Marketing – II Assignment -2

PUMA

Submitted by,

O.B.Vishnu Ruban
2012PGP236
Section – A / Group No. - 4
IIM Indore
Date of Submission: 15/01/2013
 Marketing – II Assignment 2 Vishnu Ruban OB – 2012PGP236

TABLE OF CONTENTS

Particulars Page Number

PUMA – Background 2
What is PUMA and Why chosen this brand? 2
Marketing Mix 3
----Product 4
----Price 4
----Place 4
Promotions – A detailed report on PUMA’s promotion strategies 5
----Promotion Strategy 5
----Advertising Program 6
----Concept Retail Stores 6
----Sponsorships 7
---------Pele 7
---------Usain Bolt 8
----Events 9
---------Bring it back bin 9
---------Speed Test 10
---------FIFA World Cup 10
----Corporate Social Responsibility 11
---------Soles4Souls 11
---------Puma Sustainable supply chain 11
---------Launch of Eco friendly bags 12
---------Puma Social 12
Conclusion 12

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 Marketing – II Assignment 2 Vishnu Ruban OB – 2012PGP236

PUMA
PUMA - Background:
History:

Puma SE, officially branded as PUMA, is a major German multinational company that
produces athletic shoes, footwear, and other sportswear. The company was formed in 1924 as
Gebrüder Dassler Schuhfabrik by Adolf and Rudolf Dassler. The relationship between the
two brothers deteriorated until the two agreed to split in 1948, forming two separate entities,
Adidas and Puma. Both companies are currently based in Herzogenaurach, Germany.

Following the split from his brother, Rudolf created a new

firm that he called "Ruda", from "Ru" in Rudolf and "Da" in
Dassler. Rudolf's company changed its name to Puma
Schuhfabrik Rudolf Dassler in 1948. 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", with
clothing and other products having the logo printed on them.
Figure 1: PUMA - Formstripe
Business turns:

Puma became a public company in 1986, and thereafter was listed on the Börse München and
Frankfurt Stock Exchange. In May 1989, Rudolf's sons Armin and Gerd Dassler agreed to
sell their 72 percent stake in Puma to Swiss business Cosa Liebermann SA.

Present day:

Puma AG has 9,500 employees and distributes its products in more than 120 countries. For
the fiscal year 2003, the company had revenue of €1.274 billion. Puma ranks as one of the top
shoe brands, after Reebok, Adidas, and Nike.

The company has been led by CEO and Chairman Jochen Zeitz since 1993. His contract was
extended until 2012 in October 2007. Japanese fashion guru Mihara Yasuhiro teamed up with
Puma to create a high-end and high-concept line of sneakers

Reference: http://en.wikipedia.org/wiki/Puma_SE

What is PUMA and Why chosen this brand?

Puma – A brand synonymous with Fashion, style, and sport.
Through Fresh design, co-branding and partnerships with celebrities and famous designers,
Puma has elevated their brand image so that it now competes with fashion brands as well
as their traditional rivals in the sporting footwear industry.
My favourite sportswear brand due to its sporty, stylish looks, engrossing logo and colours

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 Marketing – II Assignment 2 Vishnu Ruban OB – 2012PGP236

PUMA
Reason for Being Mixing the infuences of sports, lifestyle, and fashion
Value Proposition Fits your active lifestyle
Persona Elegant, colorful, fresh, spontaneous, individual, metropolitan,
international
Associations Fashion brands (Gucci, Armani, Dolce Gabbana).
Fringe / extreme sports.
Music artists & movie stars.
Audience Anyone who leads an active lifestyle

Marketing Mix:

Products: Place:
• Footwear
• Shoes, Sandal, Slippers • Direct Sales
• Apparel • Retail Outlets
• T-shirts, Shorts, Track suits, Jackets, • Online Sales
• Accessories • Indirect Sales
• Gloves, scarves, Belts, caps, hats, • Franchisees
wallets, socks, water bottles • Online Sales - Retailers
• Sports Equipments • E-Commerce - Yes
• Cricket - Bat, Pad, Gloves
• Football - Boots, Shin Guard, Stockings
• Golf & Tennis - Apparels

PUMA
Promotions: Price:
• Sponsorship
• Athletes, Players • Value Pricing
• Event Sponsorship • Seasonal Pricing
• Olympics, Marathon, World cup • Range
• Social Programs • Footwear - Rs. 599 to Rs. 11,599
• Charity • Apparels - Rs. 699 to 5,999
• Campaigns • Accessories - Rs. 399 to 6,499
• Sales Promotions • Sports Equipments - Rs. 1,349 to 17,999
• CSR

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 Marketing – II Assignment 2 Vishnu Ruban OB – 2012PGP236

Products:
Initially it started as a footwear retailer. Now it has improved its portfolio to become leader in
footwear, sportswear, sports goods, and fashion accessories.

Price:

Puma’s pricing is designed to be competitive to the other

fashion shoe retailers.
Pricing is based on the basis of premium segment as target
customers.
Puma as a brand commands high premium.

Place:

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 Marketing – II Assignment 2 Vishnu Ruban OB – 2012PGP236

Puma shoes are distributed to Multi-Brand store front and the exclusive Puma stores across
countries.
Puma is continuously focusing on retail expansion and retail-specific knowledge through
the opening of new stores.

Puma Online store:

This site markets the Puma brand, but is focused on selling its products directly to the
consumer. It contains an extensive online catalogue, current news on Puma, employment
opportunities, new items and an online shop
An interactive online shopping for consumers from extensive online catalogue; very user
friendly site with easy navigation

Promotions – A detailed report on PUMA’s promotion strategies:

Promotions Strategy:

“New Stuff” advertising campaign:

The communications I chose to analyze

are the “New Stuff” ads on TV and inprint
featuring animals interacting with Puma
products in adoring and distinctive ways.

Targeting a youthful audience:

PUMA decided to communicate their

brand image through a product-focused campaign that conveys cutting edge style to a 16-34
year old audience.

Style focused messages:

Puma introduced the award winning “New Stuff” campaign as a way to showcase their
design leadership. New stuff print executions highlighted the freshest new Puma styles and
the commitment that Puma has to providing customers with innovative sport lifestyle
products.

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 Marketing – II Assignment 2 Vishnu Ruban OB – 2012PGP236

Attracting new customers:

New products needed to be showcased to the mainstream audience in a creative and unique
way that was “unexpected, unique and different”. To communicate this concept, animated
animals such as monkeys, bats, bees, mice, and fish are depicted as playfully interacting with
Puma products in an engaging and fresh manner.
Usage of mixed media:

Puma first introduced this campaign in 15 second television advertisements. The campaign
was visually fresh and clean with crisp photography that drew attention to the products. The
print advertising that followed reflects the focused simplicity and whimsical nature of the TV
spots.
Building momentum from the holiday season:

TV spots were run in November and they drew inspiration from Aesop’s fables by depicting
two typical adversaries gifting each other Puma presents. Based upon the success of the TV
ads, print ads were run into the following two sea-sons highlighting new Puma products.
Elements of the ad migrated into surrounding media environments, engaging advertising
savvy young adults who might be suspicious of broadcast advertising.
PUMA’s Advertising Program:

The 4M’s of PUMA’s Advertising

program,
Market- Youths aged 16-35.

Mission- To increase sales and the

mainstream audience’s knowledge of
Puma ranges and project the brand’s core
values as being different
Message- “Active lifestyle”

Media - TV Advertisements, Print Ads

This picture shows the new range of

PUMA’s Mongolian shoes.

Puma engages customers through their

Mongolian barbeque concept that enables
customers to design and build their own
footwear from scratch.

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Concept Retail Stores:

To extend their brand Puma has

created concept retail stores that
enable people to experience the
brand in engaging and compelling
ways.

Puma set up this space in the Old Truman Brewery near the
Olympic stadium. Branded with Jamaica’s team colours, the
space was the venue for appearances from the track and
field team, including Usain Bolt, as well as live-performances
from the likes of Groove Armada and Professor Green. An
interesting way for brands to interact with the public
during Olympic Games.

Reference: http://shoparazzi.com/blog/2012/07/31/puma-yard-pop-up-at-brick-lanes-old-
truman-brewery/

Sponsorships:
Sportstars – Pelé:

At the 1970 FIFA World Cup, Pelé complied with a request by Puma's representative Hans
Henningsen to increase the awareness and profile of Puma after he received $120,000 to wear
the Formstripes. At the opening whistle of a 1970 World Cup finals match, Pelé stopped the
referee with a last-second request to tie his shoelaces before kneeling down to give millions
of television viewers a close-up of his Pumas.

Two years later, during the 1972 Summer Olympics, Puma provided shoes for the Ugandan
400 metres hurdles champion, John Akii-Bua. After Akii-Bua was forced out of Uganda by
its military government, Puma employed him in Germany. Eventually Akii-Bua returned to
Uganda.

Reference: http://en.wikipedia.org/wiki/Puma_SE

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Usain Bolt:

PUMA has always been successful in finding

the right partners, who perfectly reflect and
convey the image of the brand around the
world. Sprint superstar Usain Bolt and the
Jamaican track and field team perfectly embody
that sports, fun and style have always been key
elements in PUMA’s brand strategy. At the
Olympic Games 2008 in Beijing, Usain Bolt set
a 100m world record of 9.69 seconds, smashing
his own mark from May that year and sprinted
200m in the world record time of 19.30 seconds, beating Michael Johnson’s 1996 record by two
hundredths of a second. He won his third gold medal as Jamaica shattered the world
record in the 4x100m relay in 37.10 seconds.
In close collaboration with Usain Bolt, PUMA
developed the Theseus II, the ultimate running
shoe. Running the 100m and 200m, the
Jamaican sprinter needed a versatile shoe that
provided support for power, as well as firmness
to hold his foot in place around the turn. PUMA
produced a gold version of the shoe for Beijing,
which helped power him through the greatest
sprints of his life so far.

At the World Athletics Championships 2009 in Berlin, Usain Bolt wrote sports history again
when he smashed the 100m and 200m world records. The PUMA Yaam sprint spike that

propelled him to victory was developed by a team of PUMA designers and technicians who
studied and measured Bolt’s stride and foot form. The vibrant orange sprint spike, designed to
contrast the Olympic Stadium’s signature blue track and Usain’s way of achieving
outstanding performances, mixing sport and style, caused a global stir.

Reference: http://www.marketingweek.co.uk/news/puma-marketing-sparks-locog-
enquiry/4002276.article, http://counterkicks.com/2011/10/puma-faas-400-usain-bolt/

Events:

BRING IT BACK BIN:

Bring Back Bin Recycling Program, to take in those old items, and turn them into recycled
goods. Parts of old sneakers can be turned into athletics grounds, carpet pads, automobile and
home insulation. Other materials can simply be recycled to produce new products, preventing
the unnecessary use of virgin raw materials.

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 Marketing – II Assignment 2 Vishnu Ruban OB – 2012PGP236

The program itself, which PUMA runs in cooperation with global recycling company I:CO, is
quite simple – consumers bring used shoes, clothing and accessories from any manufacturer
to a PUMA Store and deposit them in the
designated Bring Me Back bins. The used
products are then sent off to be reused or
recycled. PUMA explaines that this means
they are either broken down and reused to
create raw materials, or they will be
reused if they are still in a suitable
condition, or they will be recycled into
new products. In addition, the fun (or sad,
depending on how strongly you’re
attached to your shoes) part, people who
want to say last words to their favorite
pair of sneakers or other pieces of clothing, can write a short obituary and upload it with a
photo on the program’s website.
“While we have already implemented numerous initiatives to reduce PUMA’s footprint on
our mission to become the most desirable and sustainable Sportlifestyle company, the PUMA
InCycle collection is the first step to help reduce the amounts of garbage that consumer
products cause at the end of their lives.”- CEO, Puma

Reference: http://www.triplepundit.com/2012/06/pumas-new-recycling-program-offers-shoe-
lovers-write-obituary-shoes/

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Speed test:

To test their speed against world

record holder and fastest man alive,
Usain Bolt, in PUMA’s ‘Everyone
can Bolt Speed Test’, and stand to
qualify for great discounts on PUMA
product.

PUMA, technical supplier to the Old

Mutual Two Oceans Marathon, will
operate their Usain Bolt Speed Test
mini-track – an electronically timed
speed trap where the public can test their running speed against Bolt’s.

Reference: http://www.splashpr.co.za/usain-bolts-speed-test-at-old-mutual-two-oceans-
marathon-expo

FIFA - World Cup:

Puma converted an old Luxliner bus into a moving

gear store and will be travelled around the country
during the month long World Cup allowing fans to
touch then on their bus.

Bus looks cool, just hope the clothing won’t be all

beer-stained and smell like cigarettes by the time
they hit Joburg, but we’re sure it won’t.

PUMA’s Gear Box, converted by Designamite, was

fully equipped as a mobile store so that fans across the country will be able to shop onboard.
The interior of the former Mercedes Lux Liner owes its customer-friendly design to ‘The
Passion’ bass guitarist from the Dirty Skirts.

Besides taking in smaller country towns, the Gear Box will also make appearances at PUMA
Party Safaris that are planned for Johannesburg, Port Elizabeth, Pretoria, Cape Town and
Durban.

Reference: http://www.cherryflava.com/cherryflava/tag/puma/page/2

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Corporate Social Responsibility

Soles4Souls:

At PUMA City NY at the Seaport,

PUMA joined forces with sneaker-
minded charity, Soles4Souls, a global
organization that brings footwear to
those in need. On Saturday, June 26,
PUMA hosted a giant outdoor Shoe
Toss at the Seaport as a fun way to
donate your old kicks!

The message was “Bring in any pair

of slightly worn-shoes - any brand,
any style - for 30% off a new pair of
sneakers!”

At the PUMA Shoe Toss, one can pitch his/her shoe donations at three targets to win prizes
like PUMA Store gift cards and tote bags. Everyone took home something, including that
discount coupon for their new pair of PUMAs, just for participating.

Reference: http://www.puma.com/events/puma-bares-its-soles-for-soles4souls

PUMA Sustainable supply chain

PUMA is an active member and supporter of the

German Sustainability Code, a resolution passed by
the German Council for Sustainable Development
with the aim of making sustainability efforts of
companies visible and comparable providing a broader
basis for the realization of sustainability.

On 31 October 2012, Adidas Group, C&A, G-Star

Raw, H&M, Levi Strauss and Co., Li Ning, NIKE,
Inc., PUMA SE, and Jack Wolfskin released the 2012
Joint Roadmap Third Quarter Progress Report
updating progress toward zero supply chain discharge of hazardous chemicals (ZDHC) by
2020. As part of the ZDHC programme’s commitment to transparency, this report highlights
progress as joint roadmap signatories move toward achieving a new standard of
environmental performance for the global apparel and footwear industry.
Reference: http://about.puma.com/sustainability/

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Launch of Eco friendly bags:

Puma’s “Clever Little Bag” will significantly

reduce the amount of waste and CO2 emissions
that traditional product packaging such as shoe-
boxes and apparel polyethylene bags generate.

This sustainable packaging and distribution

system, developed in partnership with
renowned industrial designer Yves Béhar of the
San Francisco based fuseproject, marks a
pivotal phase of PUMA’s ambitious long-term
sustainability programme and underpins its
target of reducing carbon, energy, water and waste by 25%, and developing 50% of its
international product collections in footwear, apparel and accessories according to best
practice sustainability standards by 2015.
Reference: www.puma.com/cleverlittlebag

PUMA Social:

Message - All of us have a bit of an an ‘after

hour sports person’ in us, and for that very
reason that is why a night at the Puma Social
Club is an absolute must.

These will include social parties, live music gigs

(including performances by big guns Groove
Armada, Gyptian and Professor Green),
sports and film viewing, sports events for
aspiring athletes and Q&A sessions with
different industry influencers and of course discount on exclusive Puma pieces from this
event. A night party where people can join and party like a sports person.

Conclusion:

Key learnings from this report (i.e., Puma’s Success story) are,

A good extensive distribution network should be present for a brand to shine

High Qualitative products will arise from Research, which will lead to producing better
products.
Meeting demand is good thing. But Creating a demand and meeting it gives fruitful
rewards.

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