PUMA Presentation Content PDF

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Marketing powerof Puma in the global market...

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MARKET LEADERSHIP AND GLOBAL PRESENCE      

In 2015, Puma became the market leader in sportswear sales in India, leaving Adidas, Reebok, and Nike behind for the first time since Puma entered the market. Puma's success in India was primarily attributed to its marketing techniques, judicious expansion, and customer acquisition strategy. In 2016, Puma made an impact by merging the best from both worlds. Puma competed and celebrated from the European Championships in France to the Olympics in Rio. Puma introduced stylish women’s training collections, revived and reinvented the PUMA Disc, and launched another chapter in PUMA Tricks boots. Puma merged sport and streetwear cues to create the Fierce and the IGNITE evoKNIT. We found our stride, turned goals into realities, and achieved a shift in the perception of our brand. Puma’s visibility increased thanks to purposeful partnerships with ambassadors from sport and culture. Footballers Antoine Griezmann and Hector Bellerin, Grammy-winning artist The Weeknd, entrepreneur and Snapchat-queen Kylie Jenner, and New York City Ballet dancers Mimi Staker and Olivia Boisson are just some examples. DISTRIBUTION STRATEGY/OPERATIONS  Brand Mix The PUMA Group owns the brands PUMA and Cobra Golf as well as the affiliate company Dobotex.  Regional Mix PUMA is structured into four regions: Europe, EEMEA (Eastern Europe, Middle East and Africa), North America and Latin America. As our Asian markets are quite heterogeneous, our Asia-Pacific areas interact directly with our global organisation with no regional reporting level in between. Each region and area is led by a General Manager with full profit and loss responsibility for all countries in the managed region or area. In terms of regional sales priorities, PUMA will continue to leverage its strengths in key growth markets in EEMEA, Asia and Latin America such as India, China and Mexico to ensure stable sales growth for PUMA  Channel Mix PUMA distributes its products via three different distribution channels: Wholesale, PUMAowned and operated retail stores, and eCommerce. Wholesale accounted for 78.1% of our net sales in 2016 and has remained the principal sales channel of the PUMA Group. PUMA expects the highest growth rate for the eCommerce distribution channel.  Product Sales Mix PUMA sells and markets footwear, apparel and accessories in categories such as Football, Running and Training, Golf, Motorsport and Sportstyle. With a heritage of designing shoes for more than 65 years, Footwear is and will be the foundation of PUMA’s business and its key strategic priority, having generated 45 percent of net sales in 2016.

MARKET ADVANTAGE Sourcing from the suppliers :

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In its product portfolio, 90% of its products are sourced from the Asian markets where most of its manufacturing & production plants are located. The sourcing is a big task in Puma which is handled by Big cat Ltd. company who coordinate with 190+ suppliers in more than 35 countries for sourcing & the products. The procurement is one of the most important competitive advantages Puma have.

Broad product portfolio: 

Puma deals in product categories such as footwear, personal care, eyewear, watches, sports accessories and clothing. Being present in interrelated product segments with a large number of offerings helps the brand in getting a high share of wallet & increase in customer basket size.

FINANCIAL ANALYSIS

Gross profit/Gross Profit Margin  In the outlook of the 2016 Annual Report, PUMA fore- casted a slight improvement in the gross profit margin to around 46.0% for financial year 2017.  In the financial year 2017, gross profit increased by 18.0% from € 1,656.4 million to € 1,954.3 million.  The gross profit margin increased by 160 base pointsfrom 45.7% to 47.3%, as PUMA was able to more than compensate for the negative currency exchangeeffects based on the weakness of individual currencies against the US dollar through improvements insourcing, higher sales of new products with highermargins, a higher share of its own retail store sales 1,200and selective price adjustments. Equity Ratio  PUMA continues to have an extremely solid capital base. Total assets increased as of December 31, 2017, by 3.2% from € 2,765.1 million to € 2,853.8 mil- lion. As equity reduced by 3.8% from € 1,722.2 million to € 1,656.7 million due to negative effects from currency conversion which are directly recorded in the other comprehensive income and therefore in equity, this resulted in a reduction of the equity ratio by 4.2 percentage points from 62.3% to 58.1%. SWOT ANALYSIS Strengths: 

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Strengths of PUMA are that it is an established brand in over 90 countries, and is a very popular, well known brand throughout the world. This means that they have a huge target audience. Their famous logo with the jumping cat is today one of the most famous trademarks worldwide . Their extensive product range, from world class football boots to casual hoodies, helps to reach a wide audience and therefore they can reach a large target audience. The brand is in partnerships with other large companies such as Ferrari and BMW; creating famous car racing shoes. This often helps with funding and income as it can often target a different audience, introducing new people to the brand. Similarly, PUMA sponsor many top athletes, as said in previous posts, such as the worldrecord-holding athlete: Usain Bolt. For them this provides major funding as it means that their brand is on show to the world and it must therefore be a good brand if top athletes are using their products. This boosts customer appeal as it acts as a walking advertisement. They were also the official sponsor of the FIFA World Cup in 2006, which again is advertisement to the whole world. · PUMA’s products, in particular their football boots have been creatively and innovatively made through advancements in technology. For example, in the 60s, they were the first sports shoe to use the vulcanization production technique. Today, they use careful study of biomechanics and zoning which leads to the use of specific material and construction in specific areas of the foot in their football boots .

Weaknesses: 

PUMA has tough competition, and limited market share, from large companies such as Nike and Adidas who are in the same market.

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They have less financial strength compared to other brands in the industry meaning that they may not be able to invest in new products or technologies where others might .

Opportunities:  

The company can attain more sponsorship deals through the increase in number of international sporting events to advertise their brand through. PUMA can enter the lifestyle section of the industry, helping to reach a wider audience .

· Threats:  

The current economic situation is very bleak, hence expansion is minimal therefore they may not progress as much as they would like or need. Imitations or fakes of the brand are extensively increasing ....