1 BRAND ANALYSIS REPORT PUMA SUBMITTED TO: MS.

Monica Mor Page 1

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3 Table of Contents EXECUTIVE SUMMARY:.............................................................. ..............................................................4 MARKET DISCRIPTI ON:............................................................................. ...................................... ......... 6 CUSTOMER INSIGHT:............ ................................................................................ ..... ............................. .6 PRODUCT CATAGORIES:...................... ................................................................................ ........ .6 COMPETITOR PROFILE:................................................. .............................................................. .. 6 MARKET SHARE :.............................................................................. ................................ ......... ...7 COMPETATIOR ANALYSIS:........... ................................................................................ ..... ........................7 COMPETATIVE SWOT ANALYSIS: ..................... ........................................................................... .... ..... ...8 BRAND IDENTITY :..................................................... ............................................... ................................ 9 BRAND IMAGE: ................................................................. ................................. ......................................10 BRAND PERSONALITY:................................................................... ................................................ ............10 BRAND OBJECTIVES : .............................................................................. ........................................ ...........10 MAKETING MIX: ........... ................................................................................ .............................................11 4 PS:............................ .................................................................... ........... ........................... .....11-14 CBBE MODEL: ............................. ................................................................... ............ ..............................15 BRAND STRATERGY UNDERTAKEN :................... ................................................................................ . ...... 16 REFRENCE:........................................................... ................................................................................ .......18 Page 3

4 Executive Summary Puma was established when the German brothers Rudi and Adi Das sler split their family company, the Bebrder Dassler Schuhfabrik, into Adidas and P uma in 1948. Rudolf Dassler decided to set up a rival to his brother Adis sports shoe factory on the opposite bank of the Moselle River in Herzongenaurach, Germa ny. By the end of the 1950s, the company had become a limited partnership. It wa s the first company to use vulcanization production techniques and the first to manufacture sports shoes with Velcro fasteners. In 1986, the company went public . But Puma was already incapable of successfully competing with Nike or Reebok I t then opted for a radical reorganization that would transform it into a marketi ng-oriented company, which was primarily concerned with how to diversify the bran d into a plethora of lifestyle and fashion options. Pumas company focus thus drif ted away from its traditionally centralized structure to become the first truly v irtual sports company This decentralization is best reflected by the fact that i t has three headquarters, one in Germany; one in the US; and one Hong Kong. Puma was one of the first shoe companies to successfully market sports apparel. Curr ently its major business activities include the design, manufacture, and distrib ution of sporting goods and actively operate in three sectors: footwear, apparel and accessories. Puma products are sold in more than 80 countries on six contin ents. The aim of our project is to develop a strategic brand management plan in Singapore. Our strategic brand management includes the market description, custo mer insights competitor profile, brand image, identity, and personality. Our bra nd strategy and their objectives and the implementation of marketing mix decisio n for brand awareness. Page 4

5 Market Description The sports wear industry in India has a very close working re lationship with the sportsmen which are the midst of a major transformation. In Indian market Puma is present from many years and a good brand image to the Indi an. A convergence of the user, developer and producer has provided Indian with t he regions most sophisticated sportswear sector. In the Indian market athletic s portswear began to evolve from a product line aimed at small and unique market i nto a main stream fashion product. The clear divisions between performance and f ashion function and style formal and informal that once existed have became incr eangisly blurred. The acceptability of casual dress on more occasion parallel th e way for sportswear to move into the mainstream clothing market. The trained wa s accomplished by a real increase in sports participation. The sportswear market in India is well established as well as booming. The demand for sportswear is e ver increasing. Page 5

6 Customer Insight Product Categories : Athletic footwear exercise, baseball, ba sketball, running, track & field. Apparel tracksuits, football strips, and simil ar sportswear. Accessories sports luggage, footballs, and gloves. Competitor Profile : Although Puma has labeled B brands because in terms of their market share, they form a second rung of manufacturers in the sportswear industri es just below the market leader or the so called A brands like Nike, Reebok and Ad idas. So the main competitors for Puma are 1.Nike 2.Adidas 3.Reebok 4.New Balanc e As mentioned above other sports apparel brands almost dominate the market not just in Singapore but elsewhere as well. Puma is one of the poorly marketed prod ucts in Singapore which results in low market share. It is very less popular as compared to other strong competitors. The market shares of these competitors alo ng with the market share of Puma are as follows: Page 6

7 Market share of all sports apparel brands: (Company) Nike Adidas Reebok New bala nce Kappa Umbro Others (Market share) 43.2% 18.03% 10.9% 9.4% 1.0% 1.0% 16.47% Competitive analysis in terms of SWOT analysis: Almost all the sports apparel br ands have strong brand recognition. They all have a wide range of products. Thes e companies are well established not just in Singapore but elsewhere as well. Th ey are all geographically well diversified which has a strong brand recognition. Almost all these brands have good relationships in the form of bonds with sport s clubs, athletic teams, international sponsorships, good endorsements across th e world which help them to be recognized as a global brand. Strengths Brand Prod uct Range Design Weakness Price Young Costumers only Too few stores Opportunitie s Open more stores Cooperate with more designers Consignment goods Threats Intra type competition Intertype competition Comparative SWOT Analysis of sports apparel brands : Nike They are strong as market leaders. They have strong bond with athletic orga nizations At the same time their weakness can be noted as their products are highly expens ive. Most of their profit margins comes from the shoe market. They can take the opportunities of developing sports wear, sunglasses and jewelry. Adidas Their biggest strength is that they have a very strong brand name. Their operati ons are diversified geographically. Page 7

8 At the same time their weakness can be termed as poor margins and low inventor y. They have the opportunity of sponsorships. Puma Pumas strength is lies in the famous brand name and variety of product range such as Athletic foot wear, Apparel, Accessories, gloves. Puma has very less no of o utlets that is the weakness of Puma. Puma can take an opportunity of selling con signments goods and it can also take an opportunity of sponsorship. All the thre e brands have the threat of increased competition and imitation of goods. Brand Identity : Page 8

9 How you want a consumer to perceive your brand can be termed as Brand Identity. We want Puma to be seen as : 1)Young, innovative Brand. People who are young or those who wants to feel young should wear Puma. The customers should feel when t hey energetic, young, full of life when they wear Puma. That Brand Identity we w ant to gain for Puma. 2)A sports Lifestyle Brand Puma seeks to be the most desir able Sports lifestyle company by developing a sustainable, iconic and global bra nd built upon core values such as design, innovation and inclusiveness and commu nicated to thru all consumers touch points from product to distribution to market ing. The result is holistic, meaningful and long term relationship with consumer s. 3)A socially responsible brand. Puma should be recognized as an environment c oncerned socially responsible brand. Puma developed the social accountability an d fundamental environmental standard house with 5 core pillars as a basis for th eir S.A. F.E concept representing a milestone for Pumas corporate social responsi bility policy. Social accountability means puma stands for its responsibility to all its stake holders including Page 9

10 direct and indirect employees, share holders and consumers. Puma needs an act ive dialog with these stakeholders and interest groups such as governmental orga nizations, academia and others. The environmental standards aims to reduce any n egative environmental impact from Pumas business activities and guarantees produc ts are free of hazardous substances. Puma aims at producing environmentally comp atible sports goods. Brand Image : It is the image of the perception which the customer has about you r brand. Sports Brand. It is not at par of Adidas and Nike. People think that it is just a sport brand. They should also wear Puma casually. Puma is not as famous as Adidas and Nike. It has gained the breadth of brand awa reness but not the depth. When people want to buy sports shoes the brand name co me to their mind is Nike and Adidas. Puma does not occur to their minds at first place. People also think that Puma is not a sophisticated Brand. Brand Personality : A Brands relationship with human being, his characteristics a nd personality. Puma can be related to personality which has characteristics lik e innovative, fun loving, exciting, outgoing, energetic, full of life etc. For E xample - A famous Indian young creative Actors like Zayed Khan and Shahid Kapoor who has these traits. Puma can be related to them. Brand Objective : To make Puma as sophisticated Brand Puma to be known as a Sports life style bran d. Puma to be known as socially active and responsible brand. Marketing Mix : Page 10

11 A marketing mix is the combination of product offering used to reach a target ma rket for the organization. It consists of the controllable variable that a compa ny puts together to its target market. Marketing mix comprises the product (what the actual offering comprises) price (the value exchange for that offering), pr omotion (the mean of that communicating that offering to the target audience) di stribution (also known as place, the mean of having the product offering availab le to the target audience) therefore marketing mix also known as the 4 Ps. PRODUCT: In term of product we are going to come up with strategies in quality, warranty, and innovation. a) Quality: we look forward to provide better quality product to our customer, t o differentiate in term of quality standard. Hence, puma has already established its brand reputation over the years. But still there are people, who prefer oth er brands like Adidas and Nike. So to be the first choice in consumer mind we ha ve to increase the standard, so that consumer should have a wish or perception o n their mind to opt for the brand. b) Warranty: we will provide one month warran ty to every customer to gain customer loyalty, that if any fault has been seen a fter purchase we will exchange with a new pair of shoestherefore we can create br and image. c) Innovation: We will be coming up with continuous innovation in our product range, so that the customers get his/her suitable choice. We would like to redesign our shoes and every other stuff, for every age group. Not just spor tswear but in every product of puma, every age group should find their choice of stuff in our product range. There is less interest among customers in Puma due to less product range as compared to the market leaders Nike and Adidas. To chan ge this attitude we are trying to redesign and increase our collection of shoes not just for sportswear but for casual and office wear too. Bringing distinctive and latest trendy design is our prime focus, as we all know that these days, we all are fashion conscious. Page 11

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13 PRICE: We are going to set a competitive price. Due to Chinese new year we will provides 20 % discount to the customer, so that they can buy puma brand and look over the bran d as in compare to other high level brand. Discount on high unit purchase i,e if 4 pair of shoes are purchased in span of 1 year then customer will get 50% to 6 0% off on their 5th one when they will buy, this will grow the customer attentio n toward our brand and they mite switch from buying an Adidas sportswear. We wil l also introduce a innovative way, that on purchase of a pre set limit a free gi ft will be offered. The company will also offer package like a full range of soc cer apparel, including jersey to gloves throughout the year. PROMOTION: I It can be done in various ways. We will sponsor events like Formula -1 car racing, roa d shows or local football match to increase our brand identity and that will create publ ic awareness. We will also sponsor inter school, college and corporate tournamen t, to gain good publicity toward our brand puma and also can indirectly help to get a positive attitude towards puma by our customers. Endorsement: Since puma i s already a reputed brand in the market; therefore finance wont be a problem at a ll. 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 consu mer 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 colle ction available in puma website, because there are people who dont have time to c heck, by going on around various store so they can look through the particular w ebsite to select product of their choice and buy the stuff. This can be added ad vantage for us to capture those potential customers who love to shop online. It will create strong brand image. Packaging: it is also a vital factor. As it invo lves the development of a container and a graphic design for a product . Packagi ng function includes protecting the product from damage. As package can be a vit al part of the product making it more versatile. Like a brand name, a package ca n influence customers attitude towards a product and so effect their purchase de cision, so we will look through our packaging. We will try to use the promotiona l logos of Formula-1 car racing competition in our shoe boxes. It is going to a big sporting event in Singapore and will definitely enrich our brand image if we become successful being one of the sponsor of the event. Page 13

14 The sports shoe industry is estimated to be worth S$70 million, with growth r ates averaging 5-10% a year. Sports shoes have become big business, as more peop le are adopting exercise as a way of life. Function and style are equally import ant for a majority of consumers when it comes to choosing a sports shoe. Consume rs want their sports footwear to be useful for their sport, and to look good on a social level, as they want to wear them on the street as well. However, keen s portsmen continue to stay with high-end performance products with the wide varie ty of sports shoes currently available (ranging from basketball, running shoes, aerobics, tennis, and other sports). This is probably a opportunity for puma to increase and raise the standard of the brand. Hence innovation and increase in p roduct range is seen viable that what puma lack in comparison to other brands. T o create a strong brand image, we will be implementing successful strategies to get into people mind that puma brand is also a better one along with nike and ad didas. Meeting customer expectation is our ultimate goal. PLACE : They are plann ing to open more retail outlets where there is consistent foot traffic with all the latest design and product of puma. We are trying to provide information of o ur latest promotions and product range through mobiles to our customers. It can be easy for anyone to retrieve information regarding Puma anywhere and anytime. This will definitely attract more customers to our Puma stores and help building a strong brand image. Page 14

15 Customer Based Brand Equity :( CBBE MODEL ) 1)Identity (Salience): Right from its inception, Puma has one of the most elegan t logos among sports lifestyle goods. It has further supported its logo by the u se of vibrant colors right from it packaging to its advertisements. People clear ly identify this logo under any circumstances. This identity further brings to t he minds of consumers the unique characteristics of the brand and the usefulness of it. Further it has tried to use this logo by making it larger than life on a ll its products. 2)Meaning (Performance / Imagery): Puma has always fulfilled th e elegant requirements of a true sports lifestyle brand. It has specially design ed products for a lot of sports and furthermore it has created such innovativene ss that these products can be further extended to everyday casual use. People co nsider Puma to be a young brand that fulfils the high image requirements of the youth. It has always laid emphasis on innovation and striking designs in its pro ducts and has positioned itself as a high end fashion brand because of its high pricing. 3)Response (Judgments/Feelings): The perception of the consumers in Sin gapore for Puma has reached from functional to aspirational because not only doe s it fulfill the basic needs but due to its innovativeness and quality level, it has created a feeling of trust among its consumers. Unlike lower brands, consum ers feel a sense of pride using puma products. All the more, the youth have unde rstood its unique offerings and use it at various occasions by not limiting them selves to using it in specific categories. 4)Resonance: Though Puma has improved considerably over the years in Singapore, it has still not achieved the respect showered towards Nike, Adidas and Reebok. People still consider these Page 15

16 brands superior in quality, class and functionality. Puma is trying to reach this level by further creating awareness by emphasizing on being a sports lifest yle brand. Brand Strategy : In 2010, they took an intense look at how to differe ntiate the PUMA brand from our major competitors in the sports market. The brand clarification involved evolving our positioning, a more detailed understanding of our target consumers and a zooming into who we are and how we look at the wor ld with the crucial addition of sustainability to the PUMA brands vision. The Wor ld Cup Year 2010 coincided with the International Year of Biodiversity and PUMA being the brand that joyfully mixes the influences of Sport and Lifestyle with t he desire to contribute to a better world seized the opportunity to combine its passion for sports, Africa and nature.They partnered up with the United Nations Environment Programme (UNEP) and launched the Play For Life campaign to support bi odiversity worldwide and specific initiatives in Africa. Their goal was to raise awareness about habitat and species conservation among football fans and the ge neral public during the Football World Cup and other football events worldwide. PUMAs key fundraising lever was the revolutionary Africa Unity Kit - the worlds fi rst continental football kit designed to be worn by the 13 African football nation al teams that PUMA sponsors. The Africa Unity Kit was approved by FIFATM who off icially recognised it as the Official 3rd kit to be worn by those PUMA-sponsored African teams. With all eyes on Africa during the 2010 football season the Afri ca Unity Kit made a compelling global statement. By supporting the Africa Unity Kit, African teams are not only uniting as a powerful force in world football, b ut also raising awareness of the importance of environmental issues. The Unity K it related products were amongst the top ten sellers in PUMA stores throughout t he duration of the World Cup. PUMA once again lived up to its reputation as the leader in design and product innovation within the Sportlifestyle industry. PUMAs third generation v1.10 football products that were worn by some of the best pla yers in the world - including Samuel Etoo, Emmanuel Eboue, Chinedo Obasi, Mohamed Zidan and Mario Gomez - scooped the prestigious iF product design award 2010 in the Leisure/Lifestyle category. The v1.10 boots and gloves combine high-perform ance materials with an African-inspired design aesthetic. Page 16

17 . Reference: 1)Kevin Lane Keller, second edition, 2003, Strategic brand management, Pearson p rentice hall. 2)Philip Kotler, eleventh edition, 2003, Marketing Management, Pea rson Education inc. 3)About PUMA > Company. 4)Puma - Review - KING OF THE ASTROT URF. 5)About PUMA > Company > Company History. Page 17

18 6)Marketing Mix. 7)Welcome to adidas. 8) http://safe.puma.com/us/en/wp-conten t/uploads/GB-e-2010-sp.pdf 9)Nike.com. 10)Marketing Your Business: Building a Co mpetitor Profile. Page 18