously in black hue which depicts immense supremacy and strength of the firm itself.

• Font of Puma Logo:The complete Puma logo is a sign of authority and confidence. The bold font featured in Puma logo projects the firm’s stability and prominence.

Puma Today• Puma AG has approximately 9204 employees and

distributes its products in more than 80 countries. • CEO and Chairman Jochen Zeitz since 1993. • Puma is the main producer of enthusiast driving shoes

and race suits. • It is the official sponsor for FIFA World Cup.• Puma has partnership with Ferrari and BMW.

Puma Facts• Puma AG is the third top successful company in the world of

sportswear.

• Puma AG manufactures athletic footwear (58.5% of 2007 revenue),apparel (34.8%), equipment and accessories (6.7%).

• At the end of 2007, the company ran 116 concept stores worldwide. Only 25.3% of its 2007 sales came from the Americas region.

• Puma AG is aggressively pursuing expansion opportunities in emerging markets as part of its growth strategy.

• Puma AG generated $3.8 billion in revenues in 2007.

Puma Products • Foot wear• Custom made shoes ,sports shoes • Fancy Shoes• Apparels• T shirts,Tracks,Boxers• Accessories• Gloves,Helmets,Water bottles

Puma Competitors

Prada Sports•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)

Puma Competitors

Nike Inc.•No. 1 sports brand in the world•US based: administrative activities, design and product innovation•Sub brands like “Tiger Woods” and “Michael Jordan”

Adidas Salmon AG•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

Comparison between Puma and Adidas

Adidas v/s Puma

PUMAPuma brand has become synonymous with fashion, style, and sport. Through fresh design, co-branding and partnerships with celebrities and famous designers.It has elevated their brand image so that it now competes with fashion brands as well as their traditional rivals in the sporting footwear industry. The Puma brand communication strategy is flexible across multiple categories, yet communicates innovation for an “active lifestyle”. To extend their brand Puma has created concept retail stores that enable people to experience the brand in engaging and compelling ways. Puma also engages customers through their Mongolian barbeque concept that enables customers to design and build their own footwear from scratch.

Adidas v/s Puma

ADIDASAdidas’s mission is to improve every athlete’s performance through innovation. To compete with the value propositions of their traditional competitors, Adidas has focused their brand communications in three different areas: sport performance, sport heritage , sport style.Adidas spends the majority of its effort communicating to the sport performance segment. In response to the “sports lifestyle” trend being led by Puma, Adidas has recently co developed product lines with famous designers and has focused on the timeless and classic nature of their brand.

Adidas v/s PumaPuma Adidas

Reason for Being

Mixing the influences of sports, lifestyle, and fashion

Improving every athlete’s performance through innovation

Value Proposition

Fits your active lifestyle Perform at the highest level

Reasons toBelieve

- Distinctive trend setting styles- Branded retail experiences- Co-developed celebrity lines - Co branding partnerships (Ferrari,- Partnerships with famous designers (Starck, Wanders)- Mass customization - Promotional events

- Footwear technology innovations- Automatic customization (Adidas 1)- Co developed celebrity lines (Stella McCartney)- Classic styles, tradition and heritage- Mass Customization (Adicolor)

Persona Mixing the influences of sports, lifestyle, and fashion

Clear, orderly, practical, hi tech, classic, sophisticated, sincere

Adidas v/s PumaPuma Adidas

Associations Fashion brands (Gucci, Armani, Dolce Gabbana)Fringe / extreme sportsMusic artists & movie stars

Elite Soccer players, soccer teams, NBA starsHip hop artists (Run DMC)Mainstream sports

Range ofAuthority

Performance & casual footwearApparel & accessories

High performance footwearPerformance & casual apparel

Audience Anyone who leads an active lifestyle Anyone who plays sports

Relationship Hip friend who shows you a good time Respected coach

SWOT Analysis

Strengths Opportunities

Experience in R and D Fitness hype

Branding Technology

Management and International Strategy

Acquisitions and sponsorships

Weakness Threats

Missing Sports Segments Actual economic situation

Low financial resources compared to rivals

High competition and imitation of products

Strength• First, the company's financial position is extremely strong.

The financial growth of PUMA has been phenomenal. Secondly, Puma is more diversified than the competition

• Puma's brand image stands for quality, the latest technology and prestige. The company has been in business for a longer time than any of the competition, and the company has been able to create favorable brand recognition.

• Puma’s top management is highly marketing oriented, and most of the key personnel come from a marketing background. This is strength in this business, since the industry is market driven instead of product driven. Also, an increase in demand is the expected market trend.

• Puma is a global brand.

Weakness• It is that it doesn’t promote much. There are not much of

Promotional Activities being done by the company. Not much advertisement is done. Company should look for the same.

• The organization does have a diversified range of sports products.⇒ However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes.

• The retail sector is very price sensitive. However, most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consume.

Opportunities• The brand is fiercely defended by its owners whom truly

believe that Puma is not a fashion brand.• The business could also be developed internationally,

building upon its strong global brand recognition.• For example, emerging markets such as China and India

have a new richer generation of consumers. There are also global marketing events that can be utilized to support the brand such as the World Cup, The Olympics, IPl, and Soccer World Cup.

Threats• To keep-up with the competition's penetrating efforts will

cost a lot of money and put a lot of pressure on marketing and research and development. Also, the short product life cycles play an important role in the return on investment in a particular product line. Furthermore, weakening markets may be a serious threat.

• Puma is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Puma may be manufacturing and/or selling at a loss.

Success Factors• Strong presence: sports and lifestyle/fashion market.• Products meeting market demand.• High innovative and qualitative products.• Big distribution network.• Harnessing resources and experiences.• Ample knowledge in R & D.

Financial Highlights

Financial Reporting:•PUMA abides by the International Financial Reporting Standards "IFRS", and reports•Its earnings on a quarterly basis.

Business:•PUMA is engaged in the development and marketing of a broad range of sport and•lifestyle articles including Footwear, Apparel and Accessories.

Financial Highlights

Distribution:•PUMA distributes its products in more than 130 countries.

Total Revenue:•PUMA’s revenue for the fiscal year 2008 was €2,524.2 million.

Sales

The sales breakdown for the fiscal year 2008 by segment was as follows:Consolidated Sales in % of Consolidated SalesFootwear: €1,434.3 million 56.8 %Apparel: €899.3 million 35.6 %Accessories: €190.6 million 7.6 %

€2,524.2 million 100% 

Future of Puma• It aims to be the most desirable Sport lifestyle Company.• Aims at bolstering its position as one of the few true multi-

category brands, and at making effective use of the many opportunities offered by the Sport lifestyle market in all categories and regions.

• It plans to evolve the organization.

• Qualitative growth and a long-term strengthening of brand appeal will be given priority, instead of growth at any cost.

• PUMA plans to evolve the organization through the fostering of unique company values, all compatible with the personality of the brand. The can be best summarized in four words: Passion, Openness, Self-belief and Entrepreneurship.

Passion• It is not a business that manufactures and sells soap powder

or ballpoint pens or instant coffee. It is a business rooted in the passionate world of sporting endeavor. The history of the brand resonates with the echoes of great athletes and legendary performances, celebrated in stadiums across the globe. PUMA makes products designed to facilitate the individual achievements that evoke the most passionate responses.

Openness• Today's marketplace is one of the fastest changing and

dynamic on the planet. To respond quickly and effectively in this environment demands a culture of openness, where opinions can be shared without fear of blame and where old wisdom can be questioned without the fear of antagonism.

• In this culture, respect and understanding flourish naturally, team workflows seamlessly, barriers dissolve and a much over-used word, empowerment, takes on real meaning.

Self-Belief• Global businesses face new challenges every day. It is the

quality of the people in these businesses and their belief in their own abilities that enable these challenges to be overcome. PUMA's recognition of this is reflected in its 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, 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.

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