Puma Market Analysis; MKT-315 PDF

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Ciara Randle El MKT-315 Dasi Danzig January 26, 2020 What is Puma? Puma is an athletic footwear and apparel brand that started in Herzogenaurach, Germany. The original founder, Rudolph Dassler, opened a manufacturing company with his brother and branded the name PUMA. By 1948 the company was off and running and became well known throughout its originating country. Today there are more than 600 stores and their products can be found within other retail stores. There are more than ten thousand people worldwide who are employed with the company, who have been trained to keep the company mission in mind which is “to be the Fastest Sports Brand in the world.” This is supposed to encompass the idea of being ahead of the competition who reside in the sporting goods industry. Every brand or company must have a marketing strategy in order to succeed it its residing industry. The best thing to do is to break down strategic priorities and get a clear idea of what needs to be accomplished. A few of Puma’s many strategies are repositioning Puma as the World’s Fastest Sports brand, the improvement of product engine, the optimization of distribution quality, increasing the speed within the organization and renewing the IT infrastructure. The brand focuses on its ambassadors like Rihanna and Usain Bolt for campaigns in order to gain a large amount of attention in the media. Allowing these ambassadors to create and distribute their own shoe also brought the attention of a whole new market. Puma acknowledges the fact that the market segment of female consumers has been above average for

sports products. Because of this, they are now focusing on strengthening their strategic focus on the female target group. Puma has a variety of strengths that makes it the company that it is. Some including marketing sponsorship, research and development, and brand equity. The organization spends a great amount of time and money in promoting its products to and around the world. All of this being done through sponsorships. Whether it be individual athletes such as Marco Verratti, or associations like the Federal International Football Association (FIFA). The brand’s research and development team are always trying to find new solutions to real world problems. Their products are distributed throughout more than one-hundred and twenty countries and are handled by more than ten thousand employees. The company’s logo strongly represents the brand and is easily recognized by consumers. While every company has their strengths, they also have weakness. Factors such as competition, financial strength, and wage dispute can have a huge impact on an organization’s success. Although Puma is one of the leading brands in athletic footwear and apparel, the business faces a great deal of competition. Organizations such as Adidas and Nike tend to give Puma a run for their money, as they all invest in the same products and target audience. The brand does not make nearly as much money as its leading competitors, which leaves them fallen behind without the funds to introduce new and improved technology into the sporting industry. Last but not least, over the years employees have challenged the company regarding their pay. Many workers tend to go on strike, and of course it does not look good for a brand when its own employees are refusing to come in for work over issues as such. New opportunities are thrown out into the retail industry all the time, and Puma has a few that should always remain in the mix. The company can never go wrong in making sure that the

brand is reaching new target markets, creating new products, and developing new relationships through sponsorships. Focusing on new emerging markets in other countries can also expand its market shares. Conducting research on where the highest growth is expected within the footwear industry, is where Puma should focus on increasing their sales. If Puma attempts to create more products that are not only for sports, but also for apparels in lifestyle they will reach a whole new market. The brand will be able to test this out once they are able to increase their income. This money can be earned by creating more sponsorships with not only athletes but also other wellknown celebrities. As the brand starts to expand new threats will start to affect and hinder its success. A huge issue that tends to come to light within the retail industry are fraud products. Companies will create a product that replicates that of a famous brand, but at a much lower price. Usually there is not a lot that a brand can do in order to stop them from stealing ideas, and this is what causes a decline in sales. A decline in sales will not tie in well with the economic conditions that we are living in today. Economic conditions refer to the state of the economy within a country and these are changing all the time. Changing times could easily alter Puma’s decision in expanding and opening new stores.

References Bhasin, H. (2019, May 8). SWOT Analysis of Puma - Puma company SWOT analysis. Retrieved from https://www.marketing91.com/swot-analysis-puma/ Mitchell, C. (2019, July 7). Puma's Mission Statement and Vision Statement (An Analysis). Retrieved from http://panmore.com/puma-mission-statement-vision-statement-analysis PUMA's History. (n.d.). Retrieved January 26, 2020, from https://about.puma.com/en/this-ispuma/history-timeline Targets and Strategy. (n.d.). Retrieved January 26, 2020, from http://report.puma-annualreport.com/en/group-management-report/puma-group-essential-information/targets-andstrategy/...