Puma - See Product Analysis
Puma - See Product Analysis
PUMA GROUP
TECHNOLOGY ENTREPRENEURSHIP (ENT600) : CASE STUDY
All praises to Allah, through his blessings, for giving me strength, spirit and chance to
complete this ENT 600 - Case study assignment. With this Ramadan month that full with
blessing, may Allah accept our good deeds including my responsibility as student. Insha-
Allah.
First of all, I would like to give my fully credit to my supportive and caring lecturer Dr
Athifah Najwani Shahidan, Her patience to support and give advices for us to complete our
task is always meaningful experiences. Even though, without physical class she able to help
for this overall Technology Entrepreneurship course. I have learnt a lot from Dr Athifah on
how to properly do case study and ensure completion of this assignment.
Next, I like to express my thank you toward all my friends that involve internally or
externally on completion on this project, especially my group members. Not to forget, to my
beloved parents and siblings that tend to help, giving input and of courses always be there
when I lose motivation.
‘ENT 600- Technology Entrepreneurship’ gave me experience and extra input regarding
business industry in this modern world. As I am progress with this project many challenges
and problem need to be faced but that doesn’t mean to stop. Although, support and help from
individual that been mentioned before always been significance for me. Thank you once
again.
ii
TABLE OF CONTENT
ACKNOWLEDGEMENT ......................................................................................................ii
LIST OF FIGURES ............................................................................................................... iii
LIST OF TABLE .................................................................................................................... iv
EXECUTIVE SUMMARY ..................................................................................................... v
1.0 INTRODUCTION.............................................................................................................. 1
1.1 Problem Statement ........................................................................................................... 1
1.2 Purpose of the Case Study ................................................................................................ 1
2.0 COMPANY INFORMATION .......................................................................................... 2
2.1 Company Background ...................................................................................................... 3
2.1.1 Mission and Vision........................................................................................................ 3
2.2 Organization Structure ..................................................................................................... 4
2.3 Product/Service Description ............................................................................................. 4
2.3.1 Product .......................................................................................................................... 5
2.3.2 Service ........................................................................................................................... 5
2.4 Technology ....................................................................................................................... 5
2.5 Business, Marketing and Operational Company .............................................................. 6
2.5.1 Business Strategy .......................................................................................................... 6
2.5.2 Marketing Strategy ........................................................................................................ 7
2.5.2.1 Product ....................................................................................................................... 7
2.5.2.2 Price ............................................................................................................................ 7
2.5.2.3 Place ........................................................................................................................... 8
2.5.2.4 Promotion ................................................................................................................... 8
2.5.3 Operational Strategy ...................................................................................................... 8
3.0 PRODUCT ANALYSIS..................................................................................................... 9
3.1 SWOT Analysis................................................................................................................ 9
3.1.1 Strength ......................................................................................................................... 9
3.1.2 Weakness ..................................................................................................................... 10
3.1.3 Opportunities ............................................................................................................... 11
3.1.4 Threat .......................................................................................................................... 12
4.0 FINDINGS AND DISCUSSION ..................................................................................... 13
4.1 Findings .......................................................................................................................... 13
4.2 Discussion ...................................................................................................................... 15
4.3 Alternative Solutions to These Major Problems ............................................................ 16
4.4 Evaluation of Advantages and Disadvantages of Each Alternatives Solution ............... 16
5.0 CONCLUSION ................................................................................................................ 18
6.0 RECOMMENDATION AND IMPROVEMENT ......................................................... 19
6.1 Alternative Solutions choose to be Adopted .................................................................. 19
6.2 Justification of Choices .................................................................................................. 19
7.0 REFERENCES................................................................................................................. 20
8.0 APPENDICES .................................................................................................................. 21
LIST OF FIGURES
PAGES
iii
LIST OF TABLES
PAGES
iv
EXECUTIVE SUMMARY
The following is case study that important and play a vital role for company to solve a
problem. We managed to get a lot of new knowledge about business in the real world. We
managed to get the chance and performing case study about Puma, global brand and sport
retailer. This catch our interest, also develops research to solve problem of a product
Moreover, we did list down SWOT analysis which comprises Strength, Weakness,
Opportunities and Threat. This emphasizes us to be more professional, and ready to face
challenges. Through SWOT it does help a lot, to help you build on what is good, what are
lacking, or even possible to maximize chances to become successful. By times company will
able to update about future trends and new technology in sports.
The main product that I want to study is Puma Compression tee. The
compression piece come with, four-way stretch compression fabric that feature Puma
signature dryCELL moisture-wicking technology. The insert consist with 87% polyester
and 13% elastane. This durable compression tee gives extra support in body key muscle
zones and provide with laser cut ventilation for greater breathability.
However, behind all those advantages of Puma Compression tee, I had notice
several problem. Firstly, it is expensive and not affordable. High chances of competitors
to take advantages of consumer to buy their product such as Nike and Adidas that is
more affordable. Next, there are no such items to improve sport performance for athletes
on the tee. Thus presence of the problem, bring me forward to provide or offer solutions
for it.
Moreover, to solve such a problem will ensure Puma branding work toward
produce a technology improvement. Hence, Puma might be better than other
competitors such as Nike and Adidas. In this study, I will explain more about regarding
the company, the problems of the product and solutions to it.
1
2.0 COMPANY INFORMATION
Business Address PJ Trade Centre, Block A Level 6, No 8 Jalan PJU 8/8A, Bandar
Damansara Perdana, 47820, Petaling Jaya, Selangor
Website https://my.puma.com/
Email [email protected]
Shopee https://shopee.com.my/pumamy.os
2
2.1 Company Background
PUMA is one of the world’s foremost sport lifestyle companies that designs and develops
footwear, apparel, and accessories. It is committed to working in ways that contribute to the
world by supporting Creativity, Sustainability and Peace, and by staying honest to the
principles of being fair, honest, positive, and creative in decisions made and actions taken.
PUMA starts in Sport and ends in Fashion. It is Sport Performance and Lifestyle labels
comprise various categories such as Football, Running, Motorsports, Golf and Sailing. Sport
Fashion features collaborations with renowned designer labels such as Alexander McQueen,
Mihara Yasuhiro and Sergio Rossi.
The PUMA Group owns the brands PUMA, Cobra Golf and Tretorn. The company, which
was founded in the year 1948, and it distributes its products in more than 120 countries;
Puma employs more than 9,000 people worldwide and has headquarters in Herzogenaurach
(Germany), Boston, London, and Hong Kong.
Vision
• PUMA Vision provides their company, their employees, and all their stakeholders
with the 4Keys – Fair, Honest, Positive, and Creative. These 4Keys act as a compass
that always keeps them true to their vision of a better world –PUMA Vision – guiding
all their decisions, actions, processes and practice.
3
2.2 Organization Structure
Anne-Laure Descours
(Chief Sourcing Officer)
Michael Lämmermann
(Chief Financial Officer)
Martin Benda
(General Counsel & Global Director
Legal Affairs)
Neil Narriman
4
2.3.1 Product
Puma Malaysia has produced a quality product to develop faster athletes in this era.
The brand had reputation for fast and innovative product designing to enhance performance
for high performance athletes or recreational athletes. The Puma performance products offer
such as apparel, footwear, training gear, sport equipment and accessories. Athletes who seek
for Puma product would always love to wear with proud. Thus, to be specific we will discuss
regarding Puma Compression Tee/Shirt. It can be wear by team sport athlete to play with
confidence.
2.3.2 Service
• Shipping and Delivery
This service is provided for all around Malaysia. All that is left to do now is to wait
for your parcel to arrive at your doorstep. This service you can apply either in the
official Malaysia Puma website or order from our official store in online shopping
sites in Shopee, Lazada, and Amazon
2.4 Technology
Puma is special with their unique innovation throughout sport, health and fitness
product. Their principles are imagination, peace and sustainability. “Puma starts in sport and
end in fashion” the business concentrated on category such as running, golf, training & gym,
football and etc. (Puma, 2011) Puma workout gear been produce with modern art material
and advanced technology that enable exercise practitioner to gain from their performance.
Puma compression shirt not just focused on design. Thus, their breathable material
and ergonomic cuts are been detailed. Exercise enthusiast can do their best without
restriction. Malaysia is equatorial climate, often being hot, humid, and rainy throughout the
year. Puma been released their training gear through many variations that help athletes to
solve their problem such as lightweight gear, ergonomic design and easy to carry.
5
Puma had develop their own technology been named Puma CELL. They come up
with various function, that tolerating with human physiological and environment. There are 5
of it whereas, warm CELL; Thermal insulation, dryCELL; Moisture management
stormCELL;Weather protection windCELL; Wind protection and coolCELL; Climate control
The microfiber channel moisture to the outer layer of the vest, inner layer of the
apparel remain dry and cool. Moreover, the training vest is less saturated and drying faster.
Puma dryCELL technology incorporated with many sport clothing products. This technology
is featured, when purchasing authentically and original from Puma. The dryCELL logo been
printed on bottom part of the compress shirt
Puma has been helping, inspiring and guiding athletes and consumers for
countless years in their sporting experiences. We were and still inventing and
innovating products for our beloved customers and athletes who are keeping their
trust with us to produce most quality and affordable sports product. With all the
experience the company had since past 7 decades, 13,000 employees in our stores
6
who have passion in sports and recognizing puma as one of the best sports brand in
the world.
Puma is not only focus their products on their quality, the company knows that
design of the products also plays a major role on each products ‘sale because great
design product would likely to attract customers interest. So the company will take
this matter seriously and hire experience and professional designers to design our
products to satisfy customers demand and receive their interest upon the products we
made.
2.5.2.1 Product
Regarding the product, puma have been involving themselves innovating
products to various types of sports like football, running, golf etc. The company
supplies products for its customers at a low cost to give chance to all population who
loved sports to try using the best quality of sport product at a lowest cost as possible.
We also sponsoring the best athletes to use our latest products to get their
honest feedback and to receive great attention and trust from others customers and
athletes.
2.5.2.2 Price
Puma have direct competition from major established brands like Nike,
Adidas and Umbro. In order to tackle this competition, Puma has priced the products
slightly lower than those of the competitors. This allows Puma to look affordable and
acquire new customers. They provide seasonal discounts and loyalty benefits, in order
to retain the customers and increase switching costs for the customers. Thus, Puma
has the competition based pricing strategy, which allows it to look convincing to the
majority of the customers. The brand has been identified as a premium brand. This
gives an insight in the pricing strategy in the marketing mix of Puma brand.
7
2.5.2.3 Place
Puma is structured into 5 regions, Europe, EEMEA (Eastern Europe, Middle
East and Africa), North America, Latin America and APAC (Asia and Pacific). The
reporting layer of APAC was dissolved in 2015 due to heterogeneous nature of the
Asian markets, giving them the direct access to Puma’s global organization. Puma has
three types of distribution channels, wholesale, Puma owned and operated retail stores
and e-commerce stores.
2.5.2.4 Promotion
The promotion strategy for Puma is almost same across different countries.
Generally international sports stars are appointed brand ambassadors. Puma has
national brand ambassadors from each country of its presence. It has been endorsed
by a number of legendary athletes, one of them is Usain Bolt Puma also sponsors
various clubs, teams and associations across the globe as a part of its promotional
strategy.
Puma is also strongly present n digital platforms, and social media. Hence this
gives an overview on Puma marketing mix.
Puma store operational hour is opened every day exclude public holiday.
Puma stores located in many different places in Malaysia. Clients can enjoy
official Puma brand and find their sport needs.
8
Opening Hours
• Monday – Sunday : 10am – 10pm (exclude Public Holiday)
OPPORTUNITY THREAT
1. New target market on apparel 1. High competition
2. Various of choices 2. Different price range on apparel product
3. Producing durable compression shirt than 3. Increase counterfeit product
others
3.1.1 Strength
3.1.1.1 Superb Quality
As been mention on the quality product, Puma develop dryCELL technology that make you
stay dry even you sweat a lot during training or competition. dryCELL absorb moisture on
the skin and release in a drier environment for it to evaporate. Thus, makes athlete to stay dry
as well as cool since human body releasing heat. A soaking wet shirt will cause discomfort
for the athlete, result in body odor.
9
3.1.1.2 Increase flexibility and reduce muscle soreness
Compression tee is well believed to help you maintain or improves your Range of Motion
(ROM). When athlete exercise or perform workout, it involving lot of different movement
such as stretching, jumping, lifting. Compression tee will support this moves get you a proper
ROM. Wearing a loose shirt or normal polyester shirt sometimes will increase risk of getting
injury. Flexibility from this tee offer athletes to exercise well and in a safe manner. Next,
some research found that wearing compression shirt effective for muscle soreness and
fatigue. The effect not only happens when athlete exercise but it last until after workout.
One study by Engel et al., 2016 review about compression shirt. Author stated that endurance
athlete should benefit from improved lactate elimination, reduce muscle pain and
inflammation during recovery. Hence, for elite athletes it is very suitable for them to wear
compression tee as it will optimize their performance. Famous professional athletes, that wear
compression shirt. Such as Usain Bolt, Neymar, Marco Reus, Sergio Agüero who’s been
fully sponsored by Puma.
3.1.2 Weakness
3.1.2.1 Not affordable
Since it is international brand, price may slightly higher than local brand. The price (RM 239)
often fix because less demand. Athletes can own almost same quality compress tee with
lower price from other company, such as Nike Compression shirt RM 129 (Nike Malaysia)
and al-Ikhsan the price is more affordable. People need to wait for promotion to get discount
from Puma.
10
Figure 3.1.2.1.1 Comparison between Nike and Puma price on compression shirt
By wearing the compression shirt, doesn’t mean it grow muscle itself and increase your
strength unless athlete working out on it. This is not device or any technology gear that help
athlete to track performance and give biofeedback. Puma compression shirt act to support and
improve upper body blood circulation. If athlete wear this compression it help athlete to do
proper workout such as correcting body posture and body alignment.
This problem happens among beginner or novice athletes. They might feel discomfort
whereby it is too tight; maybe they think it will limit their movement. Compare when you just
wear polyester, sublimation shirt or jersey. The optimal pressure point for each garment
might not work optimally with different kind of body type. The role to support muscle flow
might change to giving you muscle soreness. This is true even with various types of running-
compression styles. Functional compression shouldn’t hurt while exercising
3.1.3 Opportunities
3.1.3.1 New target market on apparel
According to Compound Annual Growth Rate (CAGR), apparel and footwear industry it
expected highest growth in Asia country such as Vietnam, Saudi Arabia, and India. Puma can
emerge market more on Asia, they can search to expand their market share. Puma can pay
attention on produce more compression tee with a trending design it may attract consumer
especially athletes to purchase. When supply exceeds demand, the price will fall.
11
3.1.3.2 Various of choices
Compression tee come with various styles, it can be wear in long or short sleeves. Come in
with all shapes, styles, colors and size. For example, design for body builders and marathon
runners are different. Puma can widely supplies compression tee upon to running,
gymnasium, and kit for training. Hence, it will increase their sales development.
Compression shirt is not 100% fully beneficence to athletes after wore more than a month.
Puma has chance to collaborate with others technology industry to produce a durable and
sustainable compression shirt. More or less give challenge on other near competitors such as
Nike and Adidas. Sustainable development encourages us to conserve and enhance our
resource base, thus avoid over consumption of our natural resources. Sustainability is key
value of Puma (Bjørn Gulden, 2018)
3.1.4 Threat
3.1.4.1 High competition produces apparel
This is common threat among top international sporting brand such as Puma, Adidas, and
Nike. This company always needs to keep updated on global trends for sporting brands. For
example on apparel, nowadays consumers are looking for lightweight, simple and qualities
that is affordable. The key is to keep doing innovation and do change. Once Puma not making
any innovation to the apparel, consumers will look into others company that following global
trends.
This is nightmare for Puma, whereas Nike and Adidas sell compression tee with cheaper than
Puma does. In term of quality, Puma lead because of its sustainability and durable rather than
other competitors. Puma need to develop their own attraction to convinced, and pursue high
income country to get interest from Puma sponsorship. Puma should priorities the detail on
the product, so that enable for consumer to notice quality of Puma that not expose by other
brands. Athlete will satisfied with valuable tee and price much more reasonable.
12
3.1.4.3 Increase in counterfeit product
There are always irresponsible companies that will copy, the genuine of Puma apparel and
sell them at lower price. Counterfeit always aim for profits and copying it without any
permission as soon as the original arrived at the market. Each time consumer buy counterfeit
good, company loses revenue. In United States, it is illegal to own a counterfeit product. By
purchasing, its means you are supporting criminal activities.
4.1 Findings
Puma has develop compression shirt with dryCELL technology, which there is moisture-
controlling that draw sweat away from. Otherwise, it support to improve blood flow and
enhance performance for professional athlete. However, several issues had been found
regarding this product;
Puma top quality compression shirt result in high price, rather than other brands such as Nike
and Adidas. High income group may able to buy, and enjoy the quality featuring technology
from the shirt. However, low income group may find other brand that is more affordable to
buy and almost had the same quality.
13
4.1.2 Compression tee is not a technology device
Compression tee is not able to help athlete by giving quantitatively data. It is just myth that
when athlete wears this automatically it will increase their sport performance. However, by
wearing the compression shirt it does support your performance in sport. As an example,
when in competition, generally athlete will sweat a lot especially in a hot weather, with this
compression it will help to minimize the discomfort and improve blood flow.
It is not suitable for novice athletes to wear. They might think of by wearing this it will
limiting their movement. When ‘specific’ four-way stretch material not meets in athlete body,
it might cause muscle soreness. By times athletes need to adapt to this type of garment to
make it functional to help support your body ability to increase performance.
14
4.2 Discussion
The compression shirt produce by Puma had their advantages and disadvantages for user. As
been state in findings, (3) issues had been ruled out. It is needed to improve and overcome;
First issues that have been mentioned are not affordable and quite expensive. As we
know, to compare with Adidas and Nike compression shirt, Puma come with premium price.
Puma need to ensure that client will buy the product with satisfaction means the quality meet
the standard and the price. Detailing on the quality of the product had high chance to
athlete/client purchase it and experience the difference with the quality by Puma.
Next, the second problem that had been identifies are too tight. Novice athlete will
experience discomfort if they are unfamiliar with this kind on apparel types. Athlete always
need to wear those compress shirt to enable them cope with the problem. They need to wear
compression in any type of physical activity such as when perform field training, gymnasium,
or even when for swimming. It able to make the athlete familiar with it and may be the aid to
support and enhance performance.
Lastly, problem that need to be improve are compression tee is not a technology
device. It is fact that compression shirt unable to track data quantitatively, it may enhance on
qualitatively, athlete can develop their own task-intrinsic feedback on his/her performance.
An improvement can be made on producing both on quantitatively compression shirt. A
Global Positioning System (GPS) can be place on specific part on the compression shirt. It
will able athlete to track their data such as acceleration, when sprinting.
15
4.3 Alternative Solutions to These Major Problems
Problem 1: Not affordable
• Make it cost-effective
• Detailing about the quality of dryCELL technology on the product
Solution: Ensure product worth it to buy, Puma should detail the qualities of compression tee.
Such as there are target compression zones for extra support and muscle stabilization.
Advantages:
• Compression tee quality meet the standard and needs for professional athletes
Disadvantages:
16
Problem 2: Not improve sport performance
Solution: Provide a device that can give two function, sweat-control compression piece and
GPS track to measure high performance athletes.
Advantages:
Disadvantages:
Solution: Athletes need to wear the compression piece frequently, by times athlete will adapt
to it and ensure the comfort.
Advantages:
Disadvantages:
17
5.0 CONCLUSION
To put in nutshell, Puma did a great job on producing a compression shirt, which may
be beneficence on athlete. There are rooms for improvement for Puma, by always fill up the
gap to create a better athletes. There is important point that leads to weak production which is
too pricey and no technology features.
Moreover, use of GPS tracker will bring a new features of technology in the
compression shirt and meets the sports science standard. This tracker would be able for
coach to train athlete based on quantitative data that is more accurate rather than just
qualitative observed. There a lot details or steps that should be done by company to ensure
the innovation on a product meet needs for athletes, compete in markets and increase its
sales. By implementing SWOT analysis, company can held a planning and discuss further
about strategies that can be applied. Thus, Puma Company can make decisions about best
path of the innovation. Identify any opportunities for success in context of threat that able to
clarify directions and choices. In addition, it helps to explore more about sales, productivity
and product development. Outcome of this research enable to explore sports science
technology among athlete. Able for me to observe, learn, and connect to new ideas to
improve one product by doing this effective case study. The products that will be develop, of
course cost-effective, quantitative analysis on performance and attractive features for both
coaches and athletes.
18
6.0 RECOMMENDATION AND IMPROVEMENT
Puma are one of global brand company that is very famous around the world. Puma
has shown a very good improvement throughout the year in much aspect. The product had
been developed and manufactured by Puma compete with others famous brand such as
Adidas, Nike, Under Armour and etc. Puma had developed compression kit to ensure a better
performance for athletes. However, several weaknesses had been address on the product and
improvements should be done. Puma come with a classic function of compression piece.
Puma can develop a compression shirt that increases athlete sport performance with a GPS
tracker. Moreover, it can be benefit for exercise enthusiast, to record data and track their
performance
Solution: Improve the compression shirt with adding device/GPS tracker on the product.
It can be place on the back of the shirt. The device comes with small, light, and easy to
carry. Next, it can connect to phone for video analysis. It designed to push performance to
new insight
19
7.0 REFERENCES
The Top 3 Brands in Sportswear. (2017, October 14). Retrieved from Sportsleisurewear:
https://www.sportsleisurewear.com/The-Top-3-Brands-in-Sportswear.html
Exo-Adapt Men's Long Sleeve Training Tee. (2021). Retrieved from PUMA Sports Goods Sdn Bhd,:
https://bit.ly/2QzmFYm
Engel F., Sperlich B., Stockinger C., Woll A. (2016). Compression Garments in Sports: Athletic
Performance and Recovery. Springer International Publishing.
Kailus, J. (n.d.). Athletic compression clothing – weighing the pros and cons. Retrieved from Mens
Journal : https://www.mensjournal.com/gear/athletic-compression-clothing-weighing-the-
pros-and-cons/
Momin, A. (2020, October 10). Puma SWOT analysis 2020: Case Study in 4 Steps. Retrieved from
Pestleanalysis: https://pestleanalysis.com/puma-swot-analysis/
Pratap, A. (2019, December 4). PUMA marketing mix. Retrieved from Notematics.com:
https://notesmatic.com/2019/12/puma-marketing-mix/
Quinn, N. (2019, July 7). Puma SWOT Analysis & Recommendations. Retrieved from Panmore:
http://panmore.com/puma-swot-analysis-recommendations
World. (2019, May 29). Rise in fake goods trading. Retrieved from World footwear :
https://www.worldfootwear.com/news/rise-in-fake-goods-trading/3735.html
20
8.0 APPENDICES
21
Figure 8.4: Football player wearing Puma compression Tee
22