INTRODUCTION

Puma is a highly respected and regard brand across the globe. Indians now
have the chance to become a part of this leading fashion and sporting brand.
It aims first, at analyzing the sports shoe industry India and finding a place in it
for Puma. It then sets out to describe the target audience for the product range
and finally suggests a host of marketing strategies and activities that will help
Puma to achieve its target of becoming the #1 sports shoe brand in India.
Puma is the world's #3 sportswear manufacturer. It has a longstanding historic
rivalry with the #2 manufacturer Adidas, not least because the two companies
were founded by brothers Rudi and Adi Dassler. Area of production covers of
maximum Sports and end of fashion products. Product of sports of involves
Football, Running, Motorsport, Golf and Sailing.
PUMA has started true to its four cornerstones: heritage, sport, technological
innovation and design over the years. The brand is focusing on bringing
distinctive designs and a global outlook to each product range by blending
influences of sport, lifestyle and fashion.
This fusion is known as Sport lifestyle. PUMA views sport as a philosophy on
life one that emphasizes fitness, wellness and simply living an active life.
Since Sport can be different things to different people, PUMA approaches it in
a greater-lifestyle context, while not compromising performance. This is
exactly what the brand means when it speaks of Sport lifestyle.
The study then goes on to the customer analysis section. The customer base
is identified and various segments are pointed out. Various criteria and factors

have been taken into consideration while segmenting the market. We have
also tried to ascertain why customers buy these products, how they choose,
and what factors matter most when making their decisions.
Before moving onto the portions dealing with the strategies and marketing
plan proper, some assumptions are made. The rationale behind these
assumptions, dealing with market potential and sales forecasts is clearly
defined.
Following the section on planning assumptions, the report moves on to the
crux of the matter the marketing plan to be followed by Puma in India. Firstly,
the objectives behind this plan and the core strategy are stated. Customers to
be eventually targeted are described and compared with competitors
customer targets. After starting the objectives and reasoning behind them, the
actual marketing programs are described in detail. This includes aspects such
as pricing, advertising, promotion, sales, channels, and the company website.
Suggestions are made on each and every one of these aspects;
improvements and innovations are recommended.

RESEARCH OBJECTIVES AND SCOPE

OBJECTIVES OF STUDY
The main objectives of the study are:
1. To analyze the marketing strategies of Puma in footwear and sports segment
2. To study various sales strategies and know about the current strategies keeping in
mind the cut throat competition.
3. To find out the customer satisfaction level.

SCOPE OF THE STUDY

1. It helps to know that which publicity media gives maximum retention to the
customers.
2. The study also helps the company to improve their standard of service &
handle the competition in the near future.
3. It also helps in putting in possible improvements, additions, and new
strategies and offers the customers.
4. It also puts a detailed insight into the different aspects of the company,
such as manufacturing, marketing, sales promotion, etc.

COMPANY PROFILE
Puma is one of the biggest international shoe brands in the world in the
leagues of Nike, Reebok and Adidas. Puma India was set up in 2005 and this
was an advantage for it as the German brand became one of the first
international shoe brands in the country. But then in the last 5 years, how
many times have you seen a Puma commercial or huge billboard
advertisement or heard a jingle? I am sure you can count on your fingers. But
that would surely not be the case with say a Reebok or a Nike!

Whats the difference with Puma?

Puma has always gone for a subtle branding and communication strategy to
target its customers in the age groups 16-25 years the ones who use their
products the highest
Rather than go overboard with TV, Billboard or print advertising, Puma has
always concentrated on digital as well as in store branding and retailing.
Positive word of mouth from satisfied customers is what Puma has always

tried to achieve as its main communication strategy as this purchase is a high

involvement category.
Pumas strategy is built on left brained communication as it explains the
concept of the brand at a level from which one can form opinions and
conclusions. This gives an option for a person to be judgemental / non
judgemental.
Puma desires to be the brand for people who want something to show off as a
status symbol or to satisfy their esteem needs. Early adopters would leave a
brand they consider as desirable if it starts appearing anywhere and
everywhere.
Rather than specially placing a product by its name in a movie, Puma India
concentrates on building attention or awareness about the brand without
mentioning the name. Since the brand appeals to fashion as well as sports
conscious individuals, it strongly relies on digital advertising.

MISSION
Puma has the long term mission of becoming the most desirable and
sustainable sports lifestyle company.
HISTORY
Puma AG Rudolf Dassler Sport, officially branded as PUMA, is a major
German multinational company that produces high-end athletic shoes, lifestyle
footwear and other sportswear. Formed in 1924 as Gebrder Dassler
Schuhfabrik by Adolf and Rudolf Dassler, relationships between the two
brothers deteriorated until the two agreed to split in 1948, forming two
separate

entities, Adidas

and

Puma.

Puma

is

currently

based

in

Herzogenaurach, Germany.
The company is known for its football shoes and has sponsored acclaimed
footballers, including Pel, Eusbio, Johan Cruijff, EnzoFrancescoli, Diego
Maradona, LotharMatthus, Kenny Dalglish, Didier Deschamps and Gianluigi
Buffon. Puma is also the sponsor of the Jamaican track athlete Usain Bolt. In
the United States, the company is probably best known for the suede
basketball shoe it introduced in 1968, which eventually bore the name of New
York Knicks basketball star Walt "Clyde" Frazier, and for its endorsement
partnership with Joe Namath.
Following the split from his brother, Rudolf Dassler originally registered the
new-established company as Ruda, but later changed to Puma.[3]:31 Puma's
earliest logo consisted of a square and beast jumping through a D, which was

registered, along with the company's name, in 1948. Puma's shoe designs
feature the distinctive "Formstripe",[3]:33 with clothing and other products
having the logo printed on them.
The company also offers lines 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 AG has been
part of the French luxury group PPR.
SUCCESS
Under Zeitz's leadership the company initiated a fundamental, market-oriented
"fitness program" that included rigorous cost cutting and reorganization
measures. Inflexible structures were replaced, as was the case when the
purchasing and product development departments were merged. Several
warehouses were replaced by a central distribution center, and all
departments became profit centers.
Future of Puma India
Puma has tied up with Rajasthan Royals and Deccan Chargers and is also the
official kit supplier for the IPL. After starting many digital campaigns this year,
Puma India plans to go for special TV innovations during the IPL next year.
What is most important in the long run for Puma is to communicate the legacy
of the brand to the customers / prospective customers. Without that it would be

really difficult for the brand to sustain itself and it may force it to go the
conventional above the line advertising route!
RECENT MARKET SITUATION
Puma Company recently announced the details of the so-called "back attack"
project, which aims to make an annual profit of 40 billion Euros in 2015, whose
profit was20 billion Euros last year . As part of the program, Puma, the
sporting goods manufacturer, announced that it would get the full control of the
joint venture retail in China by the year2012, after buying a minority
stake(49%) in Chinese market,. Puma plans to make China as the largest
rising market.
Puma, the German sports goods maker, issued a reminder to raise product
prices, just did the same thing as its rival Adidas and Nike, which is caused by
the rising cost of commodities and wages .Puma, ranks the world's third
largest sporting goods maker after Adidas and Nike, says the cost increased in
2011 means its net profit can not keep up with the sales growth, thus its profit
will be reduced.
Although the result is acceptable, the prospect is worse than expected, it is
mainly because they have decided to carry out more investment in this brand.
"An anonymous analyst says As we know, Puma Group sponsored the
world's fastest man --- You Seen
Bolt. As for its representatives, Puma only invited different sportsmen from
about 70s, such as the basketball star, CLYDE ,the Tennis star, Villars ,the
Soccer star, Pele and the Racing star, Betty. On October 15, 2010, the local

Provincial Public Security Bureau police received a clue: Ningbo Customs

found 6 export items of a company in Qingdao does not match to what its
customs clearance of the actual name of the goods when examined their
samples. After police arrived at Ningbo they found that the goods were
approximate 6 items whose value reached13 million, including the LV (Louis
Vuitton ), ADIDAS,PUMA, NIKE (Nike), CHANEL, LACOSTE, G & A (George
Armani), there were more than 20 international brands of bags, hats and other
merchandise. However, such a large number of high-end luxury goods, none
was a real thing, there were counterfeits, civilian police found the related
person, and examined the trade mark; the goods were affirmed the fake
knockoff. We can see that Puma takes many strategies to compete with its
competitors. It is struggling to increase its net profit, but some bad guy just
makes use of it. There are so many such things happening around us every
day, so we should have an eye for the goods when you are in the store. In
order to choose the right things, next time I will tell you some ways to identify a
real thing of Puma.
ADVERTISING AND MARKETING HISTORY
Puma's restructuring was but one part of its new success story. The other was
its innovative marketing plan. At its core was the positioning of the Puma
brand as an international performance sports brand for high-quality athletic
shoes, sport textiles, and accessories. The company also based its innovative
marketing concepts on the latest trend research, earlier ignorance of which
had in part caused Puma's past downturns.

As a result, Puma launched the "Puma-Offensive '95," a marketing program

with four key areas of activity. The first was based on the revival of the classic
Puma suede shoes in the trendy clubs of New York, Los Angeles, and San
Francisco. Puma developed a collection of shoe "originals" in various colors
and matching textile collections targeting fashion and trend conscious youth.
The second element of the marketing offensive was the Puma "World Team."
Top sports figures, such as German soccer star LotharMatthus and Jamaican
sprinter MerleneOttey, represented Puma products in an advertising
campaign. The third piece in Puma's marketing mix was known as "Replica," a
line of "fashions for fans" made available through sports retailers and soccer
clubs.
One of the most successful elements of Puma's concerted marketing effort
was the Street Soccer Cup, a worldwide street soccer competition first
organized in 1994. The idea was developed in cooperation with Leonbergbased advertising agency Godenrath, Preiswerk& Partner (GPP). In 1993 the
"street ball" wave had become immensely popular, as kids began storming
Germany's courtyards, playgrounds, and parking lots to play pick-up games of
basketball. Puma and GPP worked together to popularize street soccer, which
was characterized by its favoring of technique and finesse over athleticism, its
focus on casual fun rather than club regulations, and its preference for free
style dress over uniforms. New rules for the game had to be established as
well. Street Soccer was played in the street on a concrete or asphalt surface,
not on a grass field. The 20-by-14 meter field was bordered by a fence. Four
players plus one reserve player stormed two goals. Street Soccer was played
in two age groups: ages 10 to 13 and ages 14 to 16.

The event campaign was carried out in cooperation with the major German
sports magazine Sport-Bild and was supported by retail sporting goods stores.
Other prominent German companies also joined Puma as sponsors.
Germany's teenagers embraced the idea. In fact, demand far exceeded
supply, and thousands of registrations could not be accepted. About 31,000
youngsters between age 10 and 16 kicked the ball in over 6,000 teams with
names like "Magic," "Street Attacks," and "Turkish Brothers." Over 250,000
people watched the games at almost 200 events. The finals were played out in
front of the Reichstag building in Berlin. The success of this innovative concept
encouraged Puma to continue it on an international scale in 1995. The Street
Soccer Cup '95 was also played in France, Hong Kong, and Tokyo. Puma
introduced a new line of Street Soccer shoes and a collection of colorful
clothing for players and spectators. All told, approximately 800,000 people
watched 70,000 kids playing soccer at more than 400 events during this Puma
event.
PROMOTION
Based on our study of other brands, We suggest that Puma may implement a
strong Advertising strategy. Sales promotion will be secondary..

Promotional campaigns will be partially outsourced.

Advertising will be consistent with other campaigns

Sales promotions and public relation strategies will work together to

inform customers of new products, to encourage an image of
community involvement for Puma, and to limit environmental impact.

MERCHANDISE IN PUMA
CATEGORIES

SUB CATEGORIES

CATEGORY ROLES
The Category Role determines the priority and the importance of various
categories in the overall business.
There are 4 types of category roles_
a)
b)
c)
d)

Destination
Routine
Occasional / Seasonal
Convenience

But only 3 are applicable in our brand which are_

a) Footwear forms the Destination category as_
It is the primary category provider and help define the retailer as the

store of choice by delivering consistent, superior target consumer value.

It leads in areas of turnover, market share, consumer satisfaction ,

service level and operating expense management.

b) Apparel forms the Routine category as_
It helps develop the retailer as the store of choice by delivering
consistent, competitive target consumer value.
It plays a primary role in delivering profit, cash and ROA.
c) Accessories form the Convenience category as_
It helps to be a category provider.
And help reinforce the retailer as the store of choice by delivering good
target consumer value.

LITERATURE REVIEW
CONSUMER BUYING BEHAVIOR
Understanding the buying behavior of the target market is the essential task of
marketing management under marketing concept. The consumer market
consist of all the individuals and households who buy or acquire good and
services for personal consumptions. The buying behavior tries to find out the
answers for the questions, who buys? How do they buy? Where do they buy?
Do they buy?
(A) FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR
There are four major factors that influence the buying behavior such as
cultural factors, social factors, personal factors, and psychological factors.
i.

CULTURAL FACTORS: Culture is the most fundamental determinant of

a person wants and behavior. Values, perceptions, preferences, and
behavior are the main variable under culture of an individual. Each
culture

contains

sub-culture

like

nationality,

religious

group,

geographical area, and linguistic divisions etc.

ii.

SOCIAL FACTORS: A consumer behavior is also influenced by social

factors such as the consumer reference group family and social roles
and status.

iii.

PERSONAL FACTORS: A buyer decision is also influenced by his or

personal characteristics, notably the buyers age, lifestyle, occupation,
economic circumstances etc.

PSYCHOLOGICAL FACTORS: a person buying choices are also influence by

four major psychological factors such as motivation, perception, learning belief
and attitudes.
(B) BUYING DECISION PROCESS
It includes buying roles, types of buying and steps in buying process.
I.

BUYING ROLE

The buying role could be classified into four parts. These are initiator,
influencer, decider and buyer.
II. TYPES OF BUYING BEHAVIOR
Consumer decision taking varies with the type of buying decision. There are
four types buying behavior such as Complex buying behavior, Habitual buying
behavior, Variety seeking buying behavior.
III. STAGES IN BUYING DECISION PROCESS
Here are five stages in buying decision process namely problem recognition
search, evaluation of alternatives purchase decision and past purchase
behavior.
NEED RECOGNITION
The buying process starts with the buyers recognition of a problem of need.
The buyer sense a difference between his actual state and desired state.
INFORMATION SEARCH

There are different sources from where a consumer can gather information like
personal sources commercial sources, experimental sources.
EVALUATION OF ALTERNATIVES
After gathering information about different products the customer will be in a
fuss as to choose which product among the mainly alternatives consumer
usually evaluate the alternatives on traditional basis, on the basis of utility
function etc. from the many alternative consumers at last choose the best one
for him.
PURCHASE DECISION
A consumer who decides to execute purchase intention will be making up to
five purchase decisions.
POST PURCHASE BEHAVIOR
After purchasing the product and services the consumer will experience some
level of satisfaction or dissatisfaction with the product and services that will
influence subsequent behavior. If consumer is satisfied he may show the
probability of buying the product the next time, satisfied customer will say
good thing about the product, proving the statement that "satisfied customer is
the best advertisement. "The dissatisfied customer, may take some action
against it. They may try to reduce the dissonance by abandoning returning the
product.
Understanding consumer needs and buying process is the foundation of any
company. By understanding how buyers go through problem recognition,

information search evaluation of alternatives, the purchase decision and post

purchase behavior marketers can pick up many clues as to how to meet
buyers need.
WHO ARE THE CUSTOMERS?
In India, Puma shoes are targeted towards the higher income group and on
the basis of the different sports played in the country. Customers of sports
shoes can be segmented into various categories. Various criteria can be taken
into consideration and segmentation can be done according to a number of
factors. Some of the identifiable segments are on the basis of Gender, Age,
Sports / Fashion, Geographical Location, Perceived Benefits and Income.
Gender
Puma shoes are available for both men and women. There are exclusive
product ranges, made specifically for each gender. Often the same shoe
comes in a male and a female model, differing in aspects like color and size.
This differentiation is necessary, as these shoes are not simply used for sports
but for fashion as well. Hence specific designs are necessary for the sexes to
complement the clothes worn by each of them. However, a drawback is that in
India there are fewer models available for women than in other countries.
Age
Puma has also divided its product offering and customer base according to
age. There are separate designs made for children - colorful and flashy, and
more sober looking models for older people. In fact there are certain designs
that are available only for children and come in smaller sizes.

Sports/ Fashion
As mentioned before, branded sports shoes in India have a dual purpose they are used for sports as well as lifestyle products. As a result, segmentation
can be done on this basis. For those using these shoes as fashion
accessories, anything that looks good would be adequate. But those using
them for a specific purpose need to be divided into further segments based on
the sport, namely Running, Tennis, Cricket, Soccer, Basketball and others.
Geographical Location
Puma has adopted a strategy to market and sell its shoes and other products
mainly in metropolitans and other big cities. The reason for adopting this
strategy was that the pricing of the shoes was such that they could be targeted
only towards the high income and fashion conscious groups. For them the
market is concentrated mainly in these areas. Hence all Puma showrooms,
franchisees are located in the main urban centers of the country.
WHAT DO THEY BUY (BENEFITS)?
For the two broad categories of customers, two broad sets of benefits can be
associated with Puma shoes. For those who look upon the product as sporting
gear, comfort and weight would be paramount. These two factors would
appear on the top of their list of priorities in choosing a sports shoe. They
would want a comfortable and lightweight pair of shoes that enhances their
performance on the field. Brand name and looks will be of secondary
importance. Features such as the Air System and anti-shock soles will be
value-added features. There would also be a psychological benefit involved.

Armed with the knowledge that (s)he is wearing the same pair of shoes as
his / her favorite sports person, (s)he might get motivated enough to perform
better than average.
The other category of customers, i.e. those who buy them for fashion and style
would put good looks and brand image above everything else. The image that
the Puma brand has created for itself has made it one of the most sought after
names in the world. Everyone would love to possess one and get noticed in
one. Such people would even be ready to compromise a little on comfort and
quality to acquire a pair that looks great and has that powerful brand image. In
this event the sports shoe does not remain a sports shoe; it becomes a
fashion accessory with a sporty look.
HOW DO THEY CHOOSE?
While choosing the right kind of shoe for themselves, consumers have many
aspects to consider. This, of course, depends on the consumer. The purchase
of any sports shoe is dependant on the buying and spending power of the
customer, which directly reflects the purchasing power of the consumers. This
is especially true in case of children. To complete the cycle, we can specify
five different buying roles that are applicable
1. Initiator (identifies the need for the product)
2. Influencer (has informational or preferences input to the decision)
3. Decider (makes the final decision through budget authorization)
4. Purchaser (makes the actual purchase)
5. User

In the case of Puma shoes, the consumer type that goes through the above
cycle are the children. In this segment one can draw a differentiation line
between the customers and users of the product. The need for the product is
felt by the child and fulfillment of the need is done by their parents. Here the
buying behavior of the user depends on the purchasingHaving narrowed
things down, the category to be dealt with in this context is the Indian sports
shoe segment. A large fraction of the sports shoe industry, indeed the shoe
industry in the country belongs to the unorganized sector. Our focus will be on
the organized sector only i.e. branded sports shoes.
A key point about the sports shoe industry in India is that most of the sports
shoes sold are not used for sporting activities. Such shoes are mainly looked
upon as fashionable footwear or accessories. This is primarily due to the
attractive and flamboyant appearance and comfort that these shoes provide.
Many users view them as all-purpose and all-weather shoes. At the same
time, sports shoes are also used for what they are meant for. People serious
about their sports make it a point to possess and use a pair of shoes made for
the particular sport (s)he is involved in. This makes one thing clear in selling
sports shoes in India, it will not be adequate to target only the sports persons;
the non-sporting segments will also have to be paid attention to.
CATEGORY ATTRACTIVENESS
Aggregate factors
Size: The Indian footwear industry is largely in the hands of the unorganized
sector. The size of the industry is Rs. 70 billion in value terms and 620 million
pairs in terms of volume. Of this 100 million belongs to the organized sector. In

addition 40 45 per cent of the organized sector is composed of canvas and

rubber shoes, mainly sports shoes. Of this, about 35 per cent can be
estimated to fall under the category of the premium sports shoe segment. That
means that the total market size of the premium sports shoe segment in India
is approximately 35 million pairs.
Growth: The footwear industry as a whole is growing at a rate of 10 12 per
cent per year. No clear-cut data regarding the growth of the sports shoe
segment is available, but the growth rate is expected to be higher than the rest
of the industry.

Since the phenomenon of international brands like Nike,

Reebok, Adidas and Puma being available in the Indian market is reasonably
recent, there are still a considerable number of first-time buyers in the country.
This coupled with the growing population and the increasing number of young
people in the country, we can expect a growth rate of about 40 per cent in this
segment.
Life Cycle Stage: If one were to place premium quality sports shoes in a
product life cycle graph in the Indian context, one would find it in the period of
rapid growth. The rage of possessing a pair of high quality and expensive
sports shoes has just caught on and more and more international players are
expected to enter the market. The market is therefore expected to grow even
further and it will be a while before the product reaches the phase of maturity.
Cyclicity: The sports shoe industry in India as well as around the world
displays a direct cyclicity with major sporting events of the world. There is
generally an increase in sales during the Olympics and the Soccer and Cricket

World Cups. Following these upsurges in sales, there are usually periods of
low sales.
Seasonality: Again, the demand for sports shoes, as a whole is not really
seasonal in nature. However, if we go deeper and look at individual models or
shoe-types within the sports shoe industry, we may notice the slightest
semblance of seasonality. For instance, soccer shoes are likely to enjoy more
sales in the summer and monsoons than in winter owing to the fact that most
soccer in the country is played at these times in a year. At the same time,
since sports shoes are often used as fashion accessories and footwear, a
buying flurry may take place in the months of October and November, during
the festival of Diwali the gift-giving period in India.
Marketing Mix: Sports shoes in India are usually distributed through company
showrooms, franchisees and other retail outlets. Certain brands have their
own exclusive company-owned showrooms, while others operate through
franchisees. In addition, many distribute through retail outlets as well. As far as
pricing is concerned, a sports shoe in India can cost anything between Rs.
300 and Rs. 6,500, depending on the brand, quality and design. For the
premium brands, the lower limit can be raised to Rs. 800. The type and
promotion varies from brand to brand. While most players use print media and
billboards for advertising, some use television advertising as well. Celebrity
endorsements are a common form of promotion for sports shoes in any
country and India is no exception. Often, these companies also sponsor
sporting events and sports programs on television in order to promote their
product.

Category Factors
Concentration: As mentioned before, the sports shoe market is about 40 45
per cent of the organized sector. This amounts to about 45 million pairs of
sports shoes every year. This can be further split into the premium and general
segments. In the premium segment, the major players are Nike, Reebok,
Puma and Lotto. Reebok is the largest player enjoying about 50 per cent
market share. The rest is divided between the other players, with Puma having
around 30 per cent of the overall market.
Power of Buyers: The end customer in this case does not have much power
as a buyer. Bargaining power is not a factor in this industry as the prices are
always fixed. Prices are also standardized across stores, which means that no
matter where you buy a pair of Puma or Reeboks, they will cost the same. As
far as the outlets and sellers of these products are concerned, their situation is
pretty much the same. Most of the time these sellers are either franchisees or
agents who do not have any say in the matter of prices.
Power of Suppliers: As can be inferred from the section on buyers, above, the
power here lies in the hands of the suppliers. They decide upon the prices and
sell them to the end user as well as intermediaries at standard and fixed
prices. This is due to the fact that the product range itself is more or less
standardized.
Rivalry: In the premium segment the rivalry is between only a few players. This
means that competition is intense with only about 3 or 4 brands vying for the
market. If the picture can be broadened to include the non-premium segment
as well, the number of competitors increases. Multinationals like Nike and

Reebok have hardly any presence in this segment, with only 1 or 2 models in
this price category. But then, this is not the segment being targeted by these
companies.
Pressure from Substitutes: Substitute products in this case are other forms of
footwear. This is of course, true only in the case of people who use
sports shoes as leisure or fashion wear. After all, a sports person cannot
be wearing anything other than sports shoes. To be more detailed,
substitute products are leather shoes and sandals. Again, since we are
concerned primarily with the premium segment, we can narrow the
substitutes down to expensive leather shoes and sandals. Premium
users can be expected to switch brands and even the generic product,
but usually do not downgrade to a lower price range.
Ease of Entries and Exits: For a domestic or new player, the entry barrier
would be very high. Brands like Adidas and Reebok are well established in the
country and it would be difficult to displace them. In fact, all the players in the
premium segment are international brands, with worldwide reputation and
recognition. Although it would be possible for other well-established
international brands (like Fila and LA Gear) to enter the market, it would be
almost impossible for a local manufacturer to enter the segment under
consideration. At the same time, following the implementation of WTO
regulations, it has now become easier for multinational players to import shoes
and penetrate the market in a big way. This makes it possible for them to
achieve significant economies of scale, while cutting down on manufacturing
costs.

PEST ANALYSIS
Technological Factors: Technology is not much of a factor in the sports shoe
industry. The non-technical nature of the product means that manufacturing
equipment and machinery do not usually become obsolete easily. As far as the
shoe itself is concerned, manufacturers claim that new technology comes into
the picture every year. However, this new technology is more innovation than
technological advancement and has little to do with advances in science and
technology. Hence although technology does not play much of a role, product
innovation happens to be a key factor.
Social: Changes in outlook, value, lifestyle and demographics are can tell on
the performance and acceptance of a product. In this context, changes in
fashion trends can prove to be a critical factor. Right now, it is in fashion to
wear sports shoes as leisure wear, but if this changes, sport shoe
manufactures will be affected. Similarly, if the use of child labor in the
manufacturing of these sports shoes (especially in case of Puma) becomes an
issue, it might lead to people boycotting the brand or organizing protests and
demonstrations against it.
Political: Following liberalization, the political scenario in India has been
conducive to foreign multinationals setting up their businesses in the country.
However, if the government changes its policy and decides that multinationals
are no longer welcome in India, it will spell the end of Indian operations for
Puma as well as its competitors. However, judging by the present state of
affairs, this situation is unlikely to arise.

Regulatory: A problem that has been plaguing Puma for a long time now is
issues related to labor. Accusations of unethical behavior, whether or not they
are true, only serve to injure Pumas image, and, as a result, product sales.
One such example of questionable behavior relates to Vietnam and the trade
embargo placed on the communist country as a result of United States
POWs/MIAs. In 1993, United States President, Bill Clinton, promised to keep
the embargo in place until the US received an accurate picture of the situation.
However, two years later President Clinton normalized trade relations to the
dismay of the POW/MIA families involved, yet to the delight of the corporations
operating in Vietnam. White House documents have revealed large donations
to the Democratic National Committee by companies with an interest in seeing
the embargo lifted. The image of profitability being more important than
American POW/MIAs has led to an unfavorable image with armed forces,
families and Americans as a whole. This, combined with the "sweatshop"
operations in Puma facilities in Vietnam and other countries, has negatively
impacted Adidass image. While the worst is over, Puma is still working on
initiatives to change the current situations throughout factories. Whether true
or not, the company still suffers from this unethical image and must sway the
minds of the consumer and give them a renewed faith in the responsibility of
Puma.
In this context, if any kind of regulatory measures are taken against Puma,
preventing them from employing labor and production facilities in Vietnam and
Southeast Asia, it will definitely affect the company and its performance.

MARKETING MIX ACTIVITY

Puma's range of athletic footwear is priced between Rs. 1,200 and Rs. 6,500.
This represents the middle to upper segment of the market. Products (shoes
and apparel) are sold through exclusive franchisee owned showrooms all over
the country. In addition they are also sold through Bata showrooms as well as
certain authorized retail outlets. Adidas's promotional activities have so far
been rather laid back. They have not been aggressive and have never made
an effort to really storm the market. In fact, in a recent declaration, a top official
admitted that the Indian market despite its potential has been neglected.
NEW PRODUCT ACTIVITY
Puma does not have a manufacturing facility in India. The shoes that are sold
in the country are usually made in Southeast Asia and are imported. New
products and designs that are released in the US and Europe takes some time
before they reach Indian stores. This time period was unusually long in the
early years of operation but has been brought down in recent times. A new
and revolutionary range of shoes called Air Presto was introduced in India
towards the beginning of 2001, shortly after its release in the US market.
Puma is the Groups core brand and a leader in the sporting goods market. At
the heart of Puma is passion: passion for sports, passion for athletes and
passion for products. Puma is a brand built on leading technology and cuttingedge design. It is a brand identified and respected by consumers for its
innovative, inspirational and authentic values. Puma is organized into three
consumer-oriented product divisions: Forever Sport, Originals and Equipment.
This structure is unique to the industry and reflects the brands commitment to

meet changing market demands, while remaining anchored to its brand

principles and heritage. Performance-oriented footwear, apparel and hardware
products will always remain the lifeblood of Puma. However, Puma is also
committed to incorporating the growing importance of lifestyle, fashion and
music inspiration into the sports arena and Puma products. This strategy
allows the brand to create a unique Puma experience and mean more to more
consumers.
PRODUCT / BRAND STRATEGY
CUSTOMER TARGETS
A key factor while deciding upon the target audience of Puma is the price of a
pair of Puma shoes. Puma is a high-end sports shoe, an expensive product.
Taking these factors into consideration, it has been decided that the target
customers for Puma shoes in India would be middle and high income groups.
It is within this category that further segments and target customers will have
to be identified. It would, therefore necessary for Puma to target various parts
of its product range at the right target audience.
The people most likely to buy Puma shoes would be people who are fashion
conscious. To these people shoes like Puma are lifestyle products rather than
sports wear. This customer group would be the largest and critical to the
success of the brand. Furthermore, these people are likely to be within the 16
30 age group. Children can also be included in this category, as they too are
getting more and more fashion conscious these days.

The second category to be considered is people who indulge in various

sporting activities. These people need a pair of high-performance and
comfortable sports shoes and it is up to Puma to fulfil that need. This category
can be further sub-divided into more segments according to the sport played.
Puma has a shoe for every sport Basketball, Tennis, Cricket, Soccer and
more. People playing each of these sports need to be targeted specifically.
In close conjunction with the category are sports fans. These are people who
do not play any sport seriously, but like to pretend that they are. Being sports
fanatics, they would like to dress themselves in the most fashionable sporting
gear available and that includes sports shoes.
The target audience can also be classified according to age. Puma, and other
brands like Reebok and Puma appeal to young people children, teens and
people in their twenties. But at the same time Puma has a range of shoes
made to serve the needs and preferences of the older group of people. There
is no need to believe that only the young can wear Puma, older people can
too. This belief however, has to be cultivated in the minds of the people.
COMPETITOR TARGETS
Pumas competitors can again be classified into primary and secondary
competitors. At the primary level are Reebok and Puma. Both companies
manufacture similar shoes and target them at the same people young,
fashion-conscious and sporty. They too have shoes for different sports and
target them at amateurs as well as professionals.

On the secondary level, there are other manufacturers of less expensive

sports shoes companies like Power (a brand owned by Bata), Lotto, Libertys
Force 10 and Action. These companies are of lesser importance as they cater
to a different target audience people with less buying power. At best these
brands will be competing with the lower end of Pumas product offering.
A third category that can be identified is the gray market. This refers to shoes
that are smuggled into the country. They are sold in certain areas of cities. The
buyer in this case does not get any warranty, nor does he take home a bill.
This market is flooded with the top brand names from all over the world Nike,
Reebok, Adidas, Fila, Puma, LA Gear and others. Shoes are sold much
cheaper than their showroom prices. The market also features models that
may not be available in the authorized showrooms and franchisee stores. This
puts Nike in the queer situation of having to compete against itself on terms
like price.
PRODUCT FEATURES
Apart from delivering a pair of comfortable sports shoes Nike also provides a
number of value-added features with its products. The features that are a part
of every Nike sports shoe are as follows.
High Performance Sports Shoes: Nike has patented the Air system and has
made it into a regular feature in most of its models. Many models feature an
air pocket in the shoe that reduces the weight of the shoe and reduces
pressure on the heels. Besides the overall design and compactness of the
shoes have made it a favorite of many professional athletes around the world.

Comfort: Nike shoes are renowned all over the world for the comfort they
provide. Well padded and cushioned, they provide a tremendous level of
comfort to the wearer and reduce the strain to his feet while playing.
Lightweight: This attribute is in line with the two described above. Lightweight
shoes provide greater mobility and eases the pressure on the feet of the
wearer.
Durability: People purchasing a pair of shoes at such a high price often feel
that they have made an investment. They would obviously want to see their
shoes last a long time. To prove this point we draw the example of the authors
of this marketing plan. All of us own a pair of Nikes and have been wearing
them for well over two years a symbol of the durability of Nike shoes.
Style: Nikes designs are considered to be the most stylish in the industry and
beats all others as far as looks are concerned. Attractively packaged, it is a
delight to bring a pair home. Add to this the Swoosh the most recognizable
symbol in sports and you have a product that would give the user a definite
sense of pride.
Nike shoes also come with a guarantee card that enables the owner to return
it in case of manufacturing defects. However, owing to the fact that the
company implements strict quality control measures, coming across a
defective pair in a store is a rarity.

SPECIFIC PRIMARY PRODUCT / BRAND OBJECTIVE

The specific brand objective of Puma India would be to build up its brand
reputation, image and equity. A brand is not simply a collection of products and
benefits, but also a storehouse of value stemming from awareness, loyalty,
association of quality and brand personality. A brand is a name, term, sign,
symbol or design or a combination of them intended to identify the goods or
services of one seller or group of sellers and to differentiate from those of
competitors. In essence, a brand identifies the seller or maker. It can convey
up to six levels of meaning: Attributes, Benefits, Values, Culture, Personality
and User. If a company treats a brand only as a name it misses the point. The
branding challenge is to develop a deep set of positive associations for the
brand.
Although these six meanings are noticeable in the Puma brand in the west
and other parts of the world, they are yet to be cultivated in India. Puma has to
ensure that their brand is built up on these pillars in India.
SPECIFIC SECONDARY PRODUCT / BRAND OBJECTIVE
The secondary brand objective of Puma India would be to ensure that they
match the market share and sales volumes of its competitors. After all, a
company is in business to make profits and stay ahead of its competitors. A
company, product or brand may have a very good reputation and image, but if
it is not profitable, it does serve its purpose. At the same time sales figures and
data can be misleading. Hence market share has also to be paid attention to.
RATIONALE

Recently, a survey was conducted on the popularity of the different leading

brands of shoes in India. People were surveyed in some of the major cities of
the country and it was found that Bata (and Power) was the most popular
brand. Puma was lagging behind as a distant fourth. Details of the survey can
be seen in the table below.
Another survey of a similar nature was conducted in some of the major cities
of the country. The findings are shown in the table below.
BRAND
Bata
Liberty
Woodland
Nike
Reebok
Puma

CHENNAI
77
23
25
11
8
4

MUMBAI
69
16
27
14
10
7

BANGALORE
65
16
27
7
11
6

DELHI
59
53
35
5
7
5

The table points at point at one thing that Puma despite being one of the
most popular brands in the world has not really caught on in India. It is true
that the figures for Bata and Liberty are a little misleading they are combined
figures for sports as well as other types of shoes. Yet, there is reason to
believe that Batas Power and Liberty would be ahead of Puma in terms of
popularity. Looking at the bottom half of the table, we notice that Puma is at
par with Reebok. This again does not reflect too well on the brand, considering
that Puma outsells Reebok everywhere else in the world.
Hence it is reasonable to state that Pumas popularity level in India could do
with a boost. The best way to achieve this would be some serious brand
building. The image of the brand has to be improved and people must be
made aware of its presence. Thus, the rationale behind choosing

improvement of brand image and reputation as the companys primary

objective is quite clear.
At the same time, profits and market share must be paid attention to. There is
no point in having a brand that everyone likes but does not buy. That is exactly
what is happening Reebok, as we can see in the chart and table is as
popular as Puma, but Reebok sells more than Puma and has a greater market
share. This situation has to change considerably.
CORE STRATEGY / VALUE PROPOSITION
Pumas distinctive competency lies in the area of marketing, particularity in the
area of consumer brand awareness and brand power. On the global scale this
key distinctive competency towers over the competitors. As a result, Pumas
market share is number-one in the athletic footwear industry in most places
around the world.
Two key attributes of a distinctive competency are its inability to be easily
replicated and the value or benefit it offers to consumers. Few companies
have such a recognizable image and the resources to promote it. This
ultimately translates into added value for consumers. The public benefits from
the strength of Pumas image at the point of purchase. For decades,
consumers have come to associate the Puma image with quality products. By
associating star athletes and motivational slogans with marketing campaigns
that emphasize fitness, competition, and sportsmanship, consumers identify
their purchases with the prospect of achieving greatness. Younger consumers
especially benefit from this positive influence. This image is something that

competing companies can not easily duplicate by simply enhancing the

physical characteristics of their products.
Pumas vision is to remain the leader in the industry. The company will
continue to produce the quality products that have been provided in the past.
Most importantly, Puma will continue to meet the ever-changing needs of the
customers, through product dinnovation. In the past, the company has utilized
product differentiation as the main competitive strategy. As Pumas reputation
dictates, it will continue to place emphasis in this area. Puma has built its
business on providing products that rise above all others and this has made it
the worldwide success that it is today.
Puma is known for its technologically advanced products and is the leader in
this area. This allows Pumas products to stand out from the rest. The
companys focus also allows it to maintain a somewhat narrow niche that
enables it to effectively capture the needs and wants of the consumers. An
example of Pumas superior and innovative technology is its new range of
shoes called Air Presto. Termed as the first T-shirt for the feet, these shoes
can take the shape and size of the wearers feet. Unlike regular shoes it
comes is sizes like XL, L, M, S and XS. Each of these sizes can accommodate
three conventional foot sizes. Puma will continue to produce such pathbreaking products in the future and stay a step ahead of its competitors.
Puma will also focus on making a strong effort in price leadership. Pumas
products in the past have been concentrated in the higher end of the pricing
category. An entrance will now be made into lower price categories with these

quality products. This will enable Puma to capture an even greater hold on
market share.
MARKETING PROGRAMS
PRICING
As mentioned before, Puma caters to the higher income group and its
products are priced accordingly. The table below shoes the current price range
of Pumas shoes in India.
Shoe Type
Cross Training
Running
/

Men
Rs. 4,500 4,900
Rs. 1,000 5,200

Walking
Tennis
Air Presto

Rs. 3,900
Rs. 5,200 5,900

Women
Rs. 1,200

Kids
Rs. 2,000 - 3000
Rs. 1,000 2,500
Rs. 2000

As can be seen from the table, Pumas price range in the Cross Training and
Tennis categories are rather narrow and limited. These segments cater strictly
to the high and very high income groups, leaving the middle income group
without a scope of enjoying any of these products. We suggest that this price
range be expanded to include shoes of a lower price. Puma should introduce
cheaper models within these categories like they have dome in the Running /
Walking segment. By doing this, they will be able to target a larger customer
base and gain market share without reducing their prices.
On the other hand, the Air Presto range of shoes are lifestyle products aimed
at the top end of the market. This is a niche market and we suggest that it be
kept such. A premium brand like Puma needs to hold on to a niche market of
select people. These shoes are like no other in the industry and are therefore

classified as exclusive products. Later on, however, when the product line
becomes more widespread and grows older, one may consider reducing
prices a little bit.
FINANCIAL OBJECTIVES
Our financial objectives are as follows:.

To maintain year-end minimum contribution margins of 40%.

Sales
Cost of sales
Gross profit
- in % of consolidated sales
Royalty and commission income
Other operating income and expenses
Operational result before special items
Special items
EBIT
- in % of consolidated sales
Financial result
EBT
- in % of consolidated sales
Taxes on income
- Tax rate
Net earnings


year.

To grow direct retail sales by a conservative minimum of 12% per

To achieve sales of $190,000 in year one

FINANCIALS

Sales are expected to grow from $193,000 the first year to $262,000 by
year three.

Expenses will increase with the rate of inflation (3%) minus diminishing
cost of goods (1%).

PRICING
The amount of money charged for a product or services or the sum of the
values that consumers exchange for the benefit of having or using the product
or service. Price communicates the value positioning of the product and is a
major component of marketing plan which in turn is a part of business plan. It
is a Strategic activity that differentiates the product from competitors.
Price =Cost + Profit
There are Four Views Of Price
Economists view: Price is set by the forces of supply& demand.
Accountants view: Price should cover costs so that profit can be earned.
Customers view: Price has to represent good value.
Marketers view: Pricing is an opportunity to gain competitive advantage.
( Marketing management, 3rd edition, Rajan Saxena).
Steps In Setting Price:
1. Set pricing objectives

Revenue maximisation
It seeks to maximise revenue from the sale of products without regard
to profit. This objective can be usefulwhen introducing a new product
into the market with the goals of growing market share and establishing
long term customer base.
For a well funded company, or a newly public company, revenues are
considered more important than profits in building investor confidence.
Higher revenues at a slim profit, or even a loss, show that the company

is building market share and will likely reach profitability.

Quantity maximisation
It seeks to maximise the number of items sold. This objective may be
chosen if you have an underlying goal of taking advantage of
economies of scale that may be realised in the production or sales
arenas.
There are a couple of possible reasons to choose the objective. It may
be to focus on reducing long term costs by achieving economies of
scale. It may be to maximise market penetration- particularly
appropriate when you expect to have a lot repeat customers. The plan
may be to increase profits by reducing costs or to upsell existing

customers on higher profit products down the road.

Quality maximisation
It is used to signal product quality to the consumer by placing prices on
products that convey their quality.

2. Select pricing method

a)Cost plus/ Mark up pricing
We suggest this method to be used because in this method the marketer
estimates the total cost of producing and manufacturing a product and then

adds a mark up or the margin that the firm wants. This is indeed the most
elementary pricing method and many services and products are priced
accordingly. To arrive at the mark up price one can use the following formula.
Mark up price equals=/ (1-r),
where = unit cost( fixed cost + variable cost)
r = expected return on sales expressed as a %.
This approach ensures that all costs are recovered and the firm makes a
profit.
Another major determinant, infact the limit to pricing, is the firms cost
structure. It is important to estimate the costs of manufacturing and marketing
the product. Is is thus important to know how costs behave over a period of
time and quantities produced.
Therefore, the graphs shown below help us understand the relationship
between_
b) Costs and Time (Learning costs)

As time collapses, costs go down because the firm learns how to manufacture
and market the product efficiently.
a) Cost and Quantity Produced

More than the quantity produced lower is the cost. This brings into play the
importance of large scale production. The rule is that as a firms production
level reaches its optimum, it gets the benefits of economies of scale operation

which the firm can pass in the form of lower costs. The firm may pass this
benefit to the customers in the form of lower price. Many transnationals use
this strategy to compete in the world market.
b) Determine demand

The questionnaire was taken from 21 correspondents.

From where we got to know that majority of people, i.e 16 of them feel there is
a need of sports equipment in puma.
Where as 3 on 21 feel there is a need gap for introducing kids wear.
And 2 said there is no need of introducing anything.
*Questionnaire survey taken from 21 correspondents.
c) Analyze competitors price mix

The marketing mix or the 4 Ps of Marketing of of our competitors Nike are

Product, Price, Place (distribution) and Promotion. Nike's 4Ps are the
following:
1.Product
Nike offers a wide range of shoe, apparel and equipment products, all of which
are currently its top-selling product categories. Nike started selling sports
apparel, athletic bags and accessory items in 1979. Their brand Cole Haan
carries a line of dress and casual footwear and accessories for men, women
and children.
They also market head gear under the brand name Sports Specialties,
through Nike Team Sports, Inc. They sell small amounts of plastic products to
other manufacturers through Nike IHM, Inc. Bauer Nike Hockey Inc.
manufactures and distributes ice skates, skate blades, in-roller skates,
protective gear, hockey sticks and hockey jerseys and accessories
2. Price
Nikes pricing is designed to be competitive to the other fashion shoe retailers.
The pricing is based on the basis of premium segment as target customers.
Nike as a brand commands high premiums. Nikes pricing strategy makes use
of vertical integration in pricing wherein they own participants at differing
channel levels or take part in more than one channel level operations. This
can control costs and influence product pricing
3. Place

Nike shoes are carried by multi-brand stores and the exclusive Nike stores
across the globe. Nike sells its product to about 20,000 retail accounts in the
U.S. and in almost 200 countries around the world. In the international
markets, Nike sells its products through independent distributors, licensees
and subsidiaries. Independent distributors need not adapt to local pressures
because the 4Ps of marketing are managed by distributors
4. Promotion
Promotion is largely dependent on finding accessible store locations. It also
avails of targeted advertising in the newspaper and creating strategic
alliances. Nike has a number of famous athletes that serve as brand
ambassadors such as the Brazilian Soccer Team (especially Ronaldino,
Renaldo, and Roberto Carlos), Lebron James and Jermane ONeal for
basketball, Lance Armstrong for cycling, and Tiger Woods for Golf.
3. Select Pricing strategy
Penetration pricing
This strategy is used to gain entry into a new market. The objective for
employing penetration pricing is to attract and grow market share. Once
desired levels for these objectives are reached, product prices are typically
increased.
Penetration prices do not garner the profit required. Therefore it must be used
strategically.
This strategy can be used when the pricing objective is either revenue or
quantity maximisation. The lower price set on products by using penetration
pricing is done to entice the maximum number of customers possible to

purchase the product. Large numbers of customers purchasing the product

should maximise the revenue and the quantity of product sold.
o Competitive pricing
This strategy refers when the pricing is based on the prices which the
competitors have on the same product.
This pricing strategy can be useful when differentiating the product from other
products is difficult.
1.

Selecting the final price

Based on the above criteria, the final price is selected for the product.

PRODUCT LIFE CYCLE

A product life cycle refers to the time period between the launch of a product
into the market till it is finally withdrawn. In a nut shell, product life cycle or
PLC is an odyssey from new and innovative to old and outdated! This cycle is
split into four different stages which encompass the product's journey from its
entry to exit from the market, thus impacting the pricing strategy and the
pricing mix.

Price In Every Stage

Introduction Stage: After conducting thorough market research, the company
develops its product. Once the product is ready, a test market is carried out to
check the viability of the product in the actual market, before it can set foot into
the mass market. Results of the test market are used to make correction if any
and then launched into the market with various promotional strategies. Since
the product has just been introduced, growth observed is very slight, market
size is small and marketing cost are steep (promotional cost, costs of setting
up distribution channels). Thus, introduction stage is an awareness creating
stage and is not associated with profits! However, strict vigilance is required to
ensure that the product enters the growth stage. Identifying hindering factors
and nipping them off at the bud stage is crucial for the product's future. If
corrections cannot be made or are impractical, the marketer withdraws the
product from the market.

For the Puma fitness products, there may be low penetration pricing to build
market share rapidly, or high skim pricing to recover development costs.
Growth Stage: Once the introductory stage goes as per expected, the initial
spark has been set, however, the fire has to be kindled by proper care. The
marketer has managed to gain consumers attention and now works on
increasing their product's market share. As output increases, economies of
scale are seen and better prices come about, conducing to profits in this
stage. The marketer maintains the quality and features of the product (may
add additional features) and seek brand building. The aim here is to coax
consumers to prefer and choose this product rather than those sold by
competitors. As sales increase distribution channels are added and the
product is marketed to a broader audience. Thus, rapid sales and profits are
characteristics of this stage.
Maturity Stage: This stage views the most competition as different companies
struggle to maintain their respective market shares. The clich 'survival of the
fittest' is applicable here. Companies are busy monitoring product's value by
the consumers and its sales generation. Most of the profits are made in this
stage and research costs are minimum. Any research conducted will be
confined to product enhancement and improvement alone. Since consumers
are aware of the product, promotional and advertising costs will also be lower.
In the midst of stiff competition, companies may even reduce their prices in
response to the tough times. The maturity stage is the stabilizing stage,
wherein sales are high, but their pace is slow, however, brand loyalty develops
imparting profits.

Thus Price may be lower because of the new competition.

Decline Stage : After a period of stable growth, the revenue generated from
sales of the product starts dipping due to market saturation, stiff competition
and latest technological developments. The consumer loses interest in this
product and begins to seek other options. This stage is characterized by
shrinking market share, dwindling product popularity and plummeting profits.
This stage is a very delicate stage and needs to be handled wisely. The type
of response contributes to the future of the product. The company needs to
take special efforts to raise the product's popularity in the market once again,
by either reducing cost of the product, tapping new markets or withdrawing the
product
Prices may be lowered to liquidate inventory of discontinued products. Prices
may be maintained for continued products serving a niche market.
ADVERTISING
Thus far, Pumas advertising campaign in India has been rather passive when
compared to their normally aggressive advertising strategies in the rest of the
world. Advertising

is

predominantly

carried

out

on

magazines

and

newspapers. Television advertising is present, but it is on a much smaller

scale than it could be. In any case Puma spends just $240 million on its
worldwide airtime advertising campaigns. This figure could be increased and
more attention could be paid on television advertising in India. Moreover, most
of the Puma ads featured on Indian television are the same ones that appear
in the west. While these ads featuring famous sports personalities like Pete
Sampras, Andre Agassi and Michael Jordan are of a very high quality, they

often do not reach out to most Indians. Puma needs to Indianize its ads to
appeal to the Indian sensibility. They could take a leaf out of Reeboks or
Pumas book and rope in some famous Indian sports personalities to appear in
their advertisements.
Progress has been made in this area. Recently Puma signed a contract with
Rediffusion to carry out their new Indianized ad campaign in India.
Another strategy that could be followed by Puma is to allow the franchisee
stores to carry out their own ad campaigns. They could advertise their stores
in the local cable TV channels, newspapers and community magazines.
Banner advertising is already being carried out at quite a large scale in Delhi.
This could be extended to cover other major cities like Mumbai, Chennai,
Calcutta, Bangalore and Hyderabad.
Pumas Indian operation also needs to have a greater presence on the World
Wide Web. We suggest an Internet advertising campaign for the Internet,
featuring banner ads and links to their online store for India. The online Puma
store is doing reasonably well, but would generate more traffic if backed up by
online advertising.
PROMOTION
Although, Pumas advertising campaign in India has been somewhat sluggish,
they have spent a great deal of time and money on promotional activities.
Puma has sponsored numerous events all over India. Each of their store
openings have been accompanied a grand party and have all been
inaugurated by a celebrity. Recently, Puma opened their biggest Indian

showroom in Bangalore. Games were organized during the launch and many
young people participated. Games included Basketball, Tennis, Golf and
Soccer. These games, while popularizing the respective sports also popularize
the brand.
Another good idea to promote the brand would be to sponsor various local
sports teams. Puma should target schools and colleges and offer
sponsorships to their Basketball, Soccer and Cricket teams. This would
achieve significant results. By using shoes and other sporting gear made by
Puma, members of these teams have a very high chance of being converted
to Puma. They would also recommend Puma to their friends and fellow sport
persons. A start has been made in this department Puma sponsors the
Basketball teams of St. Stephens College and Hindu College, two of the best
colleges of Delhi. A move should be made to other cities and other amateur
and professional sports teams should be roped in.
College festivals, so popular in India are always looking for sponsors. This is
another area that Puma could exploit in their promotional activities. These
festivals are usually a meeting point for young people from various colleges.
Having a strong Puma presence at these events would go a long way in
promoting brand loyalty and awareness among the youth of the country the
age group where the bulk of the customers belong.
Recently, Puma collaborated with former Tennis player C.G.K. Bhupati to open
the Puma Bhupati Tennis village in Bangalore. This was an exercise in
promoting Tennis in the country. A similar emphasis should be laid on Cricket,
the most popular sport in India. Puma could organize coaching camps and

similar training centers like they have in Bangalore. Nike has also decided to
sponsor the prize money at PGA Tournament to be held in Delhi. Such
sponsorships should be increased in number and should be spread to other
sports as well.
These various promotional methods should either be incorporated into Nikes
promotional activity in India, or should be implemented at the earliest. This will
help satisfy the companys primary product strategy improve brand
reputation and image in the company.
SALES
Once the company has identified its target market and its desired positioning it
needs to identify the types of intermediaries to carry on its channel work.
At present Puma has 65 retail stores in the form of franchisees and a few
company owned showrooms. These outlets have employed around 10-12
people for its management, sales and for accounting purpose. Moreover for
any promotional activities in an outlet they have taken the strategy of
deploying youngsters for launching any new range of sports shoes. We
suggest that Puma use a young sales force in their outlets as this would go
well with the image of the company and appeal to young people coming to buy
their products.
POSITIONING
PUMA needs to become a place for women who need to satisfy all the fitness
needs including apparel and accessories. With the inclusion of this category,
Puma Women fitness might be able to offer high quality sports equipment to

shop for. This might position Puma women fitness as a brand fulfilling value
proposition for the customers by minimizing the need gap.
VALUE PROPOSITION
Value Proposition= Benefit/ Cost
Where,
Benefits= functional + emotional + self expression
Cost= money +time +effort+ psychological
Value proposition helps the consumer get to know about his need. To reach
there we made use of questionnaire method
ITEM TO BE INTRODUCED
FITNESS ACCESSORIES like
1. Neoprene Dumbbell
Features- Dumbbells are like ready to eat meal in the workout kitchen. Our
dumbbells apart from providing the usual benefits makes the user feels
special, because of the good feel of the product. The outer side is made of
fiber which makes it softer to the hands of women. Also, it feels personalised
to some extent because it is available in a variety of colours and prints to
choose from.
Sizes Available: 1kg, 2kgs, 3kgs, 4kgs, 5kgs, 6kgs, 7kgs, 8kgs, 9kgs and
10kgs.

2. Gym Ball
Features- These Fitness Balls help you improve balance, coordination and
flexibility and is an ideal equipment for exercising and weight training.
Sizes Available: 55cms, 65cms, 75cms
PRODUCT JUSTIFICATION
1.
Fits the retail format
Puma being a sports brand offering a number of sports equipment like cricket
kit, golf kit etc is ideal to accommodate sports equipment for women. Our
product is an extension to their existing product line
women fitness
2. Strategically fits marketing plan
a. Introduction of sports equipment for women might further
strengthen the positioning of Puma brand as an international
performance sports brand for high-quality athletic shoes, sport
textiles, and accessories.
b. The company always based its innovative marketing concepts on
the latest trend research. (Puma,2009) Adding a new category
adds to the innovation based on new trends.
3. Fulfils a consumer need gap
a. This has been shown as per the questionnaire conducted.
Where it shows that yes there is a need for introduction of such
product(s). The demand is high for such fitness equipment.

POSITIONING
(POST INTRODCUTION OF NEW ITEMS)

Might become a place for women to shop for all the fitness needs.

It might create a stand for itself among the competitors by offering

specialised service for women

CHANNELS
In addition, they also have an online store catering exclusively to Indian
customers. As of now they are not selling their products through other retails
stores that stock other brands.
The company has plans of increasing the number of showrooms and
franchisees all over the country. It hopes to increase the number from 65 to
100 over the next year. While this is a good idea, it is not enough. Puma
needs to follow Reeboks example and stock their products in other shoe retail
outlets as well. Selling them through well-established sports and fitness stores
would also be a good thing to do. Often we find people going out to buy a pair
of sport shoes they have not decided upon the brand. In this event they
might want to visit a store stocking multiple brands rather than a store stocking
products of a single brand. This is where Puma and Reebok have the
advantage. They sell their shoes through retail outlets and sports shoes, in
addition to brand-only showrooms. A prospective buyer visiting these stores
is simply missing out on Pumas product offering and Puma is missing out on a
number of new customers. Using this channel would mean new customers. It
would also mean eating into Reebok and Pumas customers and taking market
share away from them.
Puma also participates in trade shows in India and has outlets for factoryseconds. Seconds-outlets always attract a large number of customers,
primarily because of the low prices at which they offer the same products that

are available at the showrooms. These seconds-stores need to be increased

in number and their locations must be made known to the people of the cities
they are located in. These stores represent a golden opportunity for Puma to
woo the lower income groups. There are millions of people in India who would
like to possess a pair of Pumas but cannot afford one. This will be their
chance to enter the elite segment without having paid such a high price.
CUSTOMER MANAGEMENT ACTIVITIES
Presently, the only form of customer relationship management activity that
Puma has adopted in India is product warranty. Puma shoes come with a sixmonth warranty. If the shoe is found to be defective or wears out within six
months due to no fault of the wearer, Puma replaces the product. This is only
the first step and more needs to be dome in this area.
Being a company that always strives towards excellence, Puma needs to
know exactly what its customers think about their products. A good way of
assessing this would be to have the customer fill in a form at the point of
purchase. The form will ask the customer his / her opinion on the product as
well as the showroom. Suggestions and comments would be welcome.
However, care must be taken to ensure that these forms are not too
cumbersome and do not take up too much of the customers time. Surveys
have indicated that normally people dont mind filling in forms as long as they
are not too long.
Another good method would be to introduce a system of customer points.
Every time a customer makes a purchase, he would earn himself a certain
number of points, depending on the price of the product. After he crosses a

certain point level, he would be entitled to a gift from the company or choose a
product of a certain value from the range. This would be helpful in building
customer loyalty and give them an incentive to make repeat purchases. A
most valued customer database could be created from her e and various
forms of direct marketing could be directed at them. This would help the
company to retain its existing customers.
A third way to improve customer relationship would be to issue gift coupons
and vouchers. People would have the facility to buy these vouchers and
present them to their dear ones. This would be a good way to reach out
towards newer customers through existing ones.

COMPETITOR ANALYSIS
PRODUCT FEATURE MATRIX
The product feature matrix comparing Puma with some of its major
competitors is given below. An analysis of the matrix shows that Pumas shoes
are in no way inferior to its competitors. At the same time Reeboks products
are not lagging behind either.

FEATUR
E

BRANDS
Nike

Reebok

Adidas

Puma

Power

Action

Air

DMX,

None

None

None

Rockers

System

Pump

Available

Available

Available

Available

Available

Available

S
TM
F
e
a
t
u
r
e
Extra
Cushion
Soft

in
Available

Available

Available

Padded
Tongue
Enhance

Available
in

Available

Available

Available

models
Available

some in

models
Available

some in

models
Available

some in

models
Available

some

some

models
Not

Toe in

most in

most in

models
Available

most in

models
Available

Support

in

on Soles
Weight

models
Light

models
Light

models
Light

models
Medium

models
Medium

models
Heavy

Laceless

Available

Available

Not

Light
Not

Not

Medium
Not

Available

Available
Available

Available
Not

Available
Not

Available
Not

Available

Available

Available

most in

models
Available

some Available

Support
Plastic

most in

models
Available

most in

most in

Models
Multi-

Available

purpose

(Cross

and

Trainers)

Predomin

models
Available

some in

Available

some in

some

One-size

Available

Not

ant
Not

Not

Not

Not

fits all

(Air

Available

Available

Available

Available

Available

Brand

Presto)
Swoosh

Vector

3 Stripes

Present

Present

Present

Medium

Medium

Low

Name
Logo
Price

/
High

Medium

Premium

High

Low

Medium

Premium

OBJECTIVES
In order to meaningfully analyze the competitors and understand their
strategies, it is necessary to study and understand their objectives. To begin
with, one needs to know their core businesses and areas of specialization.
Data on market share and profits are also valuable sources of information.

The main competitors of Puma in India and indeed, the rest of the world are
Reebok and Puma. Both would have intentions of acquiring the highest market
share in the premium sports shoe segment in the country, in the long run.
Currently Reebok has the highest market share and would certainly want to
maintain that, if not increase it. Having gained widespread acceptance and
penetration, they might even want to explore new markets in India. Puma are
just behind Puma in terms of market share and would aim at catching up, and
if possible overtaking their rivals. At the same time Puma would want to gain
greater penetration into the Indian market. Apart from the issue of market
share, the question of profitability would be on the minds of all the competitors.
STRATEGIES
Pumas various competitors have strategies that show similarities in certain
respects and differences in others. In other words, a uniform strategy does not
prevail among competitors.
Market segments pursued
The market segments pursued by Pumas competitors can be analyzed at
many different levels. Although it is not known which company segments
according to what criteria, one can take educated guesses. In this analysis of
Pumas competitors, the different segmentation criteria that have been
identified are on the basis of income, sex, age and usage.
Reebok: Reeboks shoes are primarily targeted at the middle to high income
groups in urban areas. They have divided their product range into shoes for
men and shoes for women and have the segmented the market according to

sex. They have ranges of shoes made especially for children as well as older
people. In terms of usage, like any leading manufacturer of sports shoes they
have different ranges of shoes for different sports (Tennis, Basketball, Cricket,
Soccer etc.) and each of these sports forms a segment by itself.
Adidas: The income group targeted by Adidas is slightly lower than that
pursued by Reebok. Although the same people who buy Reebok might also
buy Adidas, there are also people who are able to afford a pair of Adidas
shoes but not Reebok. In addition, Adidas have also segmented their product
range according to sex and have shoes for children in their repertoire. The
segmentation on the basis of sports is present in case of Adidas but less
pronounced. They do have shoes made for Tennis, Cricket and Soccer, but
they also specialize in all-purpose shoes that can be used for a number of
sports, at least so some extent.
Puma: Puma targets an income group lower than Adidas and Reebok. Theirs
is the middle income group, perhaps bordering on high. However, their
products cannot be clearly categorized as made for males or females. Nor do
they have separate designs targeted at children. Like Adidas, most of their
designs are all-purpose sports shoes, though some segmentation on the basis
of sports is noticeable.
Power: Power is made with the low and middle-income groups in mind. They
have designs and prices for entry level as well as mid-range buyers. Their
designs are also well segmented in terms of sports and they have a distinct
ranges meant for women and children. In a nutshell, Power does pretty much
the same things as Adidas and Reebok, only on a smaller and cheaper scale.

Action: Action is the shoe for the masses and is targeted at the low to medium
income groups, primarily the low. Very basic in nature, they are really shoes
with a sporty look and are not targeted at sports persons. Hence their product
line does not show any differentiation on the basis of sports. There are
however designs for children.
Further data on market share and brand popularity can be found in Annexures
3 & 4.
Marketing Mix
The marketing mix is different for different manufacturers and brands of
shoes. The methods of distribution and strategies for promotion and
advertising vary. They do overlap in some cases, with two brands adopting
similar tactics, but in no way are the marketing mixes of two companies
identical. The table below lists the salient features of the marketing mix of
each of the competitors.

Price
Promotion

Channels

REEBOK
Rs. 800
Rs. 6,500
Advertising:
Print,
Billboards,
FM Radio.

ADIDAS
Rs. 1,000
Rs. 5,500
Advertising:
Print,
Billboards,
TV ads.

Endorsed
by
celebrities.
Franchisee
s.

Endorsed
by
celebrities.
Franchisee
s.

PUMA
Rs. 1,500
Rs. 4,000
Advertising:
Print

POWER
Rs. 250
Rs. 2,500
Advertising:
Print,
Billboards.

ACTION
Rs. 400
Rs. 1,200
Advertising:
Print,
Billboards,
TV ads.
Celebrities
used in ads

Bata
showrooms
.

Bata
Retail
showrooms outlets.
&
Retail
outlets.

The promotional activity carried out by Reebok and Puma have been quite
aggressive. Both brands have made sure that they get noticed in the market.
Reebok was the first to enter the Indian market and had a head start over
Puma, but the German company has gained significant ground in recent
times. Both have been able to get famous and popular Indian sports
personalities to endorse their products. Adidas have Sachin Tendulkar, the
famous Cricket player and the Tennis duo of Leander Paes and Mahesh
Bhupati. Reebok have Rahul Dravid, a member of the Indian Cricket team and
the Soccer player Baichung Bhutia. The presence of these popular
personalities as brand ambassadors has really made a difference to the
brands, and have helped them gain widespread recognition and acceptance in
the market. Sachin Tendulkar also appears in the TV commercials of Action
shoes and this has given the brand a better image and has to an extent
removed it from the category of being a poor mans shoe.
As far as channels of distribution are concerned, that is where Reebok holds
the advantage. Reebok products are sold in more places than are Adidas or
Adidas products. They are beginning to reach the same level of market
penetration as Action and Power two of the oldest players in the market.
Lotto, on the other hand is sold primarily through Bata showrooms and have
therefore not been able to spread itself in the market.
DIFFERENTIAL ADVANTAGE / RESOURCES
Each of Pumas competitors holds some kind of advantage over the other. In
some cases, these points of differentiation do not matter much, but in other
cases they have the potential to be decisive.

Reebok: In many ways Reeboks shoes are quite similar to Pumas. Both are
stylish and comfortable at the same time. As far as brand name is concerned,
both are equally sought after and as prestigious as the other. If Puma have the
Air system as their major selling point, Reebok have patented the DMX
technology. The two companies price their shoes at the same level cater to the
same target market. Both companies entered the Indian market at more or
less the same time, so no one can be said to have enjoyed a first mover
advantage. Yet, Reebok enjoys a larger market share.
Adidas: The shoes manufactured by Adidas do not have proprietary
technology behind them like Adidas and Reebok, but they are as stylish and
comfortable. The brand name is equally well known. The differential
advantage lies in the pricing. Adidas shoes are priced lower than both Adidas
and Reebok. As a result many look at them as offering as good at a lower
price.
Puma:Pumas brand name is internationally known, but in India it comes
behind Adidas, Reebok and Adidas in terms of prestige. At the same time their
shoes can be considered inferior in terms of quality when compared to the big
three. However, Lotto remains the cheapest international brand available in
the Indian market.
Power: Powers greatest advantage is the fact that it has been around in the
market for a very long time it is the oldest player in the Indian sports shoe
market. At one stage it was the premium sports shoe in India, with many
famous sports personalities endorsing it. It was even the official shoe of the
Indian Cricket team in the 80s. But following the arrival of the multinationals it

lost its foothold on the premium segment. It is still a powerful player in the
middle and lower segments and enjoys widespread market penetration and
availability. Its wide price range ensures that there is a pair of Power sports
shoes for everyone.
Action: Like Power, Action too has a very deep penetration in the market. It is
a shoe for the masses and never really looked at the premium segment. Only
recently has it tried to cultivate a more international image and is trying to
compete at the lower end of the premium sports shoe segment.
However, due to the very generic nature of the product, it is difficult to pinpoint
too many points of advantage while comparing Puma, Reebok and Adidas. In
the end it comes down o which company creates a better brand image and
which company has a better and more effective marketing strategy.
We have however, tried to identify some strengths and weaknesses that Puma
might have with respect to its competitors. Its strength, at least on the product
level, lies in their ability to innovate and bring out revolutionary products every
few years. However, their weakness, in the Indian context is that they have not
been able to cash in on the Indian sports icons and have thus missed out on a
major promotional opportunity. The market for childrens shoes presents a new
opportunity. Threats come in the form factors like market saturation, demand
fluctuations, brand shifting problems and changing demographic features. But
these last problems mentioned are applicable to other players as well.
EXPECTED FUTURE STRATEGIES
Future strategies of Pumas primary competitors, Reebok and Puma can be
predicted from their current strategies. Both companies have cashed in on the

Cricket fever that has been sweeping India for the past few years. They have
managed to get national sports heroes to endorse their products. They are
likely to continue using this strategy for some time.
Reebok is also expected to match Puma strength for strength in promotional
activities and advertising. Their promotional efforts are already on quite a large
scale and Reebok, for one, sponsors quite a few sports teams around the
country. The moment Puma gets aggressive in these departments, Reebok
and Puma will do the same.
In addition, Reebok is also planning to introduce a new range of sports shoes
for children. This is their strategy for dominating the kids segment and
cultivate a brand loyalty among them an investment for the future.
The other competitors, namely Action and Power are expected to continue in
the way they are at present. They already have the recognition and reputation
in the market and will probably continue to target the middle and lower income
groups.

RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
RESEARCH DESIGN
The study conducted to achieve the before said objectives was both
exploratory and descriptive in nature and involved personal interviews
based on the questionnaire format.
DATA COLLECTION METHOD:

Primary source

Secondary source

Primary sources: -

The data required for the study would be based on:

Personal interviews based on pre-decided format of structured

undisguised questionnaire, which would be administered to the
respondents.

Personal interview with the Company representatives regarding

the various data.

Short interviews with the customers.

Secondary Sources: The secondary data consists of information collected from:

Websites

Annual Report of the Companies

Business magazines

Trade guides

Published data on Footwear industry

Sampling Plan
The entire study covered the following two respondent segments:
a. Customer - 100.
Total sample size was 50 and the sampling used is judgement.
Convenient Sampling technique were applied for Survey at the SIS,
exclusive and Puma MBO stores with customers. And Systematic and
Random Sampling technique will be used for store managers.

DATA ANALYSIS AND INTERPRETATION

Do you generally use?

Lotto
16%

Nike
20%

Action
17%

Addidas
21%

Reebok
26%

According to the survey of 100 respondents most of them agreed that they
prefer Reebok more. In India, Reebok shoes are targeted towards the higher
income group and on the basis of the different sports played in the country.

How easily did you find the new Puma store location to buy a new Puma
pair?

Difficult
4%

Very difficult
0%
Very Easily
40%

Easily
56%

Most of the respondents agreed that location of Puma store. Location and
concept are the most important factors and play a key role during initial stages
for the survival of business in the near future. The other constituents which are
necessary for success are: efficient management, right product & quality,
value for money and investing in staff training is very important. Once an
establishment is established, gets a name in the market many other factors
play an important role in its success or survival in the future.

Do you ask for a specific brand by name?

No
10%

Yes
90%

The above graph shows 90% of the respondents ask for particular brand of
shoes. For the two broad categories of customers, two broad sets of benefits
can be associated with Reebok shoes. For those who look upon the product
as sporting gear, comfort and weight would be paramount. These two factors
would appear on the top of their list of priorities in choosing a sports shoe.

What prompted you to purchase your shoes?

Recommendations of relatives/friends is most important decision of purchase

45
40
35
30
25
20
15
10
5
0
Impressed with the Shopkeeper gave
advertisement
it to me

A well-wisher
recommended to
me

Just bought it no
specific reason

behaviour of shoes. Understanding consumer needs and buying process is

the foundation of any company. By understanding how buyers go through
problem recognition, information search evaluation of alternatives, the
purchase decision and post purchase behavior marketers can pick up many
clues as to how to meet buyers need.

What according to you are the relative importances of the following?

V. Imp
PRICE
DURABILITY
BRAND IMAGE
COMFORTABLE
LOOKS

50
55
40
54
40

Imp.
28
45
20
36
40

Not so
Imp.
12
0
15
10
15

Doesnt
matter
10
0
15
0
5

60
50
40
30
20
10
0
PRICE

DURABILITY
V. Im p

Im p.

BRAND IMAGE
Not so Im p.

COMFORTABLE

LOOKS

Doesnt matter

Durability and comfort is the most importance factors according to the

respondents. Brand image also affects the purchase decision. People
purchasing a pair of shoes at such a high price often feel that they have
made an investment. They would obviously want to see their shoes last a
long time. To prove this point we draw the example of the authors of this
marketing plan. All of us own a pair of Reeboks and have been wearing
them for well over two years a symbol of the durability of Reebok shoes.

Has any shoes ad (seen on TV/in a magazine) made an impact on you?

YES
43
63
45
30

NIKE
ADIDAS
PUMA
ACTION

NO
57
37
55
70

80

IF YES, THEN WHY

YES

70

NO

60
50
40
30
20
10
0
NIKE

ADDIDAS

REEBOK

ACTION

What features of Puma do you like most?

40
35
30
25
20
15
10
5
0
Air system

Light weight

Enhanced toe
support

Laceless
models

One size fit all

Light weight is important factor for Puma. Pumas designs are considered to
be the most stylish in the industry and beats all others as far as looks are
concerned. Attractively packaged, it is a delight to bring a pair home.

How would you rate the overall comfort in Puma footwear in comparison of other
brands?

Today, the new range from Puma is all about style, design, and comfort.

Fair
20%

Poor
6%

Excellent
33%

Good
41%

The range imbides the spirit of fun and is trendy to the core. There is a
product for every season and occasion.

Would you be to recommend this brand to others?

Hesitant
0%

No
6%

Can't say
24%

Yes
70%

Most of the respondents (70%) points out that they should recommend Puma
shoes for their relatives and friends. Pumas world-class, international design
resources, broad category and consumer end use coverage, and the
utilisation of three product range fashion expressions to appeal to a large
consumer base. The combination of these brand elements attracts Pumas
globally relevant main target consumer, the metropolitan professional. The
brand is currently focused almost exclusively on the footwear category.

FINDINGS
Having carried out an analysis of the customer base, it is possible to
understand who the customers are and what they want. Segmentation is a
critical factor. It is of utmost importance to know which segment to target to
achieve maximum profitability. The study also reveals the various uses of the
product - that a pair of sports shoes is not necessary sportswear; it is also
leisurewear and a fashion accessory. This point increases the importance of
segmentation. The factors and circumstance that affect the buying behavior
and purchase pattern emphasize the need for promotion and provides hints as
to when and how the products can be promoted and advertised. All in all, the
customer analysis reveals various aspects of the consumer base and enables
us to know and understand the market. This knowledge would certainly be
irreplaceable when it comes to marketing and selling the product.
MARKET POTENTIAL
Very broadly speaking, the market potential for Puma sports shoes is the
entire population, i.e. anyone who wears shoes. However, this is too broad a
generalization and has to be narrowed down. It can be narrowed down to
people who wear shoes (as opposed to other forms of footwear). On the next
level are people who wear sports shoes. This group can be further broken
down to mean people with spending power, who like wearing sports shoes.
This final distinction must me made because Puma is a high-quality and
premium lifestyle product. Not everyone can afford a pair. Hence everyone

who uses sports shoes may not be a target audience for Puma, primarily due
to the price factor.
At this narrowest level, the closest competitors of Puma are other
manufacturers of premium quality sports shoes, namely Reebok and Puma.
Calculation of Market Potential
Customers: Indian urban population in the age group of 16 30.
Total = 100 million.
Per capita consumption of shoes = 1.5 pairs / year
Therefore, Market Potential = 100 million x 1.5 = 150 million.
FORECASTS
The two methods applied in forecasting future sales and market potential are
Regression Analysis and another method demonstrated below. All figures
shown are in billions.
YEAR
1980
1985
1990
1995
2000
Total

WORLD
PRODUCTION (Y)
7.9
8.7
9.8
9.8
11.8
48

WORLD
POPULATION (X)
4.5
4.8
5.2
5.6
5.9
26

Method I
Regression line: y = a + bx
Formulae used to calculate the values of a and b:
y = N(a) + bx

X2

XY

20.25
23.04
27.04
31.36
34.81
136.50

35.55
41.76
50.96
54.88
69.62
252.77

xy = ax + bx2
where,
N: Number of observations
Substituting values from table, we get 2 equations:
480

25277

5a + 260b
=

260a + 13650b

ii

Multiplying equation i by 52, we get and solving simultaneously we get:

24960 = 260a + 13650b

iii

25277 = 260a + 13520b

iv

130b = 317
therefore, b = 2.438
Putting the value of b in equation i, we get:
a = 30.8
Hence, Regression Equation: y = 30.8 + 2.438x
Now, x = Population
We now consider the urban population of India belonging to the upper middle
class category and above. This figure is 100 million.
Therefore substituting this value for x, in Regression Equation, we get:
Forecast = 30.8 + (2.438 x 100)
= 0.213 billion
Method II
Potential customers (as calculated above) = 150 million
Growth Rate of sports shoe industry in India = 15%
Forecast = 150 + (150 x 0.15)

= 0.1725 billion.

Since concrete figures on India are not available, some of the figures taken
above are assumptions. Hence, the forecast values according to the two
methods are different. For the sake of analysis and convenience, the figure of
0.2 billion has been taken.

LIMITATION OF THE STUDY

A good project report sells the result of the study, but every project has its own
limitations.
1. The study could not be conducted on a large sample size and area because of
time constraints. This covers all the academic requirements strictly maintaining
organization standards, a sincere attempt has been made to collect information.
2. The number of sample size is 100 respondents.
3. The study is targeted to the population of students, officials, servicemen,
businessmen and professionals.
4. The study is confined only to the Delhi confined limits.
5. The study is limited to the time constraint. And was to be done only in Delhi.

SUGGESTIONS
Since Puma sports shoes (or any other form of footwear) cannot be termed a
consumer durable, the task of maintaining monitors and controls becomes all
the more difficult. Yet, we have attempted to suggest a list of monitors and
controls that will help Puma to keep a track of how their product is faring the
Indian market.
POP Feedback: Point of Purchase feedback forms are a good method of
getting to know what the customer thinks about the product. It gives a good
idea of what (s)he is thinking at the very moment when the has purchased the
product.
Customer Database: The many franchisees and stores can be asked to
maintain records of Puma customers along with purchase details. These
records can be later transferred to a customer database. This database can be
put to various uses in the field of CRM.
Feedback from Brand Loyal Customers: The database mentioned above could
be used to identify frequent and loyal customers. These customers can then
be tracked and questionnaires can be sent to them. This feedback will be of
great use to the company. Of course, some incentive will have to be provided
to the customers to make them fill in and mail these questionnaires back to the
company. Similar questionnaires and form can also be posted on the website
to achieve similar results.

Website Counters: Counters can be put up on the website to measure the

amount of traffic that the site is generating. Further mechanisms can be
instituted to measure the proportion of this traffic that is actually making
purchases.
Events: The many events that Puma organizes or are planning to organize can
be used to generate one-on-one feedback information on the brand.
Generation-X-ers can be approached and their opinions can be taken as
representative of what teenagers and youngsters feel about Puma.
Market Surveys: Market surveys should be organized from time to time to assess how
Nike and its competitors are doing as regards public opinion. These surveys will be
on sports shoes in general and not specifically Puma. Such surveys are likely to
generate unbiased and authentic results.

CONCLUSION
Since puma is already a reputed brand in the market; therefore finance wont
be a problem at all. Therefore in order to create a strong brand image we can
endorse celeb like tiger woods to promote our strategies, that will help to
create a image on consumer mind, that can be made telecast through
advertisements in t v and in mrt and buses or even in magazines like sports
star and sports today. Keeping the collection available in puma website,
because there are people who dont have time to check, by going on around
various store so they can look through the particular website to select product
of their choice and buy the stuff. This can be added advantage for us to
capture those potential customers who love to shop online. It will create strong
brand image.
PUMA also promotes through various campaigns a lifestyle that is
called PUMA VISION. The aim of the campaign is to increase social and
environmental awareness. According to the CEO of PUMA, a better world is
better for our business, our stakeholders, and our consumers, not only for
today but for tomorrow, too . The PUMA VISION is based on four key aspects:
-

Fair: for those who enjoy sports that are not perceived as a traditional
sport.

Honest: not everyone is an athlete - some of us are After Hours

Athletes.

Positive: promoting new, alternative sports to engage people in

physical activity.

Creative: Revolutionizing what is considered a sport.

In their marketing campaigns PUMA involves such stars and celebrities like
Gwyneth Paltrow, Madonna, Serena Williams (early in her career), Nicolas
Anelka or the Jamaican Olympic Team, who are perceived as a cool group of
laid-back athletes. PUMA has also cooperated with Monarchy/Regency, a film
and television production company. As a result of this cooperation, PUMA
products were promoted in such series as Will and Grace and Friends or in
the movie Pretty Woman. Connections with Hollywood enabled PUMA to
promote their products on a global scale at little to no cost.
Pumas advertising strategy was to create dominant presence in media. Puma
created media presence in several trend setting India cities. TV ads linking
Puma to a city were used, but real drivers were huge oversized billboards and
murals on buildings that blanketed cities with messages featuring key Pumasponsored athletes, not products. Adidas took up the competition with Puma
through raising their advertising budget to a level that made it possible to
compete with Puma on the same conditions and the same strength as Puma
did to capture the consumer interest. Adidas did not just spend more money;
they made an impact with brilliant executions. They made TV and other
advertising campaigns.
PUMA focuses on enabling young people who are not athletes to enjoy sports
and alternative physical activities.

BIBLIOGRAPHY & REFERENCES

BOOKS
Marketing Management - Philip Kotler
Analysis for Marketing Planning - Russell S. Winer &Donald R. Lehmann
Building strong brands by David A. Aaker.
Consumer Behavior, 6th Edition, by Lean G. Sehiffman and Leslic lazan Kanuk.
Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.
NEWSPAPERS
Financial Express
Economic Times
Financial Times
WEBSITES
Pume Website: www.puma.com
Nikes online store for India: www.nikeshop.rediff.com
http://fmcg-marketing.blogspot.com/2007/10/puma-to-open-100-outlets-in-4years.html
www.adbrands.net/de/puma_de.htm
http://www.mplans.com/sports_equipment_marketing_plan/financials_fc.php#i
xzz0WAO2xe6M

APPENDIX: CONSUMER QUESTIONNAIRE

NAME
AGE :
SEX :
OCCUPATION :
INCOME:
1. Do you generally use?
Nike

Puma

Adidas

Action

2. How easily did you find the new Puma store location to buy a new Puma
pair
Very Easily

Easily

Difficult

Very difficult

3. Who purchases your shoes?

Myself

A family member

A Subordinate

4. If all the commitments made by the Puma store managers after sale (in
case of defective shoes) are fulfilled.

Dress shoes

90%

Above

Dress casual shoes

Casual shoes

90%

Above

90%

Above

60% - 90%

60% - 90%

60% - 90%

30% - 60%

30% - 60%

30% - 60%

Below

Below 30%

Below 30%

30%

5. Do you ask for a specific Puma brand by name?

Yes

No

6. What prompted you to purchase your shoes?

Impressed with the advertisement
Shopkeeper gave it to me
A well-wisher recommended it to me
Just bought it no specific reason.

7 . What according to you are the relative importance of the following?

V. Imp

PRICE
DURABILITY
BRAND IMAGE
COMFORTABLE
LOOKS

Imp.

Not so

Doesnt

Imp.

matter

8. Has any spots shoes ad (seen on TV/in a magazine) made an impact on

you?
YES

NO

IF YES, THEN WHY

NIKE
ADDIDAS
PUMA
ACTION

9. What features of Puma do you like most?

Air System
Light Weight
Enhanced toe support
Laceless models
One size fit all

10. How would you rate the overall comfort in Puma footwear in comparison of
other brands?

Dress shoes

Dress casual shoes

Casual shoes

Excellent

Excellent

Excellent

Good

Good

Good

Fair

Fair

Fair

Poor

Poor

Poor

Best in its

Best in its

Best in its

class

class

class

11. Would you be to recommend this brand to others?

Dress shoes

Dress casual shoes

Yes,

why

not?

Yes,

Casual shoes
why

not?

Yes,

why

not?

Cant Say

Cant Say

Cant Say

Hesitantly

Hesitantly

Hesitantly

No

No

No